ABSTRACT
Economic globalization involves trade, capital flows, and the movement of labour, and an important element in that process is the globalization of production. With the gradual dismantling of trade barriers, and capital flows becoming easier, globalization of production has flourished. Since the globalization of production involves the splitting of the global value chain into different components, success depends critically on several conditions, including the technical capacity of the producers of components and assembly firms, the availability of workers with necessary skills, and the ability of managers to deliver according to strict time schedules. In many ways, the ready-made garment (RMG) industry of Bangladesh epitomizes the positive as well as negative aspects of globalization and the pressures created on workers. Growth of this labour-intensive export-oriented industry started in the early 1980s. In 1984–85, there were 384 factories producing RMG for exports that fetched $116 million accounting for 12.44 per cent of total exports.
