The Garment and Textile Industry in Bangladesh Essay

967 Words Dec 3rd, 2014 4 Pages
Case 3
Professor
September 3, 2014

Bangladesh is a south Asian country and has an approximate population reaching 164 million. The manufacturing industry is what Bangladesh is known for. That industry also accounted for almost 12% of GDP in 2009 and 2010 with employing over four million people (The Bangladesh Accord Foundation, 2014). The labor force is made up of young, urbanizing, mainly women. Bangladesh accounts for approximately 78% total exports (The Bangladesh Accord Foundation, 2014), which is second to China.
The cost is kept low with labor and the production. This helps competing in the export trading world. “I am telling, in textile nobody can beat Bangladesh in price and quality”
…show more content…
Bilateral agreements with 28 countries and Generalized System of Preferences (GSP) of the EU are key reasons for Bangladesh RMG products having access to global markets (Board of Investment Bangladesh, 2012).
Best alternative
The best alternative would be improve the infrastructure, and increase the price of exporting, but still lower than any other country. Bangladesh would make a larger profit and could put more money on fixed and creating the ports and roads which in return will make it easier for the buying countries. If the prices continue to stay low, the country may not have enough money for infrastructure. Bangladesh would have more money to help with the electricity outages which can also help business buy producing more and exporting more.
Implementation plan The implementation would be analyzing the competitions textile export prices, and then increase the price to keep it right below the competition. This will allow Bangladesh to gain more profit and place that into infrastructure. They would also want to focus on the electricity so labor improves and more textiles can be made. This plan will allow for easier flowing importing and most importantly exporting. This will also create a better working environment in the textile mills and will create more production.

Appendix A

Appendix B

Employment in RMG Sector
Year
No. of