Discussion Questions for US-Cambodia Case Essay Example

stability of the cotton trade became a concern for manufacturers in the US and Europe. Around 30 countries signed the Short Term Cotton Arrangement and the Long Term Cotton Arrangement to address this issue. The US-Cambodia Bilateral Textile Trade Agreement provided significant benefits for Cambodia's garment industry. This agreement established a connection between compliance with labor laws and export quotas. Garment manufacturers were given export opportunities based on their adherence to ILO guidelines. Institutions that demonstrated high compliance were granted increased access to the American market.

The US-Cambodia Bilateral Textile Trade Agreement introduced predefined profit margins, with the aim of improving the United States' relationship with Cambodia's garment industry and government, as well as enhancing compliance with labor laws. What makes this agreement unique is its reliance on quotas as the sole means of ensuring labor law adherence and impacting America's export trade ties with Asian clothing manufacturers. It is also uncommon for export quota agreements to establish a benefit scale ahead of time.

A clause was honored by compliant manufacturers that resulted in a recommendation by the ILO for an increase in export quotas. However, the reduction in export limits did not yield the anticipated economic benefits. This action also influenced neighboring nations, leading other stakeholders in the Asian textile industry to take notice and aim for equal benefits in the American market. The US-Cambodia Bilateral Textile Trade Agreement can be evaluated through different perspectives. One viewpoint argues that Cambodia should have signed the agreement, while the other viewpoint opposes this decision. From my personal standpoint, Cambodia should have signed the agreement. Despite not fully benefiting from the promised financial aspects of the agreement,

it did improve the labor environment and positioned the country as a role model in the growing textile industry.

The establishment of discipline had a positive impact on the development of an industrial culture. Although the actual economic benefits did not reach the level of promises, they were still commendable. The International Labor Organization (ILO) in Cambodia is responsible for overseeing garment manufacturers and safeguarding shared interests. Its role includes monitoring the relationship between labor and manufacturing to ensure the protection of employees' rights.

The International Labour Organization (ILO) introduced trade unionism and aimed to create a favorable environment for manufacturers by ensuring fair labor conditions and respecting employees. This organization brought about a change in attitude and behavior, enforcing labor laws and promoting discipline within the garment industry. The ILO set high standards for garment manufacturers, making the country's labor structure a benchmark for other Asian countries. Many developing nations oppose complying with trade regulations recommended by the World Trade Organization (WTO), which they perceive as overly strict and detrimental to economic performance. These regulations impose rigorous rules that lead to manufacturing difficulties and increased operational costs. Consequently, the agreement restricts developing countries' access to the global market due to its labor-related definitions.

The text discusses the connection between labor conditions and global business approvals. The guidelines of the World Trade Organization for international trade suggest that manufacturers who comply with international labor laws should receive some kind of reward, while those who have poor working conditions should not. Unfortunately, the implementation of international labor guidelines in Cambodia has had negative consequences for business-labor relations. The country did not gain much from its partnership with America

in the bilateral textile trade agreement and has also lost access to many business opportunities. Cambodia's export activities have been limited due to the requirement of above-average production standards, which has resulted in the country being excluded from the competitive group. In contrast, other Asian countries have been able to benefit from unrestricted production processes.

If Cambodia engages in production activities that subject its labor force to subpar working conditions or other cosmetic issues, the country runs the risk of facing punitive measures. The cost of production is inflated, which results in a price disparity compared to alternative options. As a result, Cambodia is consistently losing business to Asian nations that have not ratified international labor laws. If I were employed by Nike or The Gap, it would not be wise to remain in Cambodia due to the poor performance of the economy, as job security cannot be guaranteed. This situation could potentially lead to further job losses and eventually result in the closure of offshore facilities.

In Cambodia, there is a positive aspect to staying employed - the commitment to adhering to labor regulations provides employees with protection. Cambodia's adherence to labor laws highlights a clear distinction between prioritizing individuals and institutions. The country's economy prioritizes procedural fairness, which prevents organizations from excessively profiting by exploiting the labor force.