This graph depicts the revenue of textile mills in the United States. Prior to 1998, revenue was decreasing, and post 1998, revenue is still decreasing. This is mainly due to increase in imported goods. Labor cost is simply cheaper in developing nations.This fact, however, is contrary to what economists believed in 1998.
[An] increase in the economy at the end of 1998 gives a the North American textile industry a chance to gain some of the buisness they’re losing to foreign imports back.
Clearly, the increase in the U.S. economy had no effect on the success of the textile industry.
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