Discussion about real-life example of foreign investment


Problem: Agreement with the Ethiopian Government in 2016 to develop an apparel manufacturing plant in an industrial park in Ethiopia. Production started in 2017 and PVH was celebrated for humanitarian efforts on behalf of Africa. They withdrew from manufacturing in Ethiopia in November 2021.  Furthermore, the Biden Administration has withdrawn AGOA status for Ethiopia, where there has been blatant human rights violations, including mass murders and sexual violence. Among the many problems PVH encountered one had to do with workers being cheated on wages which turned out to be about .22 an hour, far lower than what they had agreed to. Another problem was finding dependable workers who could get to work because of huge travel distances from home and back in one day.

How do the 5 FDI Drawbacks listed on the Africa material in Bb relate to this real-life example of foreign investment?

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