Bangladesh, a very poor country, has been able to grow even during the most recent global recession thanks to its strong textile industry. Bangladesh, with its low wages, large investments in textile technology, and strong network of supporting industries, is now one of the world's lowest cost producers of textiles.
1: Why was the shift to a free trade regime in the textile industry good for Bangladesh?
2: Who benefits when retailers in the United States source textiles from low wage countries such as Bangladesh? Who might lose? Do the gains outweigh the losses?
3: What international trade theory, or theories, best explain the rise of Bangladesh as a textile exporting powerhouse?
4: How secure is Bangladesh's textile industry from foreign competition? What factors could ultimately lead to a decline?