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5 as before. In contrast to Africa's variable exchange rates over the wide continent, with its many nations, China, "keeps its currency tightly pegged to the dollar," and has begun to pursue the American market much more avidly, especially since it has been freed from the "so-called multifiber arrangement, which for decades set nation-by-nation quotas and capped its garment exports to the developed world." (Wines, 2005) This comparison also highlights how different nation's currency policies can cause developing nations to be at war, rather than at harmony with one another in terms of competing for United States dollars. "And for good reason: garment makers represent as many as 9 in 10 manufacturing jobs" in many impoverished African nations. (Wines, 2005)
Yet the American consumer may seem to be above this trade war fray between developing nations, no pun intended, as "American shoppers may register the dollar's fall, if at all, as an irritating uptick in the prices of imported goods." (Wines, 2005) With a progressive government and extremely low tax rates, Lesotho used to be one...
But the weak dollar is particularly bad economic news for countries that are not on a dollar-parity system, ironically even worse news than for the American nation itself. (Wines, 2005)
But there is a bright side to this economic gloom for Lesotho. "Lesotho may not always be cheapest, but it is dependable, honest and squeaky clean on human rights and sweatshop issues," motivating socially conscious garment buyers in the United States, like Levi Strauss and Gap, which to maintain or increased their orders, despite the higher labor costs. (Wines, 2005) and these companies may win out in the long run, as China's continuing problems with its human rights record may alienate consumers from buying products manufactured in that nation.
Works Cited
Wines, Michael. (12 Mar 2005) "Dollar's Fall Silences Africa's Garment Factories." The New York Times. Retrieved 19 May 2005 at http://www.nytimes.com/2005/03/12/business/worldbusiness/12africa.html?pagewanted=2&ei=5090&en=e251124b28c27a28&ex=1268283600&partner=rssuserland
Works Cited
Wines, Michael. (12 Mar 2005) "Dollar's Fall Silences Africa's Garment Factories." The New York Times. Retrieved 19 May 2005 at http://www.nytimes.com/2005/03/12/business/worldbusiness/12africa.html?pagewanted=2&ei=5090&en=e251124b28c27a28&ex=1268283600&partner=rssuserland
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