ntroduction: The purpose of this activity is to reflect on the principle of comparative advantage and better understand how the patterns of global trade are shaped by this fundamental concept. You will watch and read the story of a t-shirt that was manufactured using resources from four separate countries. Next, you will respond to an essay prompt.
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Steps:
- Read the page that tells the backstory to the Planet Money t-shirt project.
- Watch the five part documentary
- Read the stories behind the t-shirt’s different stages of production:
Essay prompt:
A comparative advantage exists when a particular task can be done or a good can be produced at a lower opportunity cost by one nation than by a potential trading partner. When countries specialize in the goods for which they have a comparative advantage, the allocation of resources (land, labor and capital) between nations is more efficient, allowing for a greater level of overall production and income than what is possible without trade.Carefully explain how the the story of the production of the Planet Money t-shirt demonstrates the principle of comparative advantage.
79 comments:
Nevin Thomas
2nd period
The planet money t shirt is a great example of comparative advantage by showing how a shirt is made internationally. It starts from the cotton farms from the US and the US creates the cotton because of its technology and machinery. It then goes to other countries such as Colombia and Bangladesh where it is made into shirts because there is little technology here but more people to sew shirts and finalize them. They are then brought back to the US which produces a higher yield because of the specialization of the countries involved in the process.
Rachel Kuruvila
4th Period
The story of the production of the Planet Money t-shirt demonstrates the principle of comparative advantage. The shirt started off with just cotton. The United States is a great place to produce cotton efficiently because of the climate and vast land. The United States also has advanced technology which allows for a larger quantity of cotton. The shirts were made in other countries like Colombia and Bangladesh because of the amount of cheap labor and resources that are available. This industry in those countries are also good, socially, for the citizens, especially women. The shirts were then sold in the United States, which increased profits for the shirts. The profits were able to be so high because of the fact that each country specialized in a specific task, contributing to the t-shirt in the most efficient way.
Paul Stallings
Period 6
The Planet Money T-shirt demonstrates the principle of comparative advantage by showing how the shirt combines materials and labor from all over the world. The cotton to make the shirt is from Mississippi, rather than some foreign market. This shows that the price of cotton is cheaper and represents a lower opportunity cost than another market. The machines, located in Colombia, Indonesia, and Bangladesh, are cheaper to use in production of the product compared to other markets. This once again demonstrated the principle of opportunity cost which demonstrates comparative advantage. The people in the Planet Money T-shirt production also represent comparative advantage. It is cheaper to use labor in Bangladesh and Colombia, than it is in more developed countries such as the United States. Finally, the shipping method of crates represents the lowest opportunity cost for shipping. This is the definition of comparative advantage, when a good or task can be done at the lowest opportunity cost. All of this leads to the lowest opportunity cost for the consumer, and thus represents comparative advantage.
Ashish Jain
4th period
The production of the planet money T-shirts can relate to the idea of comparative advantage by explaining how each country does their part to make the shirt most cost effective. Cotton is mainly grown in the United States because of the land resources that the US has and because of how technologically advanced the US is. Once the cotton process is completed, it is all sent to countries like Colombia and Bangladesh(mentioned) where the shirts can be produced for a low price due to cheap labor cost in those countries. Once the shirts have been made, they are shipped back to the United States and sold at a price much higher than what it costs to make it. Therefore, the company will get lots of profit off of these shirts because each country did their part in specialization by getting supplies for the shirts, making the shirts, and finally selling it to consumers.
Patrick Stallings
Period- 4
This story perfectly represents the idea of comparative advantage. Our journey starts in the United States where cotton is able to be produced in large quantities for a low cost. This is due to the amount of technology we have. It allows us to produce our cotton for the lowest price. Then our cotton is exported to countries with weaker and smaller economies. For example, it is shipped to Bangladesh and Colombia. These countries are a great environment to produce the shirts in. There is a mass amount of cheap labor available and ready to work. They produce the shirts at a much lower cost than a company in the United States would. Finally the shirts make it back around to the United States where they are sold for an increased profit. Our consumers spend money on a shirt that has traveled all around the world. This creates a higher profit because each country specialized in a single part of the production. It allows for the shirts to be made for the cheapest amount and very efficiently.
Aadithya Srivatsav 4th
The Plant Money t-shirt project demonstrates the idea of comparative advantage in an excellent light. USA is better at exporting and producing cotton due to the the advanced technology, which helps produce copious cotton to export. The cotton is then exported to less developed countries such as Bangladesh, which has a comparative advantage in labor due to lower wages in the country. Thus, more employees are hired in Bangladesh and that leads to higher production of shirts as more and more workers can be hired. After this process, the shirt is sold in America as America is the among the best markets to sell and gain a high profit margin out of. The shirt goes through many processes and is produced in the cheapest possible way through the allocation of resources worldwide.
Laura Luo pd 4
Indeed, Plant Money t-shirt project utilizes the concept of comparative advantage by allocating its resources in order to lower the opportunity cost it is needed to produce the shirts.
One, the production of cotton was primarily produced in the United States because the cotton industry is regarded as a high tech product. The United States has the infrastructure to create high quality cotton that many other countries so desire. In addition, because the United States government places so much importance into protecting the cotton farmers with subsidies, growing cotton here would produce a lower opportunity cost than any other places.
Second, the production of fabric was made in such places like Indonesia, Colombia, and Bangladesh with the help of many machines. Ultimately, the yarn produced into fabric was made by machines because, like Coke, there is a secret formula to it. The fabric must have specialization in order to be sold. Thus, it was ideal to have the capital necessary at certain nations in order to produce these high quality fabric.
