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In Bangladesh and China, the cost of labor to produce clothing is more than in the United States, so it is cheaper in Bangladesh and China to make clothes. For this reason, these countries in Puerto Rico to the United States:

a) Export clothing
b) Import clothing
c) Outsource clothing production
d) Ban clothing imports

1 Answer

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Final answer:

Bangladesh and China export clothing to the United States due to their lower labor costs and competitive advantage in textiles. The U.S. has outsourced clothing production to reduce costs, but this has led to job losses domestically and ethical concerns abroad.

Step-by-step explanation:

In Bangladesh and China, due to the lower cost of labor in producing clothing compared to the United States, these countries are more competitive in the textile and garment production industry. As a result, Bangladesh and China export clothing to the United States. This dynamic is a manifestation of global trade patterns where countries specialize in the production of goods for which they have a comparative advantage. In this case, Bangladesh specializes in apparel due to its capabilities and cost advantages.

With regard to the United States, the redirection of clothing manufacturing to countries with cheaper labor is an example of outsourcing clothing production. This decision is largely influenced by the goal of reducing production costs and staying competitive in a global market. However, the collapse of the Rana Plaza garment factory in Bangladesh has highlighted the often poor and unsafe working conditions faced by garment workers.

Trade allows for economic efficiencies through specialization, but it also presents numerous challenges, including the balance of domestic job loss and consumer costs, as illustrated by the U.S. textile and apparel industry figures. Tariffs and import quotas have been implemented in an attempt to protect domestic jobs, but these measures often lead to higher pricing for consumers.

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