Free trade regime in the textile industry

Pick two questions below to respond to the discussion this week. The questions are based on Case 9 “Disaster
in Bangladesh” that can be found at the end of the book on page C-33

1. From an economic perspective, was the shift to a free trade regime in the textile industry good for
   Bangladesh?
2. Economically who benefits when retailers in Europe and the United States source textiles from low-wage
   countries such as Bangladesh? Who might lose? Do the gains outweigh the losses?
3. What the causes of the weak safety record of the Bangladesh garment industry? Do Western companies
   that import garments from Bangladesh bear any responsibility for what happened at the Rana Plaza and other
   workplace accidents?
4. Do you think the legally binding agreement signed by H&M, Zara, Tesco and others will make a difference?
   Does it go far enough? What else might be done?
5. What do you think about Walt Disney’s decision not to purchase merchandise from Bangladesh? Is this an
   appropriate way of dealing with the problem?
6. What do you think of Wal-Mart’s approach to this problem? Is the company doing enough? What else could
   it do?

Sample Solution