Businesses decide to outsource because they can benefit more financially in another country rather than the US. In the fashion industry many companies outsource because they find cheaper ways to mass produce clothing In places called sweatshops. According to the US Ddepartment of Llabor, the lowest minimum wage in the United States is $7.25. According to Business Iinsider, India’s minimum wage lies at .28 dollarscents. Businesses can take advantage of things like this because it relieves them of responsibility of giving benefits and they save money because they don’t have to pay the higher minimum wages in the United States. Yes there are so many positive aspects to outsourcing specifically in the fashion industry. Manufactures and designers can send employment to other people in these poorer countries. Also manufacturers can mass produce more of a product to increase sales. But the pros of outsourcing the industry is outweighed by …show more content…
According to H&M, they have over 200 factories station in Bangladesh alone. According to Nike, they have almost 200 factories between china, india, and bangladesh. Many clothing companies aim for poorer, third world countries because they are easy targets for cheap labor. Bangladesh’s minimum wage is approximately 3,000 taka, which is equivalent to $38 USD (Yardley). To put this into perspective, a three3 pack of underwear from H&M costs $12.99 USD. T, that’s more than a worker in a sweatshop would make in about a week and a half. If a person in Bbangladesh ate off the McDonald’s dollar menu everyday, they would have a little over $7 to pay for other expenses. This is only if they are just one person,; could a family of four4 survive on this