1.

Free trade made Bangladesh an attractive seller because Bangladesh is low-cost

producer in the world. Many companies attractive to this. This is the only reason
garment industry of Bangladesh crashed. Due to cheap labor garments remained
cheaper. Walmart saw this as an opportunity and increases its purchases.

2. The producers also gets benefits selling low cost producing product to wealthy country
like united states. Bangladesh fit well in this example. Citizens of Bangladesh also gets
benefits because they receive a living wage through the production of products from
multi-national companies. The gains outweigh the losses because the consumers and
low wage producers are better off with the outsourcing the production of textiles.

3. There are three theories that can be fit in the example of Bangladesh. First, the locally
made product is much cheaper and its cost of production is also very low. Second,
textile will be much cheaper with low hourly wage. Third, the global awareness off their
over-dependency on China made Bangladesh the best option.

4. Bangladesh has certain advantages over foreign competition. The best one is they have
low wage rate and cheap labor. They also have supporting industries which could also
benefit. Some other factors also cause decline. Infrastructure of Bangladesh made it
very difficult for its industry to grow.