Colorado Limited is a lifestyle brand and is the premiere resource for Colorado
ID: 1135098 • Letter: C
Question
Colorado Limited is a lifestyle brand and is the premiere resource for Colorado Flag clothing and apparel, with retail kiosks in Denver, Boulder, Vail and at Denver International Airport. Colorado Limited leverages contract manufacturing in Bangladesh for some of its products.
Drawing on what you learned in Chapter 1 of your textbook, discuss how the land, labor and capital resources in Bangladesh may contribute to Colorado Limited establishing contract manufacturing there.
Do you believe Colorado Limited could sell their products for the same price if they manufactured them in the United States? Explain.
Explanation / Answer
Colorado limited is a life style brand and premises resource for Colorado flag apparel with retail kiosks in denver,boulder,Vail and at Denver international airport. Then the Colorado limited is leverage contract manufacturing in Bangladesh.
The capital resources in Bangladesh are
Land:
Recent developments and opportunities, insufficient infrastructure and difficulties in obtaining land is present big hurdles to instigating production in Bangladesh.
6% of the total land area is Perminently under water,2/3rd of land is flooded for part of the year. The floods often result in great loss of life, crops and property.
LABOUR:
Total labour force is 109.1 milions. 40.6% Agriculture, 20.4% industry, 39.6% Services.
Unemployment
Overall unemployment is 4.2%. males 3.1%, Female 6.7%
These capital resources is difficult to set up manufacturing unit in Bangladesh. Land resources are difficult because the infrastructure facilities are very poor from natural resources like the hills and Brahmhputra,Ganga rivers. Labour force is very cheap to availability for manufacturing.
CAPITAL:
Market based economy Bangladesh is 41st largest in the world in nominal terms, and 31st largest by purchasing power.Bangladesh have BB- credit rating.
Finally Colorado limited is safe to sell lower prices in Bangladesh because there purchasing power is not higher to compare other economies. And the labour force is available very cheap in manufacturing so the cost of production reduce than previous manufacturing units. So lower prices is get more sells, and get more revenue. It is results acquired high marketing share in the industry.