This particular project aims to find the particular issues related to the textile industry. The home state that has been chosen is Bangladesh (Ali & Moudud-Ul-Huq, 2016). This is because the workforce in Bangladesh in regards to the particular industry maintains a higher degree of quality. However, the major problem that has been pointed out in this study is the communication gap and the distance barrier between the home state and the host states that are Canada, United States of America and a few countries of Europe (Ali & Moudud-Ul-Huq, 2016).
The textile industry plays a major role in the growth of economy in Bangladesh. A major portion of the industrial employment and export earnings in the economy of Bangladesh has been contributed by the textile industry (Curran & Nadvi, 2015). The majority of the workers in this particular industry has been women thus facilitating a viable means for the channelizing of women empowerment. The textile industry in Bangladesh can be broadly categorized into two types of major industries like the backward linkage industries and the forward linkage industries (Curran & Nadvi, 2015).
The type of business that is majorly carried out by the home state that is Bangladesh is the Horizontal oriented textile mill and the vertically oriented textile mill. The horizontal oriented textile mill is majorly the factory or mills that constitute of the heavy weight large machineries (Habib, 2016). The vertically oriented textile mills on the other hand are the mills that have been constructed on a multistoried type building. This type of mills generally consists of light weight machinery (Habib, 2016). The sequences of the process or the steps that are involved in the manufacturing process are arranged on the basis of the output of the product. The textile companies in Bangladesh essentially consist of the RMG sector, the packaging, and the printing sector in relation to the textile products that essentially have been manufactured by the domestic facilities in Bangladesh (Curran & Nadvi, 2015).
Tasks in Home state
The textile industry if analyzed essentially consists of two major production processes. The first manufacturing process involves the fundamental activities that has been conducted by the labor or the work force in Bangladesh (Underhill, 2016). The formal companies in Bangladesh that are labeled as textile companies promote the printing, packaging, advertising, marketing and other related activities that are required for selling the products (Habib, 2016).
The major sectors that have been included in the manufacture of the major textile products are spinning, weaving, knitting, dyeing and finishing, apparel or garments, jute, sericulture, hand loom and power loom. The different textile products that is associated with the textile industry in Bangladesh are yarn, grey knit fabric, grey woven fabric, dyed or printed fabric, men and women wear, carpet, twine, hessian, sacking, silk yarn, silk fabric and other hand loom or power loom related products (Underhill, 2016). The different unions and associations that regulate the textile market in Bangladesh are as follows:
- Bangladesh Textile Mills and Exporters Association (BTMEA)
- Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)
- Specialized Textiles & Power Loom Manufacturers and Exporters Association
- Bangladesh Dyed Yarn Exporters Association (BDYEA)
The three fundamental factors that have improved and provided the required boost to the textile industry in Bangladesh are that the country is filled up with resources, opportunities and beneficial governmental policies. Bangladesh also facilitates a huge number of labor workers or the labor workforce that is a crucial portion of the textile industry (Seddiqe & Basak, 2014). Moreover, the costs related to the textile business that is the natural gas and cost of energy is cheaper in Bangladesh. The huge population in Bangladesh also facilitates the production of labor-intensive products (Seddiqe & Basak, 2014).
There are a numerous products that have been facilitated by the textile sector in Bangladesh. The present scenario of the textile sector in Bangladesh is as follows:
- Spinning sector – the different types of yarns have been produced at this particular sector.
- Weaving section – the numerous designs in relation to woven fabric has been promoted by this sector.
- Power loom sector – the major specialized and synthetic products are produced by this sector
- Hand loom sector – this sector is concerned with the production of the traditional apparels of Bangladesh
- Knitting – the knitting products that have been produced by this sector
- Dyeing products
- RMG sector
- Sericulture sector is concerned with the production of the silk worm, cocoon, silk yarn and fabric related products
- Jute sector is concerned with the jute related products.
The host state that has been selected is Canada, United States of America and a few countries in Europe.
The textile industry in United States of America has been one of the top manufacturing sectors with 229,000 workers. The recent investment in the textile industry in United States has been of an amount of $1.7 billion (Hasanbeigi & Price, 2015). The particular industry has been facilitating the export of the textiles which increased by 31% between the financial years of 2009 to 2015 (Hasanbeigi & Price, 2015).
The textile industry in the European Union has been facilitated by an annual turnover of EUR 166 billion (Underhill, 2016). The particular industry also employs over 1.7 million people. This particular sector has been diverse. The textile industry also plays an important role in the European manufacturing industry (Underhill, 2016).
The Canadian textile industry also holds a strong textile market and also supplies a wide range of value added products to a huge number of consumers over the country (Underhill, 2016).