Third, because of location, the production of the shirts was made primarily in Bangladesh and Columbia. These areas demonstrate the idea of comparative advantages because their labor produce a lower opportunity cost due to the worker's low wages. Simply, more shirts can be made at a small price for more quantity.
Lastly, shipping internationally effectively utilizes comparative advantage, where it only costs pennies (7 cents) of one shirt! Shipping internationally and allocating our resources efficiently to other nations was one of the reason why our shirts are produced the cheapest way possible - to allow a greater level of overall production and income than what is possible.
Jacqueline Gann
Period 2
The Planet Money t shirt is an excellent example of comparative advantage because it shows the combination of materials and labor from across the globe. The cotton grown in the US holds a lower opportunity cost than if it were to be produced an another location on another market because of our climate and technology. The machines in Indonesia and Bangladesh that make the yarn and fabric for the shirts are cheaper to use in those countries than if they were to try and do the same thing in another place showing a comparative advantage. In Bangladesh and Colombia the labor is cheaper, by comparison, than that of other countries. The last step, shipping, shows the clearest example of comparative advantage because this step has the least opportunity cost. In conclusion, all of these steps have positive impacts on those producing the shirt and lead to the lowest possible opportunity cost for the consumer.
The making of such a T-shirt demonstrates the Principle of Comparative Advantage by not just being made in one country. People would think that a U.S. company's T-shirt would be made in the U.S., but the U.S. has higher industries than nations like Indonesia or Bangladesh, so it's not efficient for the U.S. to make the whole T-shirt; otherwise, it would be stuck in the 1800s. Thus, the U.S. still carries its boom for cotton, so it is a major export because it is a great advantage for the U.S. at a low cost, so might as well send it to garment nations that can do the foundation of the product if they don't have the resource for it. This product traveling all over the world to be made in parts through a cycle conveys that the global economy is growing because no one nation is only surviving off itself; packs survive longer because they each member uses their strengths, not all of their traits. Thus, Bangladesh sews the T-shirt, the Jockey company supervises the order, the U.S. makes the cotton as precise as possible with their great ease because of their advanced technology, and it all comes back to the demand from this great supply. If Bangladesh really does try to advance their technology, then who would make the world's T-shirts? Clothes could never be an efficient product if every nation is modernly advanced. The Principle of Comparative Advantage requires a balance of weak and strong because it brings out the best in them; otherwise, we would all be unfulfilled. Cheap is close enough to the favored free anyways, so might as well strive for it without a wasteful sacrifice when a team could work together without every nation hurting itself in isolation. This process allows everyone to have meaning because they can be useful. Sharing is caring when only efficient.
Amy Krauhs
Period 4
The adventure of the Planet Money T-shirt explains the concept of comparative advantage at each of stage of the manufacturing process. At the beginning of the procedure, cotton is selectively picked from the United States. It isn't grown in a country closer to the the next step in the production process because the Unites States makes cotton at a lower opportunity cost through its advances in technology. Then the yarn is taken to Indonesia to be spun by machines which are really expensive but are productive because they spin the yarn flawlessly all year long with little or no human contact. This once again this demonstrates the principle of comparative advantage. Although the factory is expensive, it is so productive that the marginal benefit dismisses the marginal cost. Then the fabric is taken to a country like Colombia or Bangladesh to be made into t-shirts. It is made in a low-wage country to decrease the manufacturing cost and increase profit. Finally, the shirts are then brought back to the U.S. to be shipped back to the consumers through crates which are more efficient than a airplane.
Steve Philip
6th Period
The Planet Money t-shirt is an example of comparative advantage because each step of the t-shirt making process to place some where where it is economically more efficient than the next. The cotton was cheaper in america so it was produced here. It was then shipped of other countries to spin it at a more cost effective and productive way. Then the ship it to Columbia and Bangladesh to be made were labor is cheap. And finally it is shipped back to the U.S. and is sold.
Cecil Sabu
2nd Period
Comparative advantage is clearly demonstrated by this story of how Planet Money T-shirts are made. It shows how t-shirts are created with the help of people all around the world. By splitting up the jobs involved in making the t-shirt, the U.S. is able to make the t-shirts with more efficiency. Since the U.S. has desirable conditions for growing the cotton, most of the cotton in the world in produced here. Then, the cotton is sent to places like Bangladesh, Colombia, and Indonesia to be manufactured into the t-shirts because they have factories, machinery, and more people to do the required labor. Once, the t-shirts are made, they can be shipped to the U.S. and sold for much cheaper prices than if they were made completely in the U.S.
Christian Do
Period 3
Such as how wooden pencils are made, as the raw wood is harvested in one country, cotton is harvested in the US for the planet t shirt, and is then shipped off to another country to be manufactured. This specialization allows for the highest productivity at the lowest price because some countries have cheap labor where the production of the shirt can yield profit even with all the employees and shipping costs. Of course, the United States can do all steps of production, however the price of the t shirt will be a lot higher due to that wages in the United States is a lot higher than other countries therefor, the company has to profit, and so, they have to up the price of the product. This process is a great model of comparative advantages showing how efficient and profitable the system is.
Christine Nguyen
period 6
The production of Planet Money t-shirts demonstrates the concept of comparative advantage very clearly through its process. The cotton is grown in the U.S., which is then sent to Bangladesh to be processed and sewn, and then eventually to Columbia where the shirts are completed as the final product. Each country specializes in one particular stage in the process of the shirt, whether its growing the raw material or processing the material or even putting the final material together into the final product. This allows for the company to have a comparative advantage because the company optimizes its production at low costs by having it done in other countries on a mass production scale, ultimately yielding a greater profit/income for the company.
