Beginning in the United States in December 2007 (and with much greater strength since September 2008, according to the National Bureau of Economical Research), the industrialized community has been undergoing a economic downturn, a evident deceleration of economic activity. This global recession have been taking place within an economic environment seen as a various imbalances and was sparked by outbreak in the financial crisis of 2007вЂ“2009. This global economic depression has led to a sharp drop in intercontinental trade, growing unemployment and slumping asset prices.
The crisis affected all countries in some ways, although certain countries were vastly affected more than others. Specialists deemed the export sector to be potentially the most vulnerable in Bangladesh since it will depend heavily about US and EU economies. The RMG sector of Bangladesh which in turn contributes 76% of the total export profits of Bangladesh was the subject matter of concern for any its stakeholders including the Apparel owners, intermediaries, its countless workers as well as the government and policy makers of Bangladesh. This kind of paper is definitely an analysis of the post recession period of the RMG sector of Bangladesh. Their findings emphasis mainly in three different areas of this sector which are a. The current situation of the Apparel sector of Bangladesh in the global industry. b. The SWOT (Strength, Weakness, Prospect and Threat) analysis of the sector. c. And finally a quantitative research of post recession export volume of the garments industry. This report shows that Bangladesh till has survived virtually unscathed by the global economic depression. After the key hit in the recession in the end of 2008 the export products of the RMG had slowed down in early 2009 but by March experienced picked up entirely force so that an end with the year research shows a rise in the export products of the RMG sector in the country which will contrarily for the experts who have predicted a doom just for this sector post recession. Apart from an increased degree of haggling over price by simply foreign customers there is no different significant effect in the RMG sector of Bangladesh. 1 ) INTRODUCTION
The Ready Made Garments (RMG) sector plays a pivotal position in the economy of Bangladesh. This sector makes up about approximately 76% of the total export earnings and almost 10% of GDP. Currently there are about 4, 500 garments industries employing about 2 . a few million persons, among which usually 80% are women. (International finance Corporation, 2008)
The growth and advancement the RMG industry in Bangladesh was your result of a worldwide " managed tradeвЂќ program in the clothes. Thanks to the subgroup restrictions, many businesses were appreciative to relocate their sourcing and production facilities in the low cost under-developed developing countries. The operation of MFA quotas at the same time led to exporting opportunities in countries exactly where textile and clothing were not traditional foreign trade items. Various international organization firms, facing binding sampling restrictions inside their own countries, had moved part of all their production and trade to other comparatively poor developing countries which include Bangladesh. The quota system ensured the time to develop and pay attention to the skills essential in the production and marketing. Therefore the RMG business made its debut in Bangladesh because of a joint-venture between a South Korean and Bangladeshi firm in the late 70s as being a negligible non- traditional sector with a narrow export bottom. Within five years of the beginning, it emerged as a promising export generating sector in the вЂ90s. Over the past two decades, RMG export revenue have improved by a lot more than 8 instances with an excellent growth price of 16. 5 percent each year. In 2006, income reached eight. 93352 billion dollars USD, that has been only not more than a billion CHF in 1991. Bar 2002, the industry signed up significant confident growth during this period.
Meantime, Bangladesh Bank Sydney released just lately recommended a close watch around the impact...
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