However, the particular problem faced by all these industries is an improved and quality work force that is only available in Bangladesh.
Developing and selling of textile products in Canada:
Over the last decade, Canada has witnesses a production shift to the production and development of technical and non-woven textiles from traditional textile manufacturing. Growth in textile industry has been driven due to the taxation-law advances in textile sciences, new technique implementation and stronger industrial knowledge. The importing of textiles in Canada is affected by amendment of import control list under the export and import permit act (Curran &Nadvi, 2015). Due to advancement in technical knowledge, textile products have experienced rapid expansion. This has led to development of new textile related products that can have multiple applications such as infrastructure, medical, construction, agriculture, transportation and safety (Ansary &Barua, 2015). Therefore, rapid increase in demand of textile product in Canada will help Bangladesh to increase selling of their textile products.
Developing and selling of textile products in USA and other countries of Europe:
United States does not impose any quota and tariff on textile products and there are no quantitative restrictions in country. Development of textile products in the country requires the establishments of process fiber into fabric and fabric into textile products (Yunus & Yamagata, 2014). Existing textile mills in US will help Bangladesh to export semi manufactured textile products by transformation of synthetic and natural products into yard, fiber and threads. Productivity in textiles in being boosted by advanced machineries (Seddiqe &Basak, 2014). Other functions such as cutting, design and pattern making is assisted by computer-controlled equipment. Development of product life cycle management has received contribution from computer aided design system. For selling of textile products, technique of direct marketing can be used by exporters of Bangladesh (Ansary &Barua, 2015).
In the world market, Europe is regarded as leader in textile industry and in order to maintain the competitiveness of this particular sector, many countries have undergone some radical changes. A wide range of activities is covered in textile industry of European countries ranging from transformation of synthetic and natural fibers into fabrics and yarns (Hasan et al., 2016). The competitiveness of textile products are improved by concentrating on wide variety of higher value products. Development of textile products in European countries will be done in the form of higher value products so that textile industry is strengthened (Trade.gov, 2018).
Transportation of goods to customers:
This particular section deals with the supply chain management and logistics system of textile industries in European countries.
Method- The method of transporting textile products will be done within the same country where the semi-manufactured goods are exported. It might incorporates road and rail transport. Movement of textile products via road incorporates different cargoes that are from air to truck and truck to rail (Curran &Nadvi, 2015). Regulations of trucking industry in countries are done in terms of licensing, highway regulations and overall equipment. Transportation of goods via the road requires standard packaging of commercial documentation (Mazumder & Mitra, 2017) .Service options for truck transport involves small parcel services, specialty shipment and expedited deliveries (Alam &Natsuda, 2016). Rail transport will help in transporting of goods and some of rail equipment involves hopper cars, Gondolas, boxcars, trailers, automobile cars and flat cars.
Delivery time- Delivery dates are based upon all the required information of vendors and buyers. Delivery time frame varies country by country as they are framed based on different parameters (Wahid, 2017).
Tariffs and non-tariffs barriers to trade:
The challenge faced by USA concerning technical textile exporters and the demand of products in the country is limited due to protectionist policies like imposition of non-automatic import license and higher tariffs (international.gc.ca, 2018). Under the provisions of Canadian Customs tariff regulations, importations of certain commodities are prevented. The administrations of import and export permits are the responsibility of export and import control Bureau (Tanvir et al., 2015). Some of the non-tariff barriers in the host countries such as USA and Canada are assessed by a translated copy of technical regulations, problematic areas identification and standards background and difference in procedures of their compliance.
Pricing and domestic competition:
The rates of duty negotiated will be applicable to US and Canada with respect to most of the textile products. Export of apparels will have access to levels of tariff preferences (Alam &Natsuda, 2016). Market of both the countries along with European countries is the most accessible markets for textile products (Haque &Azmat, 2015). However, there are some challenges faced regarding this are documentation of customs, pre packages textile goods requirement, bilingual labels in French and English and advertisement requirements.
OECD claims is about the implementation of due diligence guidance in the technical industry and helps in addressing emerging risks in the sector. Such claims help in the transformation of textile industry for both the exporting as well as importing countries. It makes companies operating in different regions to prevent, identify, mitigate and account for negative impacts on the supply chain of textile industry. Promulgation of textile industry is done by the promoted international efforts with standards of due diligence (international.gc.ca, 2018). Companies are provided with detailed guidance on notice period length, compensation following the unfair dismissal, maximum cumulated durations of successive standards (Ansary &Barua, 2015). It leads to explanation and illustrations for ensuring the equal treatments of agency workers and regular workers.
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