Alyssa Wilson
6th Period
Planet Money t shirts perfectly exemplify the concept of comparative advantage through their process of international production. This process begins in the US with the creation of cotton with sophisticated tools and machinery, it then moves to Bangladesh to be processed, and then Columbia to finish off the tshirt. The cotton is ideally made in the US because, here we have the technology and the land to produce cotton in vast amounts without any unnecessary strain on our economy. On the same note, it is beneficial to send the cotton to other countries to be processed and manufactured into a t shirt, because that is where there are resources available for making the product and doing so without overstretching any resources. After the complete process, because each component of the tshirt has been made in a place where it makes the most sense in terms of resources, the price of the shirt can be lower and therefore more available to consumers and being more profitable for the company.
Planet Money t-shirt is a example of comparative advantage, reason being that each step of the t-shirt making process is in a place where it would be economically more efficient to produce. For example, it is easier for the United States to supply cotton to the other countries because they are more technology advance which has a big role in cotton production. So it would cause them less to produce cotton rather than Bangladesh; Bangladesh would probably have to spend a lot more money if they wanted to produce cotton. The tshirt making in Bangladesh and in Columbia demonstrate that they are little less advance in machinery and need the help of many individuals to make a tshirt. Also, the economical necessity that people need show how some factories in a way help the people that work for them. The shipment is also a very big important step, without the containers trade would probably be chaotic. The interesting part of all the videos was the chance of being able to see the different people in the world in a way working together for one task which is pretty darn good.
Jenifer Galan
4th period
The production of the Plant Money t-shirt demonstrates the comparative advantage principle by describing the global process that goes into making a shirt. First, it starts in the US where cotton is grown. The US is the major supplier of cotton around the world because it has the right kind of land and soil as well as advanced technology when it comes to growing cotton. Next, it goes to Bangladesh where the cotton is spun, washed, and dyed. Bangladesh has one of the lowest minimum wages in the world, thus it can specialize in a part of the t-shirt process. Columbia has a more advanced economy than Bangladesh and they put the t-shirts together. Workers in Columbia have a minimum wage 3x higher than that of Bangladesh, but it still produces shirts at a lower opportunity cost than a potential trading parter would. Finally, due to innovations in shipping and transportation, apparel companies are able to manage global supply chains because shipping costs have lowered and the transport process has dramatically sped up. Thus, comparative advantage is demonstrated by Planet Money t-shirts because of the allocation of resources between nations is highly efficient allowing for greater overall production and profit for these nations.
Nina Jiang
Period 4
Nima Faegh
4th Period
I think that the planet money t-shirt is a good example of comparative advantage, because the process of making the shirt takes resources and labor from around the world. Because the materials are gathered and made in Mississippi, and then the labor to create the actual shirts is in Southeast Asia, South America, and South Asia, it shows how opportunity cost ties in with comparative advantage and allows us to see it in a real life application.
The journey of a Planet Money t-shirt is a perfect example of how countries use comparative advantage to their benefit. U.S. produces the cotton necessary to make shirts at a cheap price because the government subsidizes the agricultural industry, thus increasing supply without increasing prices. The cotton is then sent to countries like Bangladesh, Indonesia, and Colombia which manufacture the t-shirts. These countries are viable options for manufacturing t-shirts because there are a lot of people who are willing to make t-shirts and it doesn't cost as much to make the shirts as it would in countries like Hong Kong or Turkey. After the shirts are manufactured, they will be shipped back to the U.S. through shipping containers at an extremely cheap cost and then sold to the consumers.
This story of the production of the Planet Money t-shirts clearly demonstrates the principle of comparative advantage as different nations are set to do particular tasks to produce certain goods in the benefit of a lower opportunity cost. Because of its suitable climate and technology the US produces the cotton. While Bangladesh has one of the lowest minimum wages globally, the large workforce is more than enough to do the labor, of spinning, washing, and dying the cotton. Finally, the cotton is sent to Colombia where they are made into fully wearable shirts and then distributed to the people. As you can see each of the countries specialized in accomplishing the tasks that were of lower opportunity cost, thus making it more efficient and generally better in the overall production of the shirts.
Sherin Johnson
Period 6
Manon Hughes
6th Period
Planet Money T-shirts demonstrate what comparitive advantadge can accomplish. The tshirts begin as cotton from the USA (where cotton is most efficiently produced due to technology advantadges and vast land). The. The cotton is shipped over to countries with smaller and not as developed economies such as Bangladesh and Colombia. The tshirts are produced in countries such as these because they have vast amounts of readily availed cheap labor, making the production of the shirts cheaper to accomplish. Then, the now completed shirts are imported back into America where they are sold for maximum profit. This profit is achievable because each step of production was performed in the country that could do it most efficiently at the lowest cost possible. The Planet Money Tshirts demonstrate the idea of comparative advantadge and specialization.
The story of the Planet Money t-shirt is a good example of comparative advantage because it shows how various countries’ functions come together to produce a shirt. First, the cotton needed to make the shirt starts off in Mississippi, USA. Since the US is technologically ahead, it can produce large quantities of cotton. Then, a factory in Indonesia spins the cotton into yarn. Next, the yarn goes to Bangladesh to be made into a t-shirt. There many girls and women work for their bread and butter hoping for a better life in the future. After these shirts are made, they are shipped in containers to the U.S ports again. Finally, these shirts are enjoyed by people like you and me every day.
