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For many countries, garment production is the first step of the economic ladder because it requires little capital investment and makes its profits off lowwage, lowskilled labor. And European trade officials agreed to end the quota system in 2005, but reserved the right to enact the safeguards that have just gone into effect. Operations for Hong Kongbased garment manufacturer Luen Thai Holdings Ltd., who will present a case study in supply management this fall at Wharton, says his company was prepared for the safeguards but is focusing on an eventual end to Chinese garment quotas.

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