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  • Essay / Bangladesh Textile Industry Case Study - 705

    1. From an economic point of view, has the move to a free trade regime in the textile industry been beneficial for Bangladesh? The move to a free trade regime in the textile industry has been beneficial for Bangladesh. Bangladesh prospered when other economies were not doing so well. The textile industry has grown significantly, making it one of the main reasons why the economy has continued to grow. Bringing in more and more billions and billions through exports between 2006 and 2012, as mentioned in the book.2. Economically, who benefits from European and American retailers who source textiles from low-wage countries like Bangladesh? Who could lose? Do the gains exceed the losses? Economically, low-wage countries and the country in which they do business. What are the causes of the poor safety record of Bangladesh's textile industry? Do Western companies that import clothes from Bangladesh bear any responsibility for what happened at Rana Plaza and other workplace accidents? The causes of the poor safety record of Bangladesh's textile industry are due to Western companies importing garments from Bangladesh and the government. The government could use its power to improve conditions in Bangladesh, but instead it sits idly by and does nothing. Additionally, Western and other companies that choose to do business with industries like in Bangladesh seek to manufacture their products effectively and efficiently. Therefore, poor working conditions are to be expected because these companies must know the situation these industries are in because their country is poor. Nonetheless, Western companies bear responsibility for what happened at Rana Plaza as well as other workplaces. What do you think of Walt Disney's decision not to purchase merchandise from Bangladesh? Is this an appropriate way to resolve the problem? Walt Disney has the right not to do business with Bangladesh. However, I don't think their way of dealing with the problem is appropriate, because it doesn't help solve it. Walt Disney must have known that working conditions were substandard, but they did business with Bangladesh anyway. Therefore, their decision to cut loose and not help solve the problem makes them look bad..6. What do you think of Walmart's approach to this problem? Is the company doing enough? What else could he do? I applaud Walmart for not giving up on Bangladesh like Walt Disney did. So I think their approach to the problem is good. By Walmart, hiring inspectors helps improve working conditions and ensure the safety of factory workers. Walmart also accepted the fact that the value of its products could increase due to the situation Bangladesh finds itself in, such as renovations. The book mentions that the main reason Walmart didn't want to sign the deal was the fact that it was legally binding, so I think Walmart could just give Bangladesh whatever amount they want without signing a deal to