Renuka Gondi
4th period
Jocelyn Dang
6th Period
The story of the production of the Planet Money t-shirt exhibits the principle of comparative advantage by highlighting the different countries that are responsible for key aspects of the making of the t-shirt. The specialization of a certain good and efficient allocation of resources is displayed through U.S, Indonesia, Bangladesh, and Columbia. To begin, the U.S. is responsible for the cotton production because of their high level of production through efficient use of technology, GMOs, and government support. These aspects put the US ahead of other countries and lead to a cheaper cost of production with a higher income and production. Indonesia, on the other hand, has an efficient labor force that produces yarn with precision and consistency that no other country can compare to. By working 361 days a year, their production levels are very high, resulting in their specialization in that particular part of the t-shirt industry. Columbia and Bangladesh are responsible for the actual making of the t-shirts because their cheap labor wages are unmatched by any other country. Thus, by allocating the millioins of people that make up their labor at such a low price, those countries are able to produce with a lower opportunity cost than other countries. The process completes the circle by selling the tshirts to the US, and all of the income is split between the different aspects of the t-shirt industry. Thus, the process of the Planet Money t-shirts demonstrate comparative advantage by showing the strengths that each country mentioned have, which cause them to have high production levels, while sacrificing much less than the other countries. Their specialization make the most out of their resources to make a good at the lowest opportunity cost possible, thus making trade efficient.
Tia Lal
Period 2
I never thought of how involved the world is in making a t-shirt. This one product connects people from the cotton fields of Mississippi to the factories in Bangladesh. The production of the Planet Money t-shirt is a good example of comparative advantage. The US is specializes in making cotton because the opportunity of making cotton in the US is less than the opportunity cost of making cotton in Bangladesh or Colombia. This is because US has the right climate, soil, and land for cotton growing. The US also has many technological advances that increase yields. Bangladesh and Colombia would have to allocate more of their resources to producing cotton than to make t-shirts. Through comparative advantage, both parties benefit.
It's aboslutely amazing what goes into making something that seems so simple. The way everything comes together and in the end makes a useable product astounds me. This clearly shows the uses of comparative advantage in worldwide production. The US creates the cotton, which it is good at doing, then another country like Bangladesh or Columbia manufactures it. The efficiency is increased as well as the output because niether country is wasting resources on things they would struggle at doing.
Jasmine Luke
6th period
The making of the Planet Money T-Shirt represents the concept of comparative advantage by showing every aspect of the making of a shirt in the cheapest way possible. In total, the cost of producing a shirt came down to 12 dollars, even though it took people all over the world to make such a product. This is because certain countries were allocated a particular aspect in the making of the shirt. Columbia and Bangladesh have a comparative advantage in cheap labor. Much of the raw cotton needed is produced in the United States because of our advanced technology and lack of laborers needed. The cheapest of all tasks is transportation where there is a huge port in Miami. All together, all these process allow certain countries to have a comparative advantage in industries and goods are produced at the cheapest price possible.
Kimberly Mendez
Period 4
The production of Planet Money’s t-shirts perfectly epitomizes the concept of comparative advantage by demonstrating the global participation needed in order to produce a t-shirt. Starting the long assembly line is the United States with the assembly of cotton. It is ultimately convenient and efficient for the United States to produce cotton due to its abundance and technological advances aimed at making cotton picking a simple task for machines. Following the assembly line in completely different continents are Bangladesh and Colombia. While they may lack advancements in technology, they do have copious people willing to work which results in lower production cost. In addition, the shipment containers also follow the comparative advantage principle by increasing the amount of products transported while decreasing the final cost. Finally, in a full 360, the assembly line returns back to the U.S due to the fact that the shirts will be monetized at a higher price which increases profit.
Elyssa Buntzel
4th period
The production story of the Planet Money tshirt successfully demonstrates the comparative advantage principle by showing how many countries can specialize in one thing, then come together to make one product. The US produces the cotton due to their advanced technology and expansive lands. This cotton is then sent to other countries, like Colombia and Bangladesh, where the amount of cheap labor is abundant. For women and other social parts of society, this industry is able to flourish here. When the shirts were then sold back in the US, the profits were high due to the specialization of each country involved in the tshirt production, or the production of the tshirt in the most efficient abilities of the countries.
The planet money t shirt like many other t shirts in the united states are produced in other countries. This is due to comparative advantage. The U.S is abundant in cotton but it would be expensive to produce here since our country's wages are so high. So, the materials are sent over seas to countries like Bangladesh and Colombia where wages are much lower than ours. Thus, this leads to a cheaper cost due to the number of workers and the small wages. It is then shipped back to us in a shipping container and the overall price is cheap due to the services provided by these foreign countries. Overall the specialization of men's tshirts in bangladesh, women's tshirts in Colombia, production of cotton in the Mississippi cotton farms lead to the most efficient t shirt.
-Amitabha Mitra
6th Period
Annie Jiang
Period 6
The Planet Money T-shirt project displays the principle of comparative advantage through the certain areas and tasks that the t-shirts are made. Mississippi is the first site that grows the cotton, displaying that the price of cotton is cheaper to produce here rather than spending more in another country. The machines in Colombia and Bangladesh have a lower opportunity cost for production than another market. The people that produce the clothes also show comparative advantage because the labor in other less developed countries is cheaper than to pay people to make them in our own country. Lastly, the shipping method of crates displays the most ideal definition of comparative advantage because it portrays crates as a task that is carried out in the lowest opportunity cost.
The planet money convey the principles of comparative advantage. Cotton is produced in US because we have a vast amount of land and new innovative technology. it is then send to places like Bangladesh and
Reeba Mathew
6th period
Colombia to be made into shirts because of the cheap labor available. this is comparative advantage because the opportunity cost of making the shirts in Bangladesh and Columbia is lower than making it in US. Finally the shirts are send back to the US where companies sell the shirts for more money that it cost to make the shirts.
