Why do all the poor countries make clothes?

Question

I have a lot of made in the usa clothes but I noticed some "good quality" name brands are having their stuff starting to be made in china, even odd countries like some african monarchy down in south africa, also vietnam, hong kong, jordan, etc...

My question is this- why did some of these so called "higher quality brands" start having their crap made in third world countries and why do these poor countries make so little per day ( the african one they make a dollar a day) it says and yet they are making good quality clothes for the people in america?

Answer 1

Their pay scale and tax base is a lot lower than anywhere in the U.S.. For us, if we were offered $2 per hour for the job, we would tell them "take this job and shove it". For the poor countries, $2/hour is a very good wage. Also those third world countries might offer tax incentives to locate their factories there where as the U.S. might not offer any incentives. The profit margin is much greater in those countries than here in the states.



Another example:



It is cheaper to send raw steel making material to Japan to make and ship it back to the U.S. than to have it made here. Doesn't make sense.

Answer 2

Simples. So the clothing companies can make more profits. It's all about MONEY and GREED. The clothing companies can hire ppl in third world companies to make the clothes at a fraction of the cost it would in America. Plus lower taxes, don't have to pay for employees health care, no minimum wage means big profits and big bonuses for the big wigs.

Answer 3

It's easier for these high quality brands to pay children 30 cents an hour in some third world country than to pay minimum wage to person here.

Answer 4

the basic point is.

Third world countries will work for an absolute minimum wage.

therefore,

it costs people a HELL of a lot less to make the clothes they sell so they can then make a incredible profit by charging the roof for their products,



Its called exploitation and its wrong.

But hey,

its how the world works.

Answer 5

businesses want to make as much profit as possible. By employing people in LEDCs(Less economically developed countries) they can get cheap labour and therefore a larger profit margin. These "higher quality brands" have twigged that they can make even more money by getting them to make things cheaper. Business is harsh.

Answer 6

They can find someone who does it cheaper by the thousands and the more PROFIT FOR THEM.



I stopped buying shoes Designed by Franco Sarto, when it is Made in China, because that's like buying shoes made in China, designed by Franco. So, what's the difference? He just put his label on the shoes, it's still China quality and cheap!!!!



Ridiculous!

Answer 7

Foreign labor for incredibly cheap wages because of the exchange rate (and because there aren't unions and government "minimum wages" to set standards for working conditions and basic salary requirements). Exploitation of workers is a big problem with a lot of companies.

Answer 8

They don't want to pay the American minimum wage. People in very poor countries will work for extremely low wages. Its how the companies make their profits. It's really really messed up.

Answer 9

Easy. Its cheaper to pay people low wages. Simple business concept: "Buy low, sell high". A company will make more money this way.



Think about it: Is it cheaper for Nike to pay Indonesians 2 cents an hour to make shoes, or to pay an American minimum wage to make shoes? Which way will make Nike more money?



Thats right..... Nike makes a bigger profit if labor is cheap.

Answer 10

It is all about PROFIT they big wigs want money and the cheaper the labor and the more they sell it for the more money they make it is all about them while in the mean time WE (the Consumers) & Laborers get screwed out of money just so the big wigs can be filthy rich is sick and wrong but that is why... it is all about PROFIT

Answer 11

Most poor countris have the most populaion so they need jobs and money ergo make clothes somthing everybody needs everyday

Answer 12

china not poor. anyway poor countries need money so they sell the clothes

Answer 13

You don't understand how cheap labor works, do you..

And btw, China's economy is doing much better than the US right now.

Good luck living with your eyes and mind closed.

:/

Answer 14

Can someone tell what is the correct answer for this question?

Answer 15

It depends..

Answer 16

So if they can't sell them they can wear them

Answer 17

because it is cheaper !