Please review below and respond( no more then 4 sentences):
Why was the shift to a free trade regime in the textile industry good for Bangladesh?
Free trade is a trade that has no rules, the government is not involved in the decisions of the companies, whether for minimum wages, the working conditions for employees, or in the prices that the owners themselves decide to sell their merchandise. When Bangladesh took this regimen, they do not have a rule for minimum wages. Let us remember that the payroll payment is one of the highest expenses of a company, this makes the payroll payment very low and helps the price of the product also decreases. If Bangladesh had the fair-trade system that promotes fair wage payment and treatment to achieve inequality in third world countries, the prices of products would increase because the labor force would also increase, in this way they could not give the low prices that until now they have managed to have.
Therefore, it is convenient for companies to have free trade to be able to provide cheaper products to their buyers. But the reality is, that all countries should have fair trade, where countries like the United States, because the dollar is their currency they take advantage of third-world countries where monthly wages are $60.
Review and respond 4 sentences.
How secure is Bangladeshs textile industry from foreign competition? What factors could ultimately lead to a decline?
Bangladesh is pretty secure in reference to foreign competition. Bangladesh is attractive due to many factors, being, Low labor costs which leads to low costs garments, more opportunity for Western importers to diversify their supply sources because they don’t want to rely solely on China and become dependent to it, because that will only cause problems down the road. One of the main reasons that can eventually lead to a decline in success would be that it does not have as much resources since the country itself is not as wealthy as other countries that can afford it.
Read the case and respond to question 3 ( 5 sentences).
