Question

How do garment factories maximise their profits?

Answer 1

Here it is the businessmen who have more bargaining power:

They demand the lowest price from the supplierThey also set high quality standards.They set strict timelines for delivery. They deal very strictly with any defect or delay in delivery.

Hence the supplier has to try his best to stick to the conditions of the powerful buyers. In the process they end up exploiting the poor people who work in their factories.

They indulge in cost cutting. They extract maximum work from the workers at the lowest prices (wages). In this way they are able to;

Maximize their profits andSupply the garments to the foreign buyers at a low price.