Pure Cotton and Machine Wash
Abstract
The garment industry excels in developed countries owing to its capital-intensive nature. Technological advancement and intense research in the field of Mechatronics have led to high automation capabilities, which have increased crop production and reduced disease prevalence. Operation costs in developed countries and high wage rates discourage manufacturing plants. Outsourcing occurs where industries are established in less developed countries that provide cheap labor and easy availability of production elements. The minimum wage rate of less developed countries is beyond the threshold leading to decreased production cost. Outsourcing has led to the creation of employment opportunities, revenue generation through taxes, and foreign exchange, which improves the economic development of these countries. However, there is the exploitation of cheap labor who are denied optimum working conditions and payments due to high unemployment rates. Positive law, in the form of legislative actions, helps regulate the outsourcing of industries.
PURE COTTON AND MACHINE WASH
The garment manufacturing industry is a capital-intensive venture that requires cheap labor and adequate raw materials available in some countries. Natural materials such as cotton are processed to form a yarn which proceeds through spinning to from end products. Almost all of the laborers are women who rely on the factories for their daily incomes. Different countries have varying minimum wage rates. Western countries outsource their enterprise to other countries that produce conducive conditions for the massive production of goods with low operation costs. Legislative actions established as favorable laws dictate the working conditions of employees based on the countries level of interest in foreign investments. States like India, where the textile industry has dominated the export market try to optimize conditions favoring investments while keeping wage rates for residents low.
Cotton is among the primary export earners in developed countries, for example, The United States of America. Cotton farmers practice extensive -scale farming and incorporate the use of modern technology in planting and harvesting of crops. The utilization of genetically modified crops designed in labs has led to more cotton per acre, and disease resistance has been noted. Technology such as driving machines is availed in the market within the farmer’s budget equipping them with massive automation. The automated tools save on the cost of labor by needing only one controlling person to cover close to 100 acres of cotton. Thus, technological advancement in farming machinery has led to increased production and quality of cotton.
The United States Department of Agriculture measures and determine the qualities of cotton production before the exportation phase. Cotton farmers make payments for reports of their products to be given to them. Cotton properties such as strength, color, and tenacity have significant implications in creating yarns used to manufacture clothes (Hequet, 2018). Generated reports are availed to customers globally with the specification sections. Cotton buyers can determine beforehand the quality of the product before being delivered. The report sheet has given the United States a competing edge over the rest of the cotton-growing industries. Therefore, the determination of cotton specification and distributing the information to the marketing communities has led to it becoming among the significant exporting commodities (Hequet, 2018).
The garment industry faces the major drawback of lacking customers for finished clothes. Significant constraints include fall in production levels and workers crisis where Trade Unions demand better working conditions and consequently wages for industrial labor. Relocation and outsourcing of the garment industries to less developed countries with a cheap workforce become a viable option. With the reduced cost of production, the garment industry in developed countries could sell the clothes at more economical prices but in sufficient quantities overshadowing the operational and transport cost. The developed countries have also invested in mechatronics by automatizing processing procedures. Thus, outsourcing is preferable to garment industries to reduce operating costs while maximizing profits.
Developed countries choose outsourcing options to exploit cheap labor. Positive law in those established countries protect worker’s right and demand proper working conditions at the detriment of the investors. Worker’s right is protected by trade unions and government bodies, making it compulsory for decreased profit margins since it’s shared collectively by all stakeholders in an equitable manner. Less developed countries become targets for Western Europe dominance where electricity, labor, and other fundamental elements required for the garment industry to operate efficiently, are available at affordable prices. Outsourcing is a move to cut on operation cost while utilizing maximum resources and is embraced by developed countries moving establishment to the less developed countries.
