When china's clothing industry expands, the increase in world supply lowers the world price of clothing. consider the effects this has on both an importer and an exporter of clothing. suppose the united states is an importer of clothing?

The effect that China would cause is a worldwide fall in the price of clothing, and if the United States is importing clothing, that is, buying clothes from other countries (for example, China), this is only beneficial because cheaper foreign clothing can be purchased. However, for the companies that produce and sell clothes in the United States, and the world, this is bad, because the national product is not bought and also the costs must be lowered. A country that imports a lot of clothing can be seen benefiting at the level of stores and small businesses; but domestic garment factories, and clothing stores, see lost profits and stagnant products, causing a crisis in the US clothing industry, in this particular example.