MOR 465 Lecture Notes - Lecture 5: American Apparel

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30 Apr 2016
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While reading the case, i was very adamant on maintaining the responsibility for the tragedy was to be carried by the suppliers in bangladesh. The initial discussion and videos presented in class gave me reasons to believe the multinational corporations and governments of rich countries had a part to play. Like i mentioned in class, the lure of bangladesh to produce is that it is cheap in terms of labor. If they increase prices to develop their infrastructure, the brands will move to the other countries. The ceo of american apparel pointed out that it is within the reach of the multinational organizations to increase the minimum wage and still maintain profits. It was important to note that the suppliers are on a short leash" by the mncs. The international giants put time and money constraints that does not leave much room for development. The recommendation of the group presenting to gap was to renegotiate the contracts.

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