The Garment and Textile Industry in Bangladesh Essay

The race to the bottom is where the cheapest prices win. They choose to set up factories in Bangladesh in lower their prices. The workers in Bangladesh will work for less than in other countries.

The Indian textiles chart showed how India used machines to produce greater yarn and cloth amounts in 1914 as compared to the production in 1884. As well it demonstrated how the amount of people using machine made textiles had greatly increased opposed to hand made textiles (Doc 1). In 1916 Radhakamal Mukerjee, an Indian economist, explains how that handwoven textiles cannot keep up with the machine made textiles, and therefore is on a decline (Doc 6). This identifies how India is moving towards

• The enormous surplus of labor in China imperils workers worldwide as international competition puts incessant downward pressure on wages and working conditions, leading the apparel and textile industries to favor the cheapest and most Draconian producers.

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.

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.

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,

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

From 2005 the liberalization textiles and clothing industry, the exports of this industry increased from 480 $ billion to 709 $ billion until 2012. (WTO.2005, 2013) The textiles and clothing industry accounts for a 4 per cent share in global merchandise exports. (The ILO, 2014) Garment industry has particularly characteristics, which selectivity and pertinence at production and market. (Adhikari, R. &Yamamoto, Y. 2007) Garment industry provides a lower investment cost and low skill labor in developed and developing countries. This industry has low barrier entry, so that clothing industry suitable for developing countries. But free trade and low barrier make it possible to adapt to rapidly changing market conditions. Therefore, the clothing industry characterize is high intensity of competition. This industry is the most protected in the global economy of all manufacturing industries, in both developed and developing countries. (Nordås, H. 2004)

Bangladesh is a moderate Islamic country with about 90.2 percent Muslims, 8.2 percent Hindus, and Christians and other minorities comprising the rest 2 percent.

Globalisation is not a necessary condition for poverty reduction, but Bangladesh is a special case because it has been

One of the major advantage for any industry in Bangladesh is lower cost of land in urban areas. This helps all the major telecommunication firms in our country to set up offices inside the main city.

Readymade Garment (RMG) Industry occupies a dominant position in the export-manufacturing sector of Bangladesh. The advent of the RMG sector happened during the early 80s in Bangladesh. Since then, due to supportive policies of the Government of Bangladesh (GoB), this industry has experienced a significant growth. In 1988, the export-oriented RMG sector overtook the traditionally dominant jute sector in terms of gross export accruals. And since then this sector has continued to consolidate it predominant position in the export basket of Bangladesh. According to data of 2003-2004 financial year, the export earnings of the RMG sector was 5686.09 million US dollars,

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

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

Bangladesh is a small South Asian country that boarders the Bay of Bengal and India. Bangladesh is a developing nation that has experienced steady economic growth over a sustained period of time. However, economic growth alone does not make a nation fully developed. Using W.W. Rostow’s 5 stages of development1, the economy of Bangladesh will be analyzed and compared to the economy of the United States of America (USA). The development of Bangladesh will be determined using relevant economic and social data found in the CIA World Fact Book and other sources.