Joshua Roy
2nd Period
This Planet Money T-shirt represents the process of comparative advantage because it shows the different combinations of labor and materials used globally in order to create the given product, T-shirts. The cotton used is made in the United States due to the technological advantages we have, allowing us to produce cotton at minimal expenses and giving us comparative advantage. The cotton created is then exported to nations that are less developed such as Bangladesh, Indonesia, and Colombia. These nations are ideal areas to create T-shirts due to the low wages given to a large number of employees, thus giving them comparative advantage. The US also saves money by getting these nations to create the shirts rather than other US companies. The shirts are then sent to the US to be sold, leading to higher profits earned due to the distribution of roles (specialization) between the US and other countries.
Celine De Leon
2nd Period
With the example of the production of Planet Money t-shirt a demonstration of the principle of comparative advantage occurred. This example demonstrates comparative advantage by first starting off with the cotton that is located in Mississippi. The United States produces cotton in the most efficient way due to its land and climate. Since the cotton being used is from Mississippi the opportunity cost is lower. As well as the other countries that are use machines to produce the shirts. With the labor in foreign countries it saves more money than labor in more developed countries such as the United States. With theses shirts being sold in the United States more profits are being made with the help in the specialization of countries in specific countries.
I believe that the planet money t-shirt is a great example of comparative advantage. Each stage of the t-shirt is done in the country that does the best part. The cotton is grown in the USA because of the technology advances. The seeds have been genetically altered to make the cotton stronger and it takes minimal workers because of the technology behind the advance picking tractors and the superior mechanical grinds. Then to Indonesia, Bangladesh, and Columbia to where the raw cotton is transformed to yarn then into fabric which in turn is used in the basic t-shirt. These countries have the workers and the cheap labor to mass-produce the shirts. We provide the work for these countries so they can survive and earn money to live. Then the shirts are sent back to the US in containers that cost a minimal for each shirt to make its way back to the US. Then the shirts are sent to the printer to print the image on the shirt where the technology is advanced to print the shirts with good quality and minimal cost. Then they are sent to every one who orders a shirt through the US postal services. Each step is sent to the area where it can be done the quickest, cheapest, and has the resources to complete the task.This is the a fine exapmle of the definition comparative advantage, when a good or task can be done at the lowest opportunity cost.
Jonathan Winfiele
2nd
Carlo Torres
2nd Period
There are features of comparative advantage when Planet Money began producing their Tee Shirts. Looking at the Cotten from the US, their video explains how the US has been able to make more cotton than anywhere else due to advantages in technology and genetics in which case the US has an absolute advantage over everyone. Comparative advantage comes into the picture when the cotton was exported into two countries, Columbia and Bangladesh. These two countries had cheap labor, yet the workers from Columbia had a higher amount of income than Bangladesh, meaning that Colombia is able to produce more shirts in order to have that higher income for their workers. It is remarkable to think that there is specialization in the production of a shirt, a simple shirt that many wear.
An example of comparative advantage is the planet money t-shirt. The raw material, cotton is grown in the United states. This is the cheapest place for the cotton to be made because of the land and whether. Also because of the high technology of the United States.
The cotton is then shipped overseas to factories where the cotton is turned into fabric. Next the fabric is sent to factories in Colombia and Bangladesh. This is beneficial because of the cheap and abundant labor. The shirts are then sold in the united states because there they can make a higher profit. This is the most efficient way to make a simple t shirt.
George Waterous
period 4
An example of comparative advantage is the planet money t-shirt. The raw material, cotton is grown in the United states. This is the cheapest place for the cotton to be made because of the land and whether. Also because of the high technology of the United States.
The cotton is then shipped overseas to factories where the cotton is turned into fabric. Next the fabric is sent to factories in Colombia and Bangladesh. This is beneficial because of the cheap and abundant labor. The shirts are then sold in the united states because there they can make a higher profit. This is the most efficient way to make a simple t shirt.
In Planet Money's t-shirt production, it begins by first getting the cotton for the T-shirt in the United States. The U.S. has the comparative advantage against every other country in the world due to it's rich land and good climate that makes cotton growth as efficient as it can be. After the cotton is grown and picked by the American farmers, it is shipped over to factories that condition the cotton and make it into yarn and fabric. The fabric is then shipped to places like Colombia and Bangladesh where there is an enormous amount of cheap labor. Unfortunately, cheap labor in these production countries is one of the country's most important resources, where they have the comparative advantage against countries like the U.S. Finally, the T-shirts come back to the U.S. and are sold for a profit. As we can see, the company that is responsible for the product maximizes its profits because it is using each country's specialized activity. Each country specializing in the area at which they are most efficient in allows the maximum amount of production and profit to be available.
Jeffrey Zhou
6th
The Planet Money T-shirt example shows exactly what occurs when comparative advantage is put into place. The Jockey company decided to create the squirrel shirts and they followed the line of how the shirts were created. The cotton to make the shirts were created in the US because its quicker to be made here due to the technology and the GM cotton. The cotton is then shipped to other countries that turn the cotton into yarn which is then able to be made into shirts. The distribution of these types of work to different countries that specialize in each duty is called specialization. Each country that specializes in a duty gives up the least of what it can make and makes the most of another. After the yarn is taken to countries such as Colombia and Bangladesh, the T-shirts are created and then sent in big boxes on ships to the USA where the shirts are distributed and sold to the consumers.
Muizz Soomar
2nd Period
Troy Lilly
6th period
A great example of comparative advantage, the planet money t shirt uses labor and materials globally to create it. The United States, being a perfect place to maximize cotton growth, starts off by growing great quantities of the cotton. The cotton is then sent off to other countries, such as Columbia to maximize their cheap labor and resources. The shirts are then sent back to the United States for maximum profits. The profits were extremely high due to the comparative advantage used. Each country used their best resource for specialization in production, allowing the most efficient t shirt to be created.
