Impact of Garment Industries on the Economy of Bangladesh

Bangladesh are not nearly as strong, and their economic strengths pale in comparison to Australia’s. Australia are blessed in regards to resources and they are geographically close to one of the largest growing regions of the world, Asia. Australia’s economy is also incredibly resilient, Australia being one of only three countries not to record a period of economic contraction since data begun being recorded in 1991. The only real economic strength of Bangladesh, on the other hand, is that countries like China, Japan and Australia are beginning to outsource labor to Bangladesh, and this gives work to Bangladeshi citizens and brings money into the

The relevance of this book can be measured by its ability to speak to the everyday individual, who may or may not know anything about economics, and plant the seed toward global economic education. It provides a keen social awareness to people who may or may not ordinarily care about international economics and can have an eye-opening effect toward what really happens in the textile industry.

Esquel, one of the leading cotton-shirt-manufacturers in the world came from China and it supplies lots of clothing brand such as Banana Republic, Tommy Hilfiger, Hugo Boss, Brooks Brothers, Abercrombie and Fitch, Nike, Nordstrom and Lands’ End, in addition to private companies (Plunkett Research, Ltd.). However, due to the high demand of the US apparel stores for Chinese products, the low cost, which was the main reason why raw materials are being purchased from China, have increased. China’s competition is huge, with Vietnam, the Philippines, Malaysia and Sri Lanka also producing material at cheap prices (Plunkett Research, Ltd.). The US apparel stores can instead purchase from these other Asian countries. It is hard to determine the exact number of suppliers in this industry; but, in general, majority of them are in Asian countries that can provide low-cost raw materials to US-based apparel stores. Therefore, the US apparel stores may acquire higher net profi

The introductory of the documentary examines the fabric mills of Bangladesh. It is very competitive in the international market place to find low cost labor; when merchandise manufactured in another country is imported these country put on a duty rate. Apparel companies contemplating low cost labor,

Although the Chinese apparel manufacturers would lose profitability due to rising cotton prices and competition from emerging countries, they stand to gain the most from the removal of U.S. quotas and tariffs. According to the author, in 2007, 95% of the 20 billion garments Americans made were purchased overseas. Due to U.S. trade barriers, China’s share of the U.S. apparel import was only 30%. Once these barriers were removed, Chinese apparel would flood the American market due to their low cost and dominance in garment manufacturing. Experts predict that China could eventually supply 85% of U.S. apparel. As they increase their market share in the

Doug Saunders’ article, “Are garment workers’ deaths on our hands? No” is about the sufferings that the Bangladesh garment workers have to experience in the hopes of meeting consumer needs in Europe and North America. According to the tone of the writer, this article presents an argument on ethical concern about the existing business relationship between the developed and the developing countries. Developed countries such as Europe and North America go for cheap markets in countries like Bangladesh but in the process they affect the welfare of these countries. Saunders uses the fire outbreak and a collapsed eight-storey building, as evidence for the suffering of Bangladesh workers. Conversely, Saunders claims that clothing agreements by developed

In Bangladesh there have been many problems due to the small market and their extremely low cost. So for american companies like Walmart, H&M, Tommy Hilfiger,etc bangladesh is a goldmine because they produce quality work and at a very cost. Although with their low cost there is a high demand for their goods, which rushes the production process resulting in injury.

Fifty years ago almost all clothes sold in the U.S. were made here. Now almost 98% of the clothes sold here are made in other countries. For big retailers like Walmart, and Forever 21 they are able to sell clothes at low prices due to clothes being produced in other nation “where labor and other costs are less expensive,” as stated in “The Real Cost of Fashion.” How this works? Well, an example from “The Real Cost of Fashion.” Says, “For example, it costs $3.72 to manufacture a denim shirt in Bangladesh. To make that same shirt in the U.S. costs $13.22. Lower costs mean U.S. stores can sell clothes for less and still make a profit. For U.S. shoppers, it means more clothes in their closets and more money in their wallets to buy other things.” But three years ago, a tragedy occurred in a building in Bangladesh. 1,127 workers died while about 2,500 workers were injured when the building collapsed. This building contained five factories which made clothes to sell in the U.S. and Europe. Officials then discovered the owner of the building illegally added more floors and let the companies place heavy gear that the building wasn’t sturdy enough to support. According to “The Real Cost of Fashion,” Bangladesh’s government “temporarily closed about 20 factories for safety violations. It also announced plans to raise the country’s minimum wage. Bangladesh has some of the lowest-paid workers in the world.” They get paid less than $2 day. It

Everyday, millions of consumers in the United States contribute to the harsh treatment, under paid, and sexual abuse of factory workers all over the world. The garment industry, one of the largest in the world, generates over 3 trillion dollars a year yet the average monthly wage is 21 dollars a month, 80% of whom are women, and including children ages 5 to 14. While most apparel used to be manufactured in the United States, in the past decade a majority of manufacturers have moved operations overseas due to loose regulations according to the huffington post (Badal). The current trend of fast fashion comes at a much greater cost than we are all aware of, The True Cost, a documentary by Andrew Morgan highlights fashions “unadvertised sins” such as unregulated production, toxic garment dyes harmful to both workers and the environment, and attempts by the factory workers to form unions that end in violence (Wilson).

A century ago, the textile and clothing industry was a major part of the U.S. economy, but that is no longer the case. Faced with foreign competitors that can produce quality goods at low cost, many U.S. firms have found it increasingly difficult to produce and sell textiles and clothing at a profit. As a result, they have laid off their workers and shut down their factories. Today, most of the textiles and clothing that Americans consume is imported. The United States and China are economically connected through importing and exporting. Due to the United States being in a large deficit with China, we must remain in good terms with China. China has a very fast growing economy due to their advances in technology and other devices. The benefits are on a global perspective, globalization means more job opportunities. China has cheap labor, which allows them to produce at a lower cost. The story of the textile industry raises important questions for economic policy: How does international trade affect economic well-being? Who gains and who loses from free trade among countries, and how do the gains compare to the losses? A low domestic price indicates that the country or in this case China, has a comparative advantage in producing the good and that the country will become an exporter. A high domestic price indicates that the rest of the world has a comparative advantage in producing the good and that the country will become an importer. China is second to Canada as the United

According to the data, the total volume of textiles exported from China has started a continuous rapid growth since 2001 (the year of China’s accession to the WTO) as shown in the first graph above, which roughly

The overall picture of rising average yields and rising production in Bangladesh has tended to hide the evidence of declining productivity of the sector. Farmers often claim that yields have been declining and that higher fertilizer applications are necessary to maintain yields. Most available data is on the rice production. (Pagiola, 1995)

From its humble beginning, it has been developed into a huge corporation of infallible quality and excellent service. It highly values its consumers as unique individuals and always ensures quality merchandise to suit the needs of each distinct consumer group. It works hard to preserve the environment and culture of Bangladesh, side by side, plays an outstanding role to develop the country economically advanced.

market with low cost mass produced apparel. Exports from India and China have grown over 100% with the expiration of the MFA whilst other countries such Sri Lanka and Pakistan have seen a loss of market share in terms of volume traded. (Christoph, Alfons Hernández, & Daan, 2005). MAS Holdings Ltd (MAS) one of the largest apparel manufacturers is faced with this intense global competition and a constellation of other issues. The macro-economic

Faruqui, M. (2014, July). Nobody can beat Bangladesh in price and quality. Retrieved from http://www.textiletoday.com.bd/magazine/873