When it comes to labor rights and working conditions, Bangladesh is the new China. And not in a good way. The South Asian nation has been the scene of two major industrial disasters in the past six months. In November, a fire in a factory left 112 garment workers dead; in April, a factory collapsed, killing at least 433 garment workers and injuring many more. Now companies from Walt Disney (DIS) to Wal-Mart (WMT) have to decide how—or if—to use Bangladeshi contractors and subcontractors to make their products.

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