18. Lured by extremely low labor costs in Bangladesh, many MNCs in the so-called fast fashion business,

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18. Lured by extremely low labor costs in Bangladesh, many MNCs in the so-called fast fashion business, including H&M, Inditex (parent of the popular Zara brand), Marks&Spencer, and Gap, are heavily outsourcing to Bangladesh. As a result, the garment industry has become a major source of employment and income for Bangladesh. However, the industry has recently suffered a spate of disasters. In September 2012, about 110 workers died in a blaze at the Tazeen Fashions factory outside Dhaka, the capital city.

What’s worse, in April 2013, more than 1,100 workers perished in the collapse of the Rena Plaz building in Dhaka. In your opinion, (i) what are the root causes of the disasters? (ii)

What should be done to prevent future disasters?

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ISE International Financial Management

ISBN: 9781260575316

9th International Edition

Authors: Cheol Eun, Bruce Resnick, Tuugi Chuluun

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