Luke Emery
Period 6
The Planet Money T-shirt story is a prime example of the comparative advantage concept. When Jockey decided to make the shirts to show the intricate process of making a shirt, they showed all of the different people and resources used. The cotton is grown and processed from the U.S. because they have the climate, land, and technology necessary to produce a large quantity of cotton at cheap prices. The cotton is sent off to different countries who specialize in refining the cotton into yarn and fabric materials. This is sent to countries such as Colombia and Bangladesh, where a large number of people, mainly women, are willing to make the shirts at a low cost. The large resource of people and the number of factories in these countries create prime conditions for them to produce the shirts at a low cost, The shirts are then shipped back to America, where a large number of people are willing and able to buy the shirts. This entire process of trade and specialization creates the conditions for maximum profit.
Cameron Molfetto
4th Period
The production of the Planet Money t-shirt is a great demonstration of the principle of comparative advantage. The production of these shirts consist of many different countries. The cotton used to make the shirts is from Mississippi. Then, the machines are in Colombia, Indonesia, and Bangladesh, because more can be produced at a lower cost. Finally, the shirts are sold in the United States because it is the opportunity to make the most money.
Lindsey Jones
2nd period
The four part story of Planet Money T-Shirt demonstrates four POVs relating to the production of a T-shirt: cotton, machines, people, and boxes. The change in cotton labor drastically changed production output without most even knowing it. Before having technology pick, sew, and dye cotton, the South insisted on the fact that a huge number of people will bring about a Cotton Empire in the area. Well, they were wrong. Technology will always work at a faster, and perhaps a more efficient pace than humans. Technology does not have to rest or encounter flaws as much as humans do. Therefore, industrial nations, not developing nations, have a much better comparative advantage towards technological produced products. Where people take all day just to peel off the hurtful layer of a few pieces of cotton and take all day just to make one or two outfits, technology tripled the production.In places like Bangledesh and Columbia, where human labor is much more depended on when it comes to clothing, the people there live in deplorable conditions. Many advanced countries actually buy clothing from developing countries because the prices for the products are much cheaper. Despite the fact that countries like the USA purchase products from countries that are cheaper, from what Jasmine and her brother go through everyday, these developing countries seem to not have the comparative advantage.
Lynnie Dickson
Period 6
The Planet Money T-Shirt showed an amazing example of comparative advantage as its shirt was shipped from on country to the next based on it specific skills. Because America specialized in producing cotton, they were given the role of production while Indonesia turned it into yarn. There was also the example of opportunity cost through Bangladesh. The workers there are paid less, so it costs less to produce more clothes.
Tiffani Weir
2nd Period
The story of the production of the planet money t-shirts is an excellent example of comparative advantage, because is shows that the production of one t-shirt goes through many countries and people in order to be made efficiently. Because of things like subsidies, technology, and climate; the US is the best place to produce the cotton for the shirt because it uses it's resources most efficiently. Just how it is cheaper to get labor in Bangladesh due to the 4 million of their population who work in the factories that formally make the shirts.
Todd Podbielski
6th
In the journey to make the planet money t-shirts we see the raw materials, cotton, made in a suitable climate in Mississippi, then to countries like Bangladesh where the working population is very large. Because workers in these countries are use to more deplorable living conditions because they are not paid much by factory owners. Thus making t-shirts, cheap and quick to make a very large amount.However there is an issue between countries that hurt workers because countries are worried that western markets will go to the country ht has the cheapest shirts dragging down the salary of workers.
Justin Freker
Period 4
During the production of the planet money t-shirts a great example of comparative advantage is being shown. The United States offers the best place to get the cotton for the t-shirts because we are one of the largest countries in the world with vast land to grow cotton on. Other countries also get involved in the production process by doing what they do best, and in countries like Columbia, it is labor. These countries only specialized in what they did best and because of that the highest profit was being made thanks to comparative advantage.
Divya Joseph
6th period
The making of the Planet Money T-Shirt represents the concept of comparative advantage by showing how they found every way to find the cheapest way out of making the shirts. The total cost of all the shirts came down to really cheap price because of the different countries they went to to make the shirts. Some countries however were more expensive in some aspects of making the shirt but that's how comparative advantage works.
Samantha Fonseca
4th Period
The production of the Planet Money t-shirt is a great demonstration of the principle of comparative advantage. The story shows how different steps of the process of making the shirt took place in different countries where they specialize in a specific step in the whole process and make the production of the t-shirt more efficient. The production of the shirt starts in Mississippi where the cotton is grown. It is grown in the US because there is a lower opportunity cost to make cotton with the technology, machinery and amount of land that the US has. Then, the cotton is shipped to other countries, such as Colombia and Bangladesh, where labor is plentiful and cheap, making the opportunity cost very low. Finally, the t-shirts are shipped back to the US where the t-shirts are sold for more money than was needed to make the shirt. All of the countries involved allocated their resources, making production more efficient and opportunity cost low, which demonstrated the principle of comparative advantage.
Akintunde Sowunmi
4th period
The plant money T-shirt and the process of making each one demonstrates the comparative advantage concept. The cotton, grown in the U.S., shows that it is a specialized crop in the U.S. because of our vast land and our immense supply of it. The cotton is then sent to countries like Colombia and Bangladesh so they can sew and process the shirts. The reason why the cotton is shipped all the way across the world is because of the access to cheap labor which the countries specialize in. In short, companies in U.S., particularly the company behind the plant money t-shirt, benefited greatly because they produced a great amount of shirts and profited greatly because of this specialization process.
Timothy Krauhs
Period 6
The tale of planet money t-shirt is true example of comparative advantage by showing the shirt making process across the globe. This proved by the cotton which has always been produced in the U.S. because the great technology advancement in farming. Then sent to lower developed countries like Colombia and Bangladesh were there made into t-shirts by the amass amount of seamstresses. However, after this there sent back the U.S. were a larger amount of profit because the specialized work of higher and lower developed countries in the process.
