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Transition Of Corporate Power And How It Effect Fashion Industry - Assignment Example

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The paper explores Transition Of Corporate Power And How It Effect Fashion Industry. The fashion industry as any other sector of the economy has taken steps in the improvement of its governing and development. The industry has aimed to increase production…
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Transition Of Corporate Power And How It Effect Fashion Industry
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Download file to see previous pages The paper "Transition Of Corporate Power And How It Effect Fashion Industry" discusses Transition Of Corporate Power And How It Effect Fashion Industry. In the fashion sector, the corporate should be focusing on the governance so that they maximize residuals and in thecases of investor-owned firms, theyhave to make a pro datadistribution to theshareholders. The pro-data distribution allows accountability when it comes to government subsidies and the role of labor laws and community interest. An example of a transition of corporate power in thefashionindustry is China. China is one of the largest consumers of textile with its population of 400 million, giving a high demand for textile. In the past, the fashion industry has faced problems starting from insufficient raw materials and inadequate technology. In 1950, the Chinese government started it five-year plan with the construction of cotton mills, printing and dyeing plants. The plan was not only meeting the demands of the growing population but also to provide employment. The government solely embarked on the production, structure and distribution. It however failed to meet the requirements of its population, so the government introduced a modernized method of the open policy. Therefore, allowed foreign direct investors to do businesses in China. It also enabled China to renovate its outdated industry rapidly and also make new economic ties with other countries. The result was a transformation of the intermediate products like thread.
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