Travels of a T-Shirt Essay

3918 Words Mar 27th, 2013 16 Pages
Travels of a T-Shirt
Prologue

1. Describe Sherry Manufacturing Company-give a description.

• Sherry Manufacturing is a T-shirt screen printing business in Florida.

2. From whom does Gary buy his t-shirts?

• They import their t-shirts from China.

3. Who is Patrick Xu?

• Patrick is a cotton t-shirt producer that exports t-shirts to Sherry Manufacturing.

Chapter 1

1. How big is the Reinsch farm? How many t-shirts can be produced from the cotton?

• 1000 acres

• 5000 lbs of cotton that equals 1.3 million t-shirts.

2. Is a country’s comparative advantage permanent? Give some examples.

• No it is not permanent, unless other countries have the
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• The grade is determined by several different tests such as the cottons lint surface, fiber length, color, leaf content, and fiber fineness. 3. What is the “definitive source of U.S. cotton farmer’s comparative advantage? • Their way of C.A. is the ability to receive help from people in higher places such as political figures. 4. Explain the primary effect of U.S. govt. subsidies. • Increases supply while also decreasing the price. 5. How does the system in West Africa operate compared to the U.S. cotton system? • It is much different than that of the U.S. 6. How does China, India, and Pakistan compare to the U.S. in cotton production?

They are all large size producers but differ in labor and wage standards.

Chapter 4

1. What is the “typical road” of cotton from Texas to America? • The cotton would be picked in Texas, then either transported by truck or train into California where it is then shipped to China. China weaves and creates the shirt which is then exported back to America to be printed on. 2. How does China rank with regards to imports and exports of cotton? • China is the number one importer of cotton and uses its cheap labor to profit off the export of completed shirts. 3. Briefly summarize China’s evolution since 1949. • Managers were seizing large profits from the sweat shops and very cheap labor pay if any. The Nelson’s heard about it and brought it to

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