CNN Around the World May 3, 2013 16:44:00
Bangladesh to quote to make a denim shirt. now, the usa factory said it would cost $13.22 to make the shirt. the bangladeshi factory said $3.72. strip out shipping and all the other things and you end up with basically two major components, materials of course, which in the u.s. are $5. in bangladesh, $3.30. and what a discrepancy in terms of percentage of total cost. and now throw in that other big element, labor. $7.47, 57% of the cost in the u.s. but in bangladesh just $0.22, just 6%. we see quite clearly materials are the big issue, labor minor when it comes to developing countries. but in...