countries alone. Newly industrialising countries, like the NIEs and ASEAN countries, which used to be the recipients of foreign investment, became part of globalisation as sources of direct investment.
The case of Desh Garments, one of the pioneer garment companies in Bangladesh,
technical collaboration with Daewoo, a leading Korean business group.
mainly took responsibility for procurement of raw materials and marketing of the company’s products in the international market and for training of managers and workers. When Desh’s operations proved successful, a large number of local entrepreneurs entered the sector with foreign buyers retaining major control in the
marketing operations of the local mills.
In other words, Bangladesh
Prior to its collaboration with Desh Garments, Daewoo’s involvement in Bangladesh was limited to trading. Besides the rising cost of labour and a labour shortage in Korea, the main reason for Daewoo to invest in the RMG sector in Bangladesh was the import restrictions against some of its garment products in the US and other OECD markets under the MFA regime (Rhee 1990: 336).
Since its inception in 1974, MFA was extended several times with widening
coverage. the 1950s.
The history of trade control in the textile sector can be traced back to The US, which had been an exporter of textile articles, had become a
net importer by that time. particularly Japanese textiles,
increased penetration of imported products, the US market prompted the US government,
from the textile lobby, to
take a protectionist attitude against
Arrangement in 1962.
In 1973 this was then extended into the MFA, which was
enlarged to cover exports in general
all kinds of textile and clothing articles. took the form of bilateral quotas negotiated
Restrictions on within the MFA