The garment industry of Indonesia has been the key export division and a main source of foreign exchange for the last 25 years. At present, the country generates about $5 billion worth of products each year by exporting garment. The industry provides employment to about 3 million workers of whom 90% are women. Two non-market elements have performed a vital function in confirming the garment industry’s continual success; these elements are (a) quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and (b) special market entry to European markets. The whole procedure is strongly related with the trend of relocation of production.
The global economy is now controlled by the transfer of production where firms of developed countries swing their attention to developing countries. The new representation is centred on a core-periphery system of production, with a comparatively small centre of permanent employees dealing with finance, research and development, technological institution and modernisation and a periphery containing dependent elements of production procedure. Reducing costs and increasing output are the main causes for this disposition. They have discovered that the simplest way to undercharge is to move production to a country where labour charge and production costs are lower. Since developing nations provide areas that do not impose costs like environmental degeneration, this practice protects the developed countries against the issues of environment and law. The transfer of production to Third World has helped the expansion of economy of these nations and also speed up the economy of the developed nations. Garment industry is controlled by the transfer of production. The globalisation of Indonesia garment started earlier and has expanded more than that of any other factory. The companies have transferred their blue-collar production activities from high-wage areas to low-cost manufacturing regions in industrialising countries. The enhancement of communication system and networking has played a key role in this development.
www.garmentindonesia.net – Indonesian Garment Industry caters to all aspects of the fashion process-from design and production to wholesale selling-and has the densest concentration of fashion businesses in a single district of any in the world.
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