When the guns fell silent
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| Cambodians are still busily sewing clothing for the West. Enjoy shopping while it lasts. (Photo by: Reuters) |
By Doron Tsur
Ha'aretz (Israel)
Social revolutions in Asia changed global manufacturing markets once, and it's happening again: No more cheap clothes for the West
Cotton prices have been soaring for months. There are a number of reasons for this. One is unusual weather patterns from the United States to Pakistan. Another is spiking demand in China, and a third is the decline of the dollar. All the above have jacked up commodity prices and triggered a flurry of speculation by hedge funds.
The increase in the price of cotton, the primary raw material of the textile industry, in turn puts pressure on clothing prices. Consumer prices are rising here and there, but so far it's been in the margins, incremental increases on certain. No big economic story there, you say.
