Bolivia Global Issue

2. Write a summary for the case study given

According to the Global Policy Forum (GPF), stated that Bolivia having issue with their cost of manufacturing. This is because they have to compete with other country such as China because of cheaper raw material than Bolivia raw material. Because China had advantages in the fields of production, Bolivia was forced to sell the mineral and timber to save costs and in return Bolivia have to confront with trade deficit occur with China when didn’t get return of capital. Bolivia fended off huge dumps of used clothing from the United States by raising tariffs in 2009. But new Bolivian craftspeople must grapple with competition from foreign products, most from China. China supplanted the United States as Bolivia’s leading supplier. Due to political differences, the United States, starting in 2009, ended trade preferences allowing Bolivians to export tariff-free to the US, reports Carlos Valdez for the Associated Press. Bolivia tried to export more to Venezuela but that did not work out. Imported textiles, clothes and shoes are up to 70 percent cheaper than those produced in Bolivia, where labor is still mostly conducted by hand and at a smaller scale. Customers make price a priority. Adding to Bolivia’s challenges is a flood of contraband. Valdez argues, “Although rich in raw material and skilled craftspeople, this poor, landlocked South American nation of 10 million can barely compete globally in anything that isn't dug out of the earth or grown in a field.” With the current situation occur in Bolivia, many big manufacturing company such as AMETEX have to suspend their production to cover their liability. Janeth Coffield, The president of an association of small and medium businesses in the eastern city of Santa Cruz is skeptical the crisis will end and hope for used clothing trade will be lost.