For developing countries what are the advantages and disadvantages of Assignment

For developing countries what are the advantages and disadvantages of participating in the global garment industry - Assignment Example creasing development in this industry is due to the availability of a cheap work force, ready market and easy transportation due to its negligible weight (TAYLOR, 2009). Developing countries have maximized their raw materials and there has been dramatic increase in the production which now accounts for about 70% of the world export on clothing. However, the garment industry is not left far behind as it accounts for about 3.2% of the world’s manufacturing export (TAYLOR, 2009). Developing countries’ involvement in the global trade, especially in the garment industry has both positive and negative impacts. On the positive impacts is the fact that this industry has increased the level of employment reducing unemployment in developing countries, which has been one of the major epidemics. For example, in Bangladesh, about 1.5 million workers are absorbed in these industries which are about 65% of the total workforce (Hoque, 2005). In Morocco, about 40% of the total human resources are also absorbed into this industry. Second advantage is the increased level of foreign exchange or export earnings. These increased earnings are very vital in any developing countries since it is a source of revenue through which the government injects into development projects so as to improve the living standards of its citizens (TAYLOR, 2009). In Bangladesh, this industry contributes to about 75% of the country’s total export earnings. In Mauritius, it is about 64%, while in Sri Lanka it is about 50%, and in Tunisia it is about 40%. Next is that it has some considerable total added value of merchand ise exports. This is evident in countries such as Bangladesh which is about 55%, Turkey being 28%, while in Morocco and Pakistan it is 20% (TAYLOR, 2009). On the other hand, linearization of trade has disadvantages in all industrial sectors, garment industry being inclusive. First is that these developing countries have removed all the trade barriers which may later lead to