Global Outsourcing in the Textile Industry

In general, the outsourcing is hiring the foreign workers/company to do a particular task, as opposed to hiring domestic workers/company. Besides the outsourcing, the international purchase is an essential activity of companies. In the trend of a booming global economy, a company only focuses on its core value and hire suppliers to supply the necessary product and service. The relationship between companies are complicated and interdependent.

* Labor outsourcing is a good strategy to decrease the labor cost. But it associates with many issues. Once outsourcing is done, the MNC cannot just stay behind. The MNC should carefully supervise on the working conditions, safety, wages, working hours, gender discrimination and human rights violations. If any of these factors going wrong and leads to sweatshop conditions, it directly affect on the reputation of the MNC. If once the name or the brand is blacklisted, it is very hard to repair the damage. Therefore, the risk of outsourcing is high.

Another benefit to a company that outsource is the ability for them to scale up for a project without increasing the number of permanent staff. The capability for the company to send work to India allows them to use them for specific tasks. Once that task is complete, the job is over. They will not have all the extra workers on staff. The company is essentially hiring a

First of all, the amount of clothing in the United States that had been purchased from other countries has been increasing in great numbers. Most clothing in America was made in America until the 1970’s when clothing from outside countries started becoming more common. This happened because labor costs were much cheaper in other countries than in America, causing the products from those countries to also be much cheaper than those made in the United States and retailers were gaining better profits. The minimum wage in the United States is $7.26 per hour, while in China the average clothing factory worker earns $1.26 an hour and $0.52 in Cambodia. By 1990, of all the clothing sold in America, fifty percent were made in America- which has

Outsourcing is a method used by many corporations in which their products are manufactured in foreign countries often for cheaper labor.This method method of productions has it’s pros and cons.

Consumers want the best quality at the lowest price and the investors want to see a high profit, so to do that companies have to find the middle ground. Which means they have to find the best solution for everyone even if it means outsourcing jobs offshore because it more cost effective for the company. According to Jagdish N. Bhagwati, “employing workers at lower cost allows U.S. companies to be more efficient and productive, permitting them to create the same amount of goods with fewer resources. In turn, this lowers the price of the goods in the United States, strengthening U.S. companies and freeing workers for other tasks. The savings allows U.S. companies to stay afloat and expand in a highly competitive global market” (Otterman, 2004). Outsourcing is not always a bad, it is a change, and change is what pushes both our economy and our nation forward.

But you can also stop and think: is the clothes that I am wearing American made? Chances are, they aren’t. China and India are the leading countries in the source of textiles in America. The tag that you see on the back of your shirts, jeans, even shoes more than likely say “Made in (Foreign Country)”. Take for example, one of the most popular shoe brands in America, even the entire world, Nike. Nike shoes were made in South Korea and Taiwan during the 1970’s. They eventually expanded their business in other countries such as Indonesia, China and Vietnam. The reason why the shoe company chose to expand their

The creation of a documentary is a fine balance. One must be cognisant not to have misconstruing messages within the film, while still not trivializing those very same messages. It must strive to present its case with as little bias as possible. Moreover, that message must succeed in reaching the audience. With this in mind, Andrew Morgan succeeds in being a skilled documentary filmmaker with The True Cost; a documentary with hard hitting commercial implications, social/political implications and manages persuades the audience using facts and figures to its advantage.

Dependence on Imports - The large majority of clothes sold in US stores is made abroad by low-cost manufacturers. Tariffs, quotas, foreign exchange risk, and other import restrictions can affect the supply and cost of clothing. Purchasing typically requires long lead times, limiting a company 's ability to react quickly to fashion trends

This is easily seen in the cost induced from laws outlining the safe handling, disposal, and production that in undeveloped countries such as Bengals clothing industry doesn’t have to deal with their lax environment and labour laws create enormous savings for the average consumer. If we ever wanted to compete with the price the Bengalis clothing industry was able to produce at we would be forced to cause unrepairable damages to the environments that we live in everyday and we take our kids to play in. Some might choose to argue that damage to the environment anywhere in the world is damage to the space we all live in, but in many undeveloped or developing countries they have already committed unrepairable damages to many rivers and lakes such as those in China. Which quickly leads to the question if someone gave you a dump to use would you leave the garbage in your own house? These are just some of the reasons environmentally why outsourcing provides great advantages for

When companies outsource the manufacturing jobs to foreign countries, the US will take a direct hit of the blow. Millions of workers will lose their jobs to the foreign country and the United States economy will suffer losses as well. According to AmericanProgress.org “Manufacturing employment collapsed from a high of 19.5million workers in June 1979 to 11.5 workers in December 2009, a drop of 8 million workers over 30 years.” That alone is a huge number considering that manufacturing jobs were the driving force of the United State economy for decades. Balagny Clothing Company will be just like other

Labor costs in the United States are much higher than in many parts of the world. Consequently, the costs of production for labor-intensive manufacturing can be significantly reduced by moving factories overseas mainly to third world countries this is a common practice of Nike who outsource there manufacturing to other companies in countries such as Thailand and Indonesia.[ ]

In the past decade the topic of outsourcing has become a heavily debated subject on if it is ethically correct to outsourcing jobs to foreign countries. Outsourcing has become more and more an option for many companies and not just an economic fad. The decision to outsource is a difficult one for any company to make because there are many advantages and disadvantages to consider. The decision to outsource affects many people, communities, and industries so if a corporation decides to outsource they must consider how it will affect human dignity, the common good of the economy, and subsidiary.

Companies tend to outsource in logistics area. This includes complete cycle of material flow; from the purchase and internal control of production materials to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product. Pepe Jeans outsourced in logistics area. Even though the company was successful and profitable doing so, this resulted in inefficient delivery time and unhappy retailers due to the restrictions of the outsourced company asking for six month lead time in ordering products. Now company faced with changing the way the production flow works in order to respond the retailers and independent agents’ complaints. As it indicates at themanager.org companies that rush overseas in search of low production costs may be walking into a strategic trap. It's easy to underestimate the hidden costs in long supply chains and their impact on profitability. Customers in outsourcing transactions face both direct and indirect risks. If your outsourcing vendor fails to perform, you may suffer direct damages in the form of out-of-pocket expenses incurred to perform the function yourself or hire another vendor, and lowered profits caused by lost business and harm to your reputation. Strategically, a main goal of outsourcing has always been to shift risk from the customer to the vendor. But while the risks arising from implementing new technologies and labor markets can be shifted in this way, CIOs know that not

Even though a company must invest a large amount of money to get started in a foreign country, this can have the long-term effect of lowering costs. by take advantage of large tax benefits. The company can also pay less for labour and other goods that may be needed for the production of products. This lowers the overhead for the company and helps it operate more profitably