The Gap is a world leader in the clothing industry. The company has successfully created an image of fashionable, affordable clothing to become one of the most profitable and fastest growing clothing retailers. Over the last five years, The Gap has doubled in size, and along with its other brand names, Old Navy and Banana Republic in the USA, the company opens 120-150 new shops each year. But how has The Gap managed to stay above the rest, and how has it adjusted to the changing pattern of global trade? At the same time, how has this affected the lives of people who make Gap products?

Visit The Gap's website, www.gapinc.com for more detailed information about the company. In particular, check out the 'Global Manufacturing' page of the website.

Cotton plants grow well in warm, humid climates. Transnational clothing companies have the flexibility to buy the cotton for their clothing from many countries.

� John Spaull/Panos Pictures.

A Global Chain of Production Production of some of The Gap clothes is carried out within the USA, right through the production chain from using cotton grown by US farmers, sewing and assembling the clothes in US factories and finally selling the finished product in US shops. But for other products, 'made in the USA' may not be quite as it seems. Like many other transnational companies, The Gap is now taking advantage of new opportunities in global manufacturing for some of its products to make the company more efficient and profitable. To find out how this global chain of production works

Like other transnational companies, there are influences on The Gap's decisions for where their clothes are made. Roll over the icons to find out.

Export Processing Zones
Manufacturing of The Gap clothing is sometimes carried out in 'export processing zones' in developing countries. These industrial areas offer transnational companies the advantage of low or no taxes, and cheap labour to put together the finished items ready for export. Export processing zones can offer benefits to the country where they are located. By creating jobs, local businesses can increase profits as people spend their wages. Local people can also learn new skills and expertise from the companies that use the export processing zones to move into skilled jobs with better wages.

Today, China has over 100 export processing zones, employing 18 million people.Click on the photo to read what Raquel, a teenage worker in a clothes factory in an export processing zone in the Philippines had to say

� Chris Stowers/Panos Pictures.

On the other hand, transnational companies using export processing zones have come under heavy criticism from human rights groups by using some factories that are 'sweatshops'. Export processing zones do not necessarily follow the labour laws of the host country. Instead, workers are often on temporary contracts so they can be fired easily and unions are not allowed. To keep costs low and competitive, working conditions in these factories are sometimes harsh.

Sweat or No Sweat?
In 1995, anti-sweatshop pressure groups brought a billion dollar lawsuit against The Gap and 17 other companies for appalling working conditions in factories on Saipan island, a tax-free US territory in the Pacific Ocean. However, the court case is not yet settled. The Gap believes that the allegations against the company are false, and they are still defending themselves in court. Visit these websites if you want to find out what these pressure groups say on the issue of sweatshops, including the alleged practices of individual companies:
www.cleanclothes.org and choose 'companies' from the menu
www.globalexchange.org/economy/corporations

A Code of Conduct
To promote a decent working environment for the people who make the company's clothes, The Gap put together a set of rules for all their suppliers called the 'code of vendor conduct'. The Gap now employs 80 people to interview workers and managers in these factories and to inspect factory conditions. But it is a difficult job. Firstly, the factories that put together the final garments are independent of the company. Secondly, these factories often produce for more than just The Gap, which makes it difficult for the company to impose its own rules. Nevertheless, the 'code of vendor conduct' highlights the need for companies to take responsibility for every stage of production of their products. In this way, globalisation can be managed to protect its possible victims.