Sylvester Inyang
2nd Period
First in the article it talk about there use of a squirrel as a design and that was because it "is a visual pun a reference to the phrase “animal spirits” made famous by the economist John Maynard Keynes." and Keynes is the one who created the principal of comparitive advantage. And how diffrent materials from all over the world create one thing if with out free trade some thing simple like a t-shirt could cost way more than what they cost now
Jennie Chen
Period 2
The principle of comparative advantage shown through the making of the planet money t-shirt displays the benefits when different countries work and trade together. The beginning of the shirt starting with cotton grown in the US is more beneficial than any other country growing it because of their advanced technology. This advancement causes a larger quantity to be produced for the making of fabric. The cotton being spun into thread and later made into shirts, in countries like Columbia and Bangladesh, are due to the cheaper labor that can be used. The amount of available hands willing to work for the little pay per day is benefiting the production of the shirt. The shipping containers then show the efficiency of around the world interactions. The cost of shipping one shirt only cost pennies and the specialization of the different aspects of the shirt making process is cheap and efficient with multiple countries contributing to the product being made.
Zoheb Hirani
Period 2
It's interesting how a common t-shirt is made through resources of several different nations. Firstly, the cotton must be grown for the t-shirt on a cotton farm, often advanced through incredible technology and interestingly enough, pushed forward by government subsidies. Because these countries either have advanced technology or wide amounts of cheap labor, their opportunity cost for making cotton is so much lower than other countries. Next machinery must be used such as spinnery factories. Countries with factories like this need well educated labor to handle the machinery as well as constant electricity. Thus, countries with this often are comparitively advantageous over other countries in the machinery aspect of cotton. The reason a t-shirt is made in so many different places with different production processes is that one country can specialize in one part of it far better than another country. Thus, by producing the t-shirt this way, each country increases overall output.
Also, the part about the shipping container being cheap was actually extremely interesting.
The production of Planet Money t shirts is a good example of comparative advantage.It shows the life cycle of a tshirt. The U.S specializes in making and growing cotton while it is made into actual fabric and clothing in countries like Colombia or Bangladesh because of the abundance of cheap labor in these places. That is why the cost of making a shirt in multiple countries is lower than making it all together in one country because if all the steps taken to make a shirt were done in one country it would take away resources from another product making the opportunity cost way higher.
Ryan Igbinoba
Period 4
Brayden Theriot
4th Period
The process of a Planet Money t-shirt is a great example that shws directly how countries use comparative advantage to their benefit. U.S. makes the cotton needed to manufacture shirts at a cheap price because the government subsidizes the agricultural industry, therefore increasing supply without increasing prices. The cotton is shipped to countries like Bangladesh, Indonesia, and Colombia which make the t-shirts. These countries are reasonable options for manufacturing t-shirts because there are a lot of people who are willing to make t-shirts, and it is cheaper option. After the shirts are made, they are shipped back to the U.S. at a much cheaper price for consumers to purchase.
John Harris
2nd
The production of the Planet Money t-shirt shows comparative advantage through the U.S. and it's production of cotton, and Columbia and Bangladesh through their supply of underpaid labor. The cotton grown to produce the shirt is genetically mutated in order to produce more in America and through expensive machines and a land and climate that can easily grow cotton it is grown here for a cheap price. In Bangladesh and Columbia multibillion dollar companies can penny pinch by taking advantage of the vast amount of labor and pay next to nothing in order to squeeze out as much profit as they can by then selling the product to american consumers for inflated prices.
Justin Hoang
Period 6
The Planet Money T-Shirt demonstrates the principle of comparative advantage by an example of how cotton is cheap in the United States. This is due to the fact that there is a large quantity of cotton because of technology and machinery. The United States profits are increasing because T- shirts sold to poor countries like Bangladesh and Columbia do not have advanced technology like the US. So they rely on hand sewing machines.
Yassin Bennis
Period 2
Planet Money T shirt shows how this specific shirt puts together items and work from all over the word. The cotton is made and sent from Mississippi. They use machinery from 3rd world countries such as Indonesia and Bangladesh. They end up benefiting by this because of less opportunity cost and in the end profiting from it.
Rizwan Khan
6th Period
The Planet Money T-shirt verifies and shows the principle of comparative advantage. It all starts off the production of the t-shirt which is made of cotton. After the production through cotton is complete, the t-shirts would be shipped to countries such as Columbia and Bangladesh for a cheap labor cost. Then once the shirts shipped back to the United States, it was sold for a higher price. The profit was so high that It showed the principle of opportunity cost and then proceeds to the principle of comparative advantage.
Minh Le
4th Period
The Planet Money T-Shirt is a prime example of Comparative Advantage. The cotton that is used in the production of the shirt comes from the United States because of the availability of machinery and terrain that allows cotton to thrive. This cotton then makes its way to Colombia and Bangladesh where it is processed into shirts. These shirts are then transported back into the US in order for distribution because of the large market within the US. Countries do what they do best, moving the economy along one shirt at a time.
Karen George
Period 6
The Planet Money T-Shirt exemplifies comparative advantage by demonstrating how the making of the shirt involved the combination of production in different countries. From cotton, to machines, to labor and shipping, each country has its own part. In the U.S. it is cheaper and more efficient to grow and manufacture the cotton that is in the U.S. than anywhere else. The temperature in Mississippi makes it possible for the massive growth of cotton. In addition, the machines in Bangladesh, Colombia, and Bangladesh manufacture the fabric and cotton. They use these machines in these countries because the total amount of production is less expensive than the amount it would cost to manufacture the shirts in the U.S. Furthermore, labor in Bangladesh and Colombia is less expensive than the U.S. because the cost of living is less expensive and the workers do not need as much money. Finally, the shipping cost less than a fraction of the amount of the design for the shirt because of where it was sent from and the way they are shipping it. Each and every aspect of the making of this shirt exemplifies comparative advantage as it is cheaper and a lower opportunity cost to make and manufacture parts of the shirt in different countries.
