Rise of Bangladesh’s Textile Trade Essay examples

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.

Create a benchmark for all the subsidiary companies to afford a safe working environment in other countries such as Bangladesh and Vietnam

A competitive market is what an economy should strive for. It maximizes total welfare and benefits all parties. The textile industry itself is very competitive, so that it is impossible for individual firms to generate additional economic profits in the long run. Some companies would therefore find it very beneficial to coordinate their actions. For example they could reduce the quantity supplied, so that the market price would rise artificially. In the thread market there were two kinds of agreements

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

EAM Maliban Textile (Pvt) Ltd is a leading garment manufacturing and wet processing business in Sri Lanka and known as most advanced among South Asia. It was established in 1974 and now it has expanded their business to Jordan as well. It produces more than 20 million woven garments per year with a work force of 8,000 employees spread across 12 manufacturing units. With its cutting-edge innovations and processes, it is offering quality manufacturing and wet processing while complying with social and environmental standards. ()

In order to get our information on the innovation and impact of the textile mills, as a group we gathered information from various places and did extensive research on our topic. We found a great quantity of information by visiting the Upland Public Library, surfing numerous websites, collecting many primary interviews,

Feenstra talks about the implications of imposing trade deals or tariffs that could negatively affect a partner and how that could alter relationships against the interest of America. Moreover, he discusses the fact that increased isolationism from the free trade world could impede on the development of countries who export goods to the United States as they attempt to grow and stabilize their developing economies. Feenstra quotes a study from 2009 saying, “developing countries lose $8 billion from the quotas and tariffs applied to textiles by the industrial countries” increasing foreign deadweight loss, which again decreases overall world economy efficiency (Feenstra 167). The American economy is greatly involved and vital to the world economy in this 21st century environment and the world economy, and especially developing nations, would be greatly hindered by American retreatment from the world stage. The Antebellum strategy used for the cotton industry in the 19th century is not applicable in today’s globalized world and the magnitude of the broader American economy is not in need of specialized assistance as it did when it was a developing

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

For example, the economic and trade development between the United States and ASEAN will first boost the economic development of ASEAN. With the continuous strengthening of economic and trade cooperation between China and ASEAN, China's economy will also develop continuously. Chinese enterprises are now actively participating in the process of economic globalization through outward FDI. In these countries that have signed free trade agreements with the United States, Chinese enterprises can make good use of favorable local resources and other factors of production to make investments and continuously upgrade their businesses. Own capital and competitiveness, and improve the position of Chinese enterprises in the world.

I think it also works to undo the notions that China was stealing away all our jobs in the apparel arena, because despite the complex protectionist measures taken, America still lost lots of jobs in the textile industry. The author points out that this is because of technology, and that when it really comes down to it, China is losing their textile jobs at a rate faster than the U.S. did (142). She also goes over some of the unintended consequences of the measures such as increased material costs as a result of the increased import barrier (142). She also suggests in this section as an alternative to erecting trade barriers, to instead compensate workers of the losing industries, known as the compensation principle (151). Lastly, with the lift of the measures and quotas by 2005, there will be a new surge in Chinese goods to America, as illustrated in figure 9.1, page 167. China’s percent increase after release from the quotas will measure some 900%.

I don't think boycotting garments made in Bangladesh will solve the problem. A boycott of garments from Bangladesh would increase unemployment, considering the dependency of the country, and its people in garment manufacturing industry. This could result in an increase in the poverty level of the country. Bearing in mind all the stakeholders, it may be advisable to increase the safety, hygienic and compliance standards of these factories avoid disasters like the fire accident.

The textile industry has undergone enormous change in the past ten years. Global trade in textiles was once regulated by high tariffs and a complex system of import quotes. Not anymore. Textiles used to be produced predominantly in the U.S., Europe and Japan. Not anymore. Textile mills used to dictate fashion, everything from fabric construction to fiber content. Not anymore.

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

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

Further government needs to formulate a comprehensive policy to salvage the textile industry because exporters and manufacturers will not benefit from GSP Plus trade facility if facing the problems like chronic energy shortages, high cost of production, , worsening law and order and uncompetitiveness in international markets.