Case Study : F Shoring Of Garment Industry

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Case Study 1- BMGT Naveen Khambum
Key facts The off shoring of garment industry has steadily increased over the past 30 years as the retailers in US and Europe seek to offer a wide selection of seasonal styles and garment varieties. According to a Survey conducted by an advocacy group, today less than 5% of the apparel sold in US was made in the country in contrast to 1960 which was 95%. Availability of Plentiful low cost labor, less restrictive labor laws and nonexistent unions has led many US and European retailers to outsourcing. This lead to race to establish more low-cost garment manufacturing factories in many countries like China, Cambodia, Vietnam, Bangladesh and India. Bangladesh manufacturers raced to build garment factories without much concern to the codes or to the plight of the workers. Bangladesh became the second largest exporter of garments, second only to China. Serious Concerns have been raised over safety violations, poor working conditions and the building that fall woefully short of building standards. A $ 20 billion garment industry by name “Rana Plaza” owned by Sohel Rana who is also a local politician with considerable clout, collapsed on April 24, 2013 killing 1132 young Bangladeshi women and men and injuring 2500. Many were missing arms and legs, are paralyzed, and are suffering from many head injuries. Factory owners in Bangladesh were feeling considerable financial pressure for the work to be completed. Political unrest resulted in

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