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Bangladesh Textile Industry

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Submitted By surbhi23
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Bangladesh economy is based mainly on the textile industry. As we all know that Bangladesh is the second largest Textile industry in the world after China. Even though Bangladesh comes under the least developed nation it has some comparative advantage which makes Bangladesh the second largest exporter in Textile. One of the most important comparative advantage is the low cost labour. In garments factories women are the main reason for low cost labour “In 2004, there were 3480 factories that employed 1.8 million workers of which 1.5 million were women”. (Khosla, 2009, para.1). These higher number of women working in textile industries are due to lack of education, easy technology, and the women have less alternative to work in any other places other than garments factories, they work at a very cheap rate other than men, women workers are reliable and they are always in fear of getting fired if they don’t do their work properly these is the main reason why the textile industry owners hire women’s. The second comparative advantage for Bangladesh is the supply chain which has contributed to boost economic development. Neighbouring factories help the textile industry with the manufacture of the product and supply on demand locally which helps the company from export and import taxes, transport, storage, outsourcing from other countries due to which the cost of the product decreases. The third competitive advantage is the western countries who imports textile from china don’t want to completely demand on china for all the products that they exports and they think of the alternative as the Bangladesh, and as the cost of labour is slowly increasing in china they are looking for the other alternative as in future there can be economic disturbance in china so as a precautions they consider Bangladesh. As Bangladesh pay workers”$38-a-month minimum wage” (Yardley, 2013,

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