Disaster in Bangladesh: The Collapse of the Rana Plaza Building Case Solution
- The first and the foremost are the textile manufacturers in Bangladesh itself; they can increases their revenues significantly because of high demand from the foreign nationals.
- Work groups in Bangladesh, who could gain significant employment opportunities, which in the other case could not be possible.
- Western Retailers could gain significantly because they could meet the demands of their nationals in the least cost possible, with relation to apparel.
- The consumers of the Western Countries could be able to meet their demands related to clothing in the least cost, which certainly increases their disposable income.
Since it can be seen that the major source of earning for Bangladesh is related to the export of its textile related products; the company has the very little employment opportunities for its nationals. Moreover, the pay scale is also very low, which obviously concludes the fact that with this involvement from Western Retailers, the country as well as its nationals could gain significantly.
As opposed to the economic beneficiaries in this scenario, the losers include developed countries, their overall employment, as well as the economy is hurt. This is because of outsourcing, through which they lose their jobs, which include China as well. Overall, it can be concluded that the benefits or gains outweigh the losses, which could also be summarized from the economic theory of free trade policy. (Europeon, 2014).
1. What the causes of the weak safety records of the Bangladesh garment industry?
It can obviously be analyzed how the working conditions of the production facilities in the country would be due to the increased demand for Bangladesh’s textile related products and the entire dependency of the country on its export. Its exports are the sole provider of profitability to the country because of low cost labor as well as production. , . Majority of the country’s population is employed in the garment industries of Bangladesh, which also includes approximately 3 million underpaid young women. The lowest cost for workers illustrates the fact that the working conditions as well as the environment would also be very poor; there are simply no safety standards for poor employees that work 12 hours on each of the seven days of the week. The real responsibility for such an issue lies with Bangladesh’s government, in the time period of rapid expansion, the old eequipmentalso require replacement with the new ones, which is also a burden for the government.
The ultimate tragedy, which occurred at Rana Plaza of Sohel Rana, is due to the lack of responsibility of the government, policy makers, as well as other regulatory bodies, they should try to protect human rights against several abuses. Moreover, on the other hand, Western Companies are not fully rather partially responsible of this event because they did not even bother to analyze the real cause of cheap labor as well as low cost products and kept on increasing demands for their clothing in large amounts with small consideration.
2. Legally binding agreement signed by H&M, Zara, Tesco and others
Bangladesh suffered some major issues in the development of its economy due to the event of collapse of Rana Plaza. Thus, it has been analyzed that the economy had fallen and decreased its importance of exporting the garments into other western countries. The event also illustrates that the country would drive towards price collapse in major manufacturing concerns.
Thus, its shows that in order to handle the situation, an agreement was signed by western parties in order to cover the loss incurred through the collapse of the building and damage in the sales of exports. These parties included H & M, Zara, Tesco and others, who provided security to develop the nation under receiving the exports provided by the country and to improve gross domestic product of the country……………….
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