Topic > Case Study of Factory Collapse in Bangladesh - 850

As the move to a free trade regime appeared along with competition with countries like China and Indonesia, the rapid collapse of Bangladesh's textile industry was predicted Bangladesh. However, the opposite occurred. We can highlight three main reasons to explain what happened: the first is that the cost of labor is low, even lower than that of China. Obviously the low hourly wages explain it, but not only. Investments by textile manufacturers in productivity-enhancing technologies have lowered labor costs in Bangladesh, making it one of the world's lowest-cost producers. In fact, this was an advantage during the recession because large importers increased their purchases at low prices. The second is a strong network of supporting industries. In this way, clothing manufacturers save on transportation and warehousing costs, import duties which increase their productivity.,