Disaster in Bangladesh: The Collapse of the Rana Plaza Building Essay

1. From an economic perspective, was the excite to a vindicate trade regime in the fabric attention good for Bangladesh? Employment and economic growth in Bangladesh depends upon exports of textile products which were allowed by dint of a preferential quota system for textile market export from suffering markets to rich markets. As soon as the throw to a free trade regime appe atomic number 18d along with the competition with countries such as china and Ind unitysia the quick collapse of Bangladeshs textile patience has been predicted. However, the opposite occurred. We give the bounce highlight three major reasons to explain what happened First is labor be are low, even lower than in China. Obviously low hourly wages rates explain it but non only. Investments by textile manufacturers in productivity-boosting technology lowered the labor appeals in Bangladesh devising it one of the worlds low-cost producers. Indeed, this was an advantage during the recession because p lentiful importers increased their corrupts at low prices.Second is strong network of sustenance industries. Thus, turns manufacturers save transport and storage costs, import duties which boost their productivity. The last one is many western importers looking to diversify their supply sources. Indeed, importers fear to call off on too dependent toward China. As a conclusion, the reasons why Bangladesh took advantage from the shift to a free trade regime in the textile industry are beyond only low wage rates. Moreover, Bangladeshs textile market may keep growing the next years because the bm to shift textile labor away from China may preserve as the wage rates are increasing fast.2. Economically who benefits when retailers in Europe and the United States source textiles from low-wage countries such as Bangladesh? Who readiness drowse off? Do the gains outweigh the losses? For Bangladesh, it has competitive advantages which are low cost and low price. For U.S., it has high er price and fewer fit outs purchased locally also, it has possible loss. clinical depression income countries, Bangladeshs economy, Hong Kong and customers benefit when retailers in the U.S source textiles form low-wage countries. High outgrowth countries such as U.S. may lose. Yes, gains do outweigh the losses. Bangladesh allow slow develop.Economy will get improve.3. What the causes of the weak guard duty record of the Bangladesh garment industry? Do Western companies that import garments from Bangladesh bear any responsibleness for what happened at the Rana Plaza and other workplace accidents?There are few regulations in Bangladesh, there are no rules whatsoever that cannot be bent. From this we can see that the government of Bangladesh does not care rough the safety device about these factories. The industry is characterized by low cost, fast merchandise relying on cheap labor and production costs to compete with its competitors. over three million workers, the major ity of whom are young women, are active in the Bangladesh garment industry and remain the lowest give garment workers in the world. The lack of alternative employment options combined with widespread impoverishment mean these women are forced to accept jobs that are poorly paid and carried out in workplaces that fail to adhere to the most basic standards of health and safety. The rapid expansion of the industry has led to the conversion of many buildings, build for other purposes, into factories, often without the required permits.Others lay down had extra floors added or have increased the workforce and machinery to levels beyond the safe capacity of the building. Many factories hasten throughout the day and night in order to meet production targets. The establishment of factories, or the conversions of other buildings into garment factories, has often been done as quickly and as cheaply as possible, resulting in widespread safety problems including faulty electrical circuit s, unstable buildings, inadequate escape routes and unsafe equipment. Yes, I find western companies should bear the responsibility. They need cheap labor in Bangladesh, but without considering and oversight of security issues about these factories4. Do you think the de jure binding agreement signed by H&M, Zara, Tesco and others will make a difference? Does it go far enough? What else might be done? Yes, I think the legally binding agreement can improve the safety level of factories in Bangladesh. But, I think it is not enough, Five years agreement it is not enough. If they still loss to produce their product, they need supervise the safety forever. They must to focus on the workers safety.5. What do you think about Walt Disneys decision not to purchase merchandise from Bangladesh? Is this an appropriate way of dealing with the problem? I think that Disneys making a mistake here, withdrawing from any form of manufacturing in Bangladesh. It is of course their business and its quite probably a fair enough short experimental condition move for them. However, its exactly the handle decision if were going to try and solve that long term problem of poverty in Bangladesh.6. What do you think of Wal-Marts accession to this problem? Is the company doing enough? What else could it do? I do not like the way that Wal-Marts approach to this problem. Wal-Marts approach is to a greater extent like a perfunctory. Bangladeshs factories need a thorough safety inspection and refurbishment, not just set up an independent call center for garment workers to report unsafe working conditions. It is not enough. At least, Wal-Mart needs to sign the legally binding agreement like H&M, Zara, Tesco and others.