Why is Bangladesh internationally competitive in textile and clothing manufacture
Bangladesh has become internationally competitive in textile and clothing manufacture due to several factors:
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Low Labor Costs: One of the primary reasons for Bangladesh's competitiveness in textile and clothing manufacturing is the low labor costs. The country has a large population with a relatively low cost of living, which allows for cheaper labor compared to other countries.
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Strategic Location: Bangladesh's location is strategic as it is situated between two large markets, India and China. This allows for easy access to raw materials and transportation.
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Government Policies: The Bangladeshi government has implemented various policies to attract foreign investment in the textile and clothing industry. The government has also provided various incentives, such as tax exemptions, to attract foreign investors.
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Skilled Labor Force: Bangladesh has a large and skilled workforce in the textile and clothing industry. The country has invested in vocational training programs to improve the skills of its workforce.
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Favorable Trade Agreements: Bangladesh has benefited from various trade agreements, such as the Generalized System of Preferences (GSP), which provides duty-free access to the European Union and the United States. This has allowed Bangladesh to export its textile and clothing products to these markets at a competitive price.
Overall, Bangladesh's competitive advantage in textile and clothing manufacturing is a combination of various factors such as low labor costs, strategic location, government policies, skilled labor force, and favorable trade agreements. These factors have enabled the country to become a leading exporter of textile and clothing products globally.