Travels of a T-Shirt Essay

The book Travels of a T-Shirt in the Global Economy by Pietra Rivoli is about the journey of a plain cotton shirt internationally through the economy. This book consists of a plain, cheap t-shirt bought at Wal-Mart, is split into four important parts. The first part is about the source of the t-shirt: cotton. The second part is about the creation process the t-shirt goes through while being created in China. The third part is consists of explaining what happens after the t-shirt goes to the United States and faces the American protectionist policies. Lastly, the fourth essential part of this t-shirt is what happens to the shirt when it is finished in America (or other developed nations).

2a. Consumers would certainly see a hike in prices on the imported product and in turn could affect the consumer’s ability to afford neither the domestic made clothing nor foreign made clothing.

• The enormous surplus of labor in China imperils workers worldwide as international competition puts incessant downward pressure on wages and working conditions, leading the apparel and textile industries to favor the cheapest and most Draconian producers.

If the government enacted a special tax on imported clothing making the selling price equal to the selling price of clothing made in the United States, shoppers would see imported items with much higher prices in discount stores. If the prices of clothing made in sweatshops and in the United States were comparative, shoppers would consider the trade-offs and opt to buy clothing made in the United States for higher quality, loyalty to United States workers, and the health of our economy (Mankiw, 2011, p. 4). Wal-Mart and “big-box” stores that sell so many imported clothing items would see a decrease in sales. Shoppers would choose to buy clothing at stores that sell clothing made in the United States. These stores would see an increase in sales.

The book is broken down into four parts: “King Cotton”, “Made in China”, “Trouble at the Border” and “My T-shirt Finally Encounters a Free Market”. Each part explains a different step of the t-shirt process.

Although globalization allows for most products to be produced at a more efficient rate, it also has the capability to mar the economies of municipalities in first world countries. In Pietra Rivoli’s book The Travels of a T-Shirt in the Global Economy, she discusses the different viewpoints of opposing sides of an on-going battle to reduce the amount of tariffs and quotas put on the textile industries of foreign countries. For decades the textile industry in America has been on a noticeable decline, with outsourcing to third-world countries to blame. Although both faction’s viewpoints on the benefits of such outsourcing, both realize that there is only one way to gain the results they seek; which is to petition to the congressmen, including high ranking officials such as the president, in Washington D.C.

Often, when we think of a t-shirt, not much consideration goes past throwing it on and walking out the door. We discover in The Travels of a T-Shirt in the Global Economy, author Pietra Rivoli conveys the story of a t-shirt she purchased in Florida for just $5.99. Beginning with core element of the t-shirt, she describes the cotton boom in the United States and why we have reigned supreme as the leading cotton producer. She even meets with a Texan farmer who warms your heart from the very beginning of the chapter. Next, the cotton goes on to textile mills and factories, and Rivoli explains the history of the textile industry. With this lesson, she demonstrates how the textile industry boom was a

Esquel, one of the leading cotton-shirt-manufacturers in the world came from China and it supplies lots of clothing brand such as Banana Republic, Tommy Hilfiger, Hugo Boss, Brooks Brothers, Abercrombie and Fitch, Nike, Nordstrom and Lands’ End, in addition to private companies (Plunkett Research, Ltd.). However, due to the high demand of the US apparel stores for Chinese products, the low cost, which was the main reason why raw materials are being purchased from China, have increased. China’s competition is huge, with Vietnam, the Philippines, Malaysia and Sri Lanka also producing material at cheap prices (Plunkett Research, Ltd.). The US apparel stores can instead purchase from these other Asian countries. It is hard to determine the exact number of suppliers in this industry; but, in general, majority of them are in Asian countries that can provide low-cost raw materials to US-based apparel stores. Therefore, the US apparel stores may acquire higher net profi

The last fifty years of cotton's story have involved fewer humans, astounding feats of agricultural research and engineering, and an amazing ability of farmers to band together and own the whole value chain of their crop production. Rivoli marvels that farmers have figured out how to market cotton seeds (they make great frying oil) and stems (feed for cattle), as well as forming collectives to pack, sort, grade, sell and market the cotton and other products. The combination of mechanization, American ingenuity, command of the value chain and agricultural

Lululemon’s ability to source profitably merchandise may be affected; if new trade restrictions are imposed by The United States and other countries where products are produced or sold. These may include additional quotas, duties, tariffs, or other restrictions or regulation. Moreover, China increased in labor cost and other factors associated with production could increase the cost of product. (“Lululemon Athletica Annual Report, 2012”).

I think it also works to undo the notions that China was stealing away all our jobs in the apparel arena, because despite the complex protectionist measures taken, America still lost lots of jobs in the textile industry. The author points out that this is because of technology, and that when it really comes down to it, China is losing their textile jobs at a rate faster than the U.S. did (142). She also goes over some of the unintended consequences of the measures such as increased material costs as a result of the increased import barrier (142). She also suggests in this section as an alternative to erecting trade barriers, to instead compensate workers of the losing industries, known as the compensation principle (151). Lastly, with the lift of the measures and quotas by 2005, there will be a new surge in Chinese goods to America, as illustrated in figure 9.1, page 167. China’s percent increase after release from the quotas will measure some 900%.

According to the case we know that labor costs in china may have a big increase in the next 10 years, from 40% totally to 10% annual increase to even 40% annual increase.

2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.

Rivalry among existing competitors: The apparel industry is highly competitive with a great number of both local and global competitors. As the market is mature, its growth is small. Accelerated growth and expansion to new markets are not easy goals to achieve. The barrier to get out of the industry is quite low for distributors, but high for producers. Most fashion manufacturers moved their production base to low-cost countries like China as wage and raw materials in developed markets like Western Europe are high. Besides, there is no great discrepancy in terms of quality of products, so customers make their purchase choices based on price and brand recognition.

According to the data, the total volume of textiles exported from China has started a continuous rapid growth since 2001 (the year of China’s accession to the WTO) as shown in the first graph above, which roughly