The more labor-intensive part of the value chain of clothing production is more likely to take place in high-wage countries than in low-wage countries.

Question

Quizplus · Accepted Answer

The more labor-intensive part of the value chain, such as cutting, sewing, and assembly, is usually outsourced to low-wage countries where labor costs are cheaper. Therefore, it is more likely to take place in low-wage countries than in high-wage countries. High-wage countries may still participate in the value chain by handling design, marketing, and distribution.

The More Labor-Intensive Part of the Value Chain of Clothing