Why are Chinese factories turning to Bangladesh Essay

Why are Chinese factories turning to Bangladesh - Essay Example This scenario has been a major instigator for business organisations in China to look forward to better and more convenient option especially for manufacturing purposes in a foreign destination. China, in recent years, has been regarded as one of the fastest developing economies in the world. One of the key reasons behind the continued and sustained growth of the Chinese economy has been industrial growth (World Bank Office, Beijing, â€Å"China Quarterly Update†). However, in recent years the Chinese economy has witnessed a noticeable slowdown. The volatile world economic environment as well as rigid domestic polices have the combined factors that have contributed towards this scenario (World Bank Office, Beijing, â€Å"China Quarterly Update†). Thus, in order to mitigate this problem the Chinese factories or manufacturers have started to look beyond their own shores to import products. Consequently, Bangladesh has become a favourable option for them because it provide s efficient workers and comparatively lower wage rates. This strategy by Chinese manufacturers has been mainly prompted by the prevailing condition in their own market to manufacture products (Cawinfo, â€Å"Chinese Factories Turn to Bangladesh as Labour Costs Rise’). Thesis Statement The report intends to discuss the key reasons behind the Chinese factories turning to Bangladesh as a destination for especially importing products. The major driving forces of globalisation have also been considered in the report to comprehend the scenario. Globalisation as a Driving Force for Chinese Factories to Turning to Bangladesh The drivers of globalisation have been an imperative factor behind the Chinese manufacturers desiring to outsource their business in a foreign destination such as Bangladesh which majorly includes, open markets, International Trade Relation Policies, progress in transport and information technology, privatisation and liberalisation (A Global Ethic Now, â€Å"Dr iving Forces Behind Globalisation†). These key drivers that have encouraged the Chinese factories to turn to Bangladesh as a possible location for outsourcing are opening up of different national markets to all sorts of companies and removal of trade restrictions. However, in recent times, the one of the biggest problems which has been faced by Chinese manufacturers is the labour crisis. In China, a continued war in relation to labour rights has been a critical issue which has affected the industrial sector in recent times. The war has been engaged with a huge number of people who come under certain different categories of business world. The workers, trade unions, corporate, Non-Governmental Organisations (NGOs) and political parties in China are deeply engaged in this serious issue. It has resulted in an impact on worker privileges, wages, working environment in China. This battle is badly affecting the Chinese economic conditions. It has become a tough task for manufacturin g organisations to abstain from the intermediary cooperation among worker organisations and their allies to procreate a sustainable relation in between the justice related to economy and social activities. It is quite apparent that a host of challenges for worker and social movements are being created in the economy of China. The manufacturing industry which relies significantly upon the workers is facing major strife to deal with

External Environmental Scan Paper Essay Example | Topics and Well Written Essays - 750 words

External Environmental Scan Paper - Essay Example The analysis of the external environment has made Apple has spread its operations to different parts of the world like Korea, Cork, China, Ireland and Czech Republic (Hassan, 2013).   The most important external environmental factor in the remote, industry, and external operating environments of Apple include political, economic, social, and technology. By operating in different parts of the world, political factors normally affect the operation of Apple. A country with stable governance systems like UK and the US provides the company with a favorable environment for the operation because such countries hold an enviable and strong position in global politics. However, there are risks posed by terrorist elements that hinder their operation. The current political challenges that affect the company are, therefore, the sagging popularity of some countries like the UK and the increasing terrorist threats (Newlands & Hooper, 2009). Economically, the company has been greatly affected by the economic downturn experienced throughout the world. This has affected the financial systems of many countries as it has resulted into fluctuation in exchange rate particularly when dealing with their foreign trade. The global crisis has also led to slow economic growth that has reduced the profit margins for the company particularly in weak economies (Hassan, 2013).   These factors have massively contributed to the companys success in terms of increased sales volume. Increased education levels and increased the number of people, institutions and companies that buy through the internet has resulted in the tremendous increase in growth of the company. Another factor that has greatly impacted the company is a technology. Due to fast technological changes and heavy competition, the company has increased its expense on research and development so as to be ahead of their competitors by improving their design and performance continually (Hassan,