Offshoring in Clothing Industry

What is offshoring?

The movement of jobs and tasks from one country to another, usually from high-cost countries to low-cost countries with significantly lower wages.

Why do businesses offshore?

To reduce costs and create a higher production rate.

What is an example of a low wage in offshoring?

Workers in Bangladesh make around $68 a month compared to American factory workers who make around $1,600 a month.

What is the impact of the MFA phase-out on offshoring?

Companies were able to take advantage of lower-cost resources from developing countries.

Why isn't offshoring illegal?

Because of WTO trade rules, weak local labor laws, and companies fulfilling contracts as long as wages are paid and laws are followed.

What is a significant consequence of offshoring in the clothing industry?

It creates a gap between lawful practices and poor working conditions.

Which brand is known for outsourcing production to factories in low-cost countries?

Nike

What are some countries where H&M produces its clothing?

Bangladesh, China, Cambodia, and Ethiopia.

What are the reported conditions for garment workers in Bangladesh?

Unsafe working conditions, long hours, and poverty wages.

What is the Rana Plaza factory collapse?

A disaster in 2013 where the building collapsed, killing 1,134 workers and injuring 2,500.

What corrupt practices contributed to the Rana Plaza collapse?

Illegal construction and bribing officials to overlook safety regulations.

What was the outcome for victims of the Rana Plaza collapse?

$34 million were paid to victims and their families by 2015.

What is the environmental impact of fast fashion production?

It contributes to overproduction, waste, and pollution, accounting for 10% of global carbon emissions.

What percentage of fast fashion factory workers make a living wage?

Less than 2%.

What are some human rights violations in the clothing industry?

Child labor, long working hours, and exposure to harmful chemicals.

What can be done to reduce offshoring?

Promote job creation, increase environmental protection, and implement tax incentives.

What is greenwashing in the context of fast fashion?

When brands market themselves as sustainable while their practices do not match those claims.

What role do NGOs and activists play in the clothing industry?

They push for reforms and expose poor labor practices.

What is the relationship between offshoring and domestic regulations?

Offshoring allows companies to bypass stricter labor, environmental, and tax regulations in their home countries.

What is the significance of the 2023 International Accord for Health and Safety?

It was signed by over 200 apparel and retail companies to ensure safety in the textile and garment industry.

How does offshoring affect corporate profits?

It maximizes profits for corporations while often harming workers and the environment.

What are the labor rights concerns associated with Shein's offshoring practices?

Reports of long hours, low pay, and unsafe working environments.

What is the impact of synthetic fibers used in clothing production?

They take hundreds of years to biodegrade and contribute to microplastic pollution.

What is a major challenge in ensuring ethical practices in the clothing supply chain?

Limited visibility into where raw materials are sourced.

What can consumers do to promote ethical fashion?

Use social media to raise awareness and inform others about the impacts of fast fashion.