Assess the impact of international business on social and economic Research Paper

Assess the impact of international business on social and economic conditions in bangladesh - Research Paper Example Workers were forced to go to the streets to fight for their rights which they thought were being infringed. The government formed wage board with the help of international labor organization stepped in to assist in the crisis. December last year the wage board approved a 77% increment in wage in the garment industry though most factory owners opposed it they had to oblige. As much as their right was granted, another problem arose. According to (Lazear, 15) the increase in minimum pay pushed the production cost since labor is the most valuable asset in production. On a business perspective, this was tragedy especially international trade. Price and quality of a product are correlated in international market and therefore, sound decision should be made before implementation. The increased minimum wage paved way for China, India, Turkey and Indonesia to surpass Bangladesh in the exportation of garment. According to (AP Worldstream, 7) This was attributed to the increase in the price of her garment which was expensive as compared to her competitors. This will impact on Bangladesh since she will experience unfavorable balance of payment i.e. high value of import as compared to export. Bangladesh being a developing country faces the problem of inequality in wealth distribution. In Bangladesh, the social class differs on extreme scenario such that we have those who are extreme poor and those who are â€Å"stinking† rich. People living around urban areas like Dhaka enjoy a quality life as those who live in the rural area. However, this doesn’t mean that all Dhaka inhabitants enjoy lucrative lifestyle, also in Dhaka there are shanties (Vietnamese News Agency, 4). In these shanties, the sanitation is compromised though they enjoy some benefits like availability of electricity and water. Inequality in wealth distribution has an impact to business development of a nation. With this widening gap between the rich and the poor in