The decline of department stores in the U.S, England, Germany, and Italy was largely due to the economic crisis brought by the sudden spike in prices of goods and services. The crisis was triggered by the upsurge in oil prices, sudden decline in jobs, and the increasingly competitive economic arena (Rosen, 2002, p.129, par. 1). The decline in the economy led to a decrease in household income. As a result, the departmental stores suffered a drop in apparel sales due to consumers’ inability to purchase the products.
On the other hand, the profitability paradox has adversely affected the reduction in profits due to the overstock of merchandise and the increased retail space development. For instance, between 1974 and 1984, the number of retail centers increased by 70% (Rosen, 2002, p.188, par. 2). Moreover, the over-expansion made it difficult for the department stores to maintain the levels of profits needed to meet the business expectations. This triggered a decline in gross profit margins even with the increased sales witnessed in these department stores.
Conversely, the profitability paradox has altered the retail system of business. It has influenced retailers to adopt new strategies of reducing and increasing product prices throughout the sales seasons. Furthermore, the retail industry have shifted to relying on cheap labor from the less developed countries, enabling them to lower their prices, thereby outpricing the department stores (Rosen, 2002, p. 195, par 2). Conversely, in this time of instability, the industry has prevailed through market segmentation and diversification of products (Lent, 2018). It has employed the pricing segmentation criteria to differentiate its products by seeking lower-cost textile retail. Equally, the industry has incorporated Service diversification and complementary products to ensure its stability in the market.
Additionally, the recent retail flux the world is witnessing stems from the current health crisis and the war between Ukraine and Russia. The pandemic has led to economic issues such as inflation, while the war in Ukraine has increased energy costs and transport (Kim, & Woo, 2021). Therefore, to stabilize the retail industry, cost-effective diplomatic negotiations between Ukraine and Russia are required to help end the war. Similarly, the economic cautions by governments to the retail sector to increase production is vital in solving these issues.
The CBI was critical to Reaganomics in aiding the establishment of stable Caribbean basin economies by giving duty-free access to the US market for beneficiary countries (Busbin, 2015). This was crucial for the United States in importing raw materials from Latin American countries. In exchange, the US provided them with capital and manufactured goods. As a result, they remained heavily dependent on the US (Rosen, 2002, p.130, par. 2). With this dependency, the US is assured of its economic power over them.
Manuel Noriega draws his significance to the US from his regime that largely favored the social-political and economic interests of the United States during President Reagan’s administration (Wikipedia). Similarly, the Contra army was significant in stopping the flow of guns between Nicaragua and El Salvador and acting as the spies of the CIA. On the other side, Sandinistas played a significant role in encouraging factory workers and peasants to unionize and work for the sweatshops that benefited the west and took advantage of the less developed countries. Fidel Castro was influential in supporting socialism among Cubans. His demise led to extreme poverty, which triggered the international companies to establish sweatshops in Cuba (Buzzanco, 2017). Panama Canal was equally important in linking the Atlantic and Pacific oceans. Providing a new route for international trade (Rosen, 2002, p.131, par. 3). This was crucial in the survival of the apparel and textile industries.
Noriega’s extradition to France is significant in showcasing the two governments’ power serving as a warning to the states that would go against the ruling of the United States. Concerning when Noriega was a dictator of Panama, his extradition back home did not relieve its citizens. The same scenario had happened to him in Panama, where he was tried and sentenced to 40 years in jail (Wikipedia). This relates to the latest political condition in Nepal, where the BNA demanded the constitution amendment citing that it failed to consider the demands of the marginalized (Pradhan, 2021). However, in 2015, the government failed to address their political concerns.
After WWII, as the United States began to expand its trading practices to include the rest of the world, trade policy became influenced by political agendas (Rosen, 2002, p.14, par. 1). Negotiations to have U.S. clothes manufactured in Sub-Sahara Africa would transform trade by making the market more interconnected. With Africa, the U.S. would be able to create a “reciprocal set of trade and investment agreements” (Treiber, 2021par. 7). According to Rosen, increasing trade with Africa would entail new open markets for low-wage African industries, resulting in production equality between Africa and the CBI countries (Rosen, 2002, p. 205, par. 4). Africa would also be able to engage in the global economy as a result of this. The newsworthy events about these presidents is opposing the U.S. policies of bilateralism and instead championing for their independence in ruling and controlling their respective states (Pastor, 2018).The leaders agitated for this to foster liberation in their militarization.
References
Busbin, J.W. (2015). The Caribbean Basin Initiative: A Review and Analysis of its Questionable Performance to Date. Springer Link.
Buzzanco, R. (2017). Fidel Castro (1926–2016) and global solidarity. Journal of History Politics and Culture, 10(5), 274-280.
Kim, S. & Woo, H. (2021). Global fashion retailers’ responses to external and internal crises during the COVID-19 pandemic. International Journal of Interdisciplinary Research.
Lent, R. W. (2018). Future of work in the digital world: Preparing for instability and opportunity. The Career Development Quarterly, 66(3), 205-219.
Pastor, R. A. (2018). Exiting the whirlpool: US foreign policy toward Latin America and the Caribbean. Routledge.
Pradhan, T. (2021). In Nepal, civic group demand constitutional amendments to protect marginalized people and communities. International Institute for Democracy and Electoral Assistance.
Rosen, E. (2002). The globalization of the United States apparel industry: Making sweatshops. University of California Press.
Treiber, L. (2021). It’s Time for a New Economic Partnership with Africa.Centre for Strategic and International Studies.
Wikipedia (n.d). Manuel Noriega. From Wikipedia the free encyclopedia.