The textile industry in Bangladesh that is responsible for the manufacturing of men t-shirts becomes home to Western-based countries since the minimum wage rate was 39 dollars before being changed to 68 dollars (Alamgir & Banerjee, 2019). The amount is still well below the threshold wage payment amounting to 104 dollars. Factory employees, especially women, are generally subjected to harsh labor without expecting much cash (Alamgir & Banerjee, 2019). High unemployment rates make workers adamant about quitting jobs and assures the industry a constant labor stream. Such sectors are supported by the governments of the less developed countries since they generated income in the form of foreign exchange when the garments are exported. There is minimal intervention from international trade unions since the industry is in continued support of development programs and easing of unemployment rates. Therefore, legislation in less Developed countries permits the establishment of Western-based industries to help curb employment and generate foreign exchange.
In contrast, cotton farmers in Developed countries are availed with the latest technology, which provides enhanced growth and reduces pest’s prevalence. Farmers are given incentives and subsidiaries when buying farm equipment and requirements. Insurance companies are equipped with part of their operating costs to help cater to the farmer’s need in case of unexpected crop failure. The government makes direct payments regularly to the farmers to encourage large-scale cotton growth (Alam & Natsuda, 2016). The direct refunds are also given to the farmers when prices fall beyond a specific limit. Employees in developed countries have optimum working conditions and are supported by state and other organizations. This serves to showcase the difference in people working for the same industry in different countries. Existence and implementation of positive law where legislative procedures favor working conditions in particular countries over the others (Murphy, 2017).
However, the occurrence of the outsourced industry in less developed countries has proven economically beneficial through solving unemployment problems, availing garments at local prices that would otherwise be imported, and generating foreign revenue. The tax imposed on the industry at ground-level also helps to boost the countries economy. Less developed countries have inadequate knowledge and capital necessary to establish garment manufacturing firms by themselves. The existence of outsourced industries in these countries helps to accelerate the development phase since pipelines have lain, electric poles are erected, and there is a development of social amenities in areas where they exist (Alamgir & Banerjee, 2019). This has brought about rural development and solved about rural-urban migration, a common characteristic weighing down this country. Therefore, outsourcing in less developed countries is a necessary evil that helps to improve local living standards and boost economies of the countries where it is established.
In recent times, less developed countries have raised the minimum wage rate for employees in the garment industry. Naturally, the garment industries would relocate to other countries that offer better conditions, but options are becoming limited with time. The less developed countries have taken the initiative and established their local garment-producing firms, which go a long way to replace the foreign-based industry. Government subsidies in favor of the local goods have served to deter outsourced foreign trade from competing favorably. Consequently, this leads to the international industry increasing price of garments to cater to an increase in production cost. Due to the experience and vast knowledge pool of the outsourced countries, quality tends to be better compared to the local induced ones. Local governments regulate this by providing tax relief and exemptions to the foreign-based industries. Positive law is enforced to favor domestic industries, and increased wage returns for employees are given (Murphy, 2017).
In conclusion, the garment industry has grown substantially and has necessitated outsourcing to foreign countries with better production conditions with minimum operational costs. Governments of less developed countries are forced to embrace the outsourcing of industries due to economic and technological advancement attributed to the establishment of the outsourced industries. Governments earn revenue from tax and foreign exchange. However, the working conditions of the employees in factories of the outsourcing industries are poor, taking advantage of the extreme unemployment rates and lack of support from the government of enforcing minimum wage rates. Outsourcing of sectors is a necessary evil that helps in developing the less developed countries and giving insights on future probabilistic activities on establishing local garment manufacturing plants.
References
Alam, M. S., & Natsuda, K. (2016). The competitive factors of the Bangladeshi garment industry in the post-MFA era. Canadian Journal of Development Studies/Revue canadienne d’études du développement, 37(3), 316-336.
Alamgir, F., & Banerjee, S. B. (2019). Contested compliance regimes in global production networks: Insights from the Bangladesh garment industry. Human Relations, 72(2), 272-297.
Hequet, E. (2018). Impacts of fiber length distribution on market value and yarn quality: implications for US cotton. Cotton and Textile Topics.
Mostafa, R., & Klepper, S. (2018). Industrial development through tacit knowledge seeding: Evidence from the Bangladesh garment industry. Management Science, 64(2), 613-632.
Murphy, J. B. (2017). Positive Language and Positive Law in Plato’s Cratylus. In Plato and Modern Law (pp. 97-120). Routledge.