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

1. From an frugal perspective, was the shift to a free cover regime in the textile effort good for Bangladesh? Employment and economic growth in Bangladesh depends upon exports of textile products which were al miserableed through a preferential quota ashes for textile market export from poor markets to rich markets. As soon as the shift to a free hatful regime appeared on with the competition with countries such as China and Indonesia the quick collapse of Bangladeshs textile manufacture has been predicted. However, the opposite occurred. We can highlight three study reasons to apologise what happened First is constancy costs are low, even lour than in China. Obviously low hourly wages rank explain it but not lonesome(prenominal). Investments by textile manufacturers in productivity-boosting technology bring down the labor costs in Bangladesh making it one of the worlds low-cost producers. Indeed, this was an advantage during the recession because big importers increa sed their purchases at low harms.Second is strong network of supporting industries. Thus, garments manufacturers save transport and terminus costs, import duties which boost their productivity. The last one is many western importers expression to diversify their supply mentions. Indeed, importers fear to become too dependent toward China. As a conclusion, the reasons why Bangladesh took advantage from the shift to a free trade regime in the textile assiduity are beyond only low wage rates. Moreover, Bangladeshs textile market may backup growing the next years because the trend to shift textile merchandise away from China may continue 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 might lose? Do the gains outweigh the losses? For Bangladesh, it has competitive advantages which are low cost and low price. For U.S., it has higher price and fewer ga rments purchased locally also, it has possible loss. Low income countries, Bangladeshs economy, Hong Kong and customers benefit when retailers in the U.S source textiles form low-wage countries. High development countries such as U.S. may lose. Yes, gains do outweigh the losses. Bangladesh will slowly develop.Economy will train improve.3. What the causes of the weak rubber eraser record of the Bangladesh garment indus taste? Do horse opera companies that import garments from Bangladesh tire any responsibility for what happened at the Rana marrow and opposite workplace accidents?There are few regulations in Bangladesh, in that respect are no rules whatsoever that cannot be bent. From this we can entrance that the government of Bangladesh does not care about the safety about these factories. The industry is characterized by low cost, fast production relying on cheap labor and production costs to compete with its competitors. Over three million workers, the legal age of whom a re young women, are employed in the Bangladesh garment industry and remain the lowest paid garment workers in the world. The lack of alternative employment options combined with widespread poverty mean these women are strained to accept jobs that are poorly paid and carried out in workplaces that take apart 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, built for other purposes, into factories, often without the infallible permits.Others have had extra floors added or have increased the workforce and machinery to takes beyond the safe capacity of the building. Many factories run throughout the day and dark 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 circuits, smooth buildin gs, inadequate escape routes and life-threatening equipment. Yes, I recall western companies should bear the responsibility. They expect cheap labor in Bangladesh, but without considering and oversight of credentials issues about these factories4. Do you think the legally stick proportionateness gestural 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 want to produce their product, they need supervise the safety forever. They must to focus on the workerssafety.5. What do you think about Walt Disneys decision not to purchase merchandise from Bangladesh? Is this an appropriate way of transaction with the problem? I think that Disneys making a erroneous belief here, withdrawing from any form of manufacturing in Bangladesh. It is of course their business and its rather probably a decent enough short term decease for them. However, its exactly the wrong decision if were going to try and solve that long term problem of poverty in Bangladesh.6. What do you think of Wal-Marts antenna 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 more like a perfunctory. Bangladeshs factories need a thorough safety inspection and refurbishment, not just discipline 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.