Earlier quoted context omitted.
> A company doing business in Bangladesh has a fixed amount of money they can spend on compensation + safety + etc. That's not true, the safety expenses should be mandated and everyone's prices will increase accordingly. Prices are set according to costs and in the developed world, safety is a required cost. It could happen overnight if the big customers actually required it. Imagine if Walmart suspended billions of…
The problem with that is country borders. If China mandated safety then the factories just move to another country.
Because they would have nowhere to move to.
First... China has a humongous work force, which solely on numbers no other country can compete with, you need whole continents to get the same mass of workforce.
Second, in comparison to the rest of the BRIC competitors - Chinese workforce is relatively homogenous, well educated and most importantly of all they have a work ethic (Brazil? Hahahahah).
Third, low price is not the sole reason why stuff is produced in China (Go read why Ipad production is never returning to the US according to Steve Jobs).