Joshua Joseph
6th period
The production of Planet Money t-shirts demonstrates the concept of comparative advantage very clearly through its process. The process to make the shirt takes labor and resources from all across the world. The machines in Colombia and Bangladesh have a lower opportunity cost for production than another market. Some countries however were more expensive in some aspects of making the shirt but that's how comparative advantage works.
Guadalupe Alvear
Period 2
The Planet Money t-shirts show demonstrates comparative advantage perfectly. From the cotton grown in the United States, to the machines in Bangladesh and Columbia spinning and changing cotton into workable material, to the assembly of the shirts, then the shipping and distributing all in different countries.
I believe the planet money t-shirt makes it obvious how well comparative advantage can work in this day and age in this world. How easy is it to ship cotton (which is specially made in the U.S.) to countries to have the raw material made into yarn then cotton which is then shipped to Bangladesh or Columbia to be made into T-Shirts. I think that's amazing how each country has a role in making a t-shirt. It makes me wonder what all countries are involved in the process of other clothing lines. The planet money t-shirt displays comparative advantage at its finest and hopefully other fields are also taking the hint and thinking about comparative advantage for the future.
Jacob John
6th Period
The Planet Money Shirt is a great example of comparative advantage by demonstrating it's definition by using materials and labor from all around the world. The cotton was made in the united states because of the lower opportunity cost for the production of cotton. The production of fabric was made in places like Indonesia, Colombia, and Bangladesh because specialization works to these countries advantages in this scenario. Shirts were made primarily in Bangladesh and Columbia because of the low opportunity cost since workers are paid very little. This specialization grants for companies to make more money by outsourcing the labor. To allow a greater level of production and income, it is best to allocate resources to numerous countries that have the lowest opportunity costs. This maximizes profits, making everyone happy.
Brian Huynh
Period 4
This journey of the t-shirts effectively shows how trade revolves around the principle of comparative advantage. First, it starts in the U.S. where cotton is efficiently grown due to the advanced technology of machines. The cotton are then shipped to countries in Columbia and especially Bangladesh to create the shirts. Labor is cheap there because the industry is not diverse. Worker do not have options as to where they want to work. The shirts are produced and are shipped back to the U.S. This specialization allows for countries to benefit from one another by allocating the resource to that one specific task, showing the principle of comparative advantage.
Tom King
6th Period
The theory of comparative advantage is clearly demonstrated in the production of a simple cotton shirt. The cotton is produced in the US due to its better technology , climate and vast free land as compared to other countries. The shirt however are made in other countries like Columbia and Bangladesh since the factories in the US are preoccupied with producing different good like computers since it is more efficient. Therefore developing countries have to take the mantle and use factories for creating shirts since their opportunity cost for producing is lower than that of the US. This improves the economy of the country with the manufacturing process. The global economy is more profit oriented than based on virtues Therefore to maximize returns, the shirts are sold back in the United States. The maximum efficient production based on Ricardian principles of specialization ensures that the price remains low and the production empowers the economy of the weaker nations. However low the prices are the profit margin is still high since efficient production with lowest opportunity cost guarantees advantages for both consumer and the producer.
Krista Killam
Period 6
The Planet Monkey t shirt project is a great example of comparative advantage. The whole thing started in the US. We grew the cotton here because of low opportunity cost and advanced technology. Then the t shirts were made in different countries like Columbia and Bangladesh because of the cheap labor and it would cost less. Then they turned around and sold the shirts in the US where the profit increased. This is because of the specialization that each country had in the process of making these shirts, demonstrating a great example of comparative advantage.
Yash Mathur
6th period
I beleive the planet money t-shirt is a really good example of comparative advantege simply for the fact that if a nation can produce at a lower domestic oppurtunity cost than a potential trading partner, and due to some specialization coming into play it improves global recource allocation. Thus resulting in a larger global output, and that is shown through certain places specializing in producing one of the many products needed.
The planet money t shirt is a great example of comparative advantage by showing how a shirt is made internationally. It starts from the cotton farms from the US and the US creates the cotton because of its technology and machinery. The global economy is more profit oriented than based on virtues Therefore to maximize returns, the shirts are sold back in the United States. To allow a greater level of production and income, it is best to allocate resources to numerous countries that have the lowest opportunity costs. This maximizes profits, making everyone happy.
he planet money t shirt is a great example of comparative advantage by showing how a shirt is made internationally. It starts from the cotton farms from the US and the US creates the cotton because of its technology and machinery. The global economy is more profit oriented than based on virtues Therefore to maximize returns, the shirts are sold back in the United States. To allow a greater level of production and income, it is best to allocate resources to numerous countries that have the lowest opportunity costs. This maximizes profits, making everyone happy.
Nikhil Njaravelil
Period 4
he planet money t shirt is a great example of comparative advantage by showing how a shirt is made internationally. It starts from the cotton farms from the US and the US creates the cotton because of its technology and machinery. The global economy is more profit oriented than based on virtues Therefore to maximize returns, the shirts are sold back in the United States. To allow a greater level of production and income, it is best to allocate resources to numerous countries that have the lowest opportunity costs. This maximizes profits, making everyone happy.
Nikhil Njaravelil
Period 4
Benjamin Kurian
Period 4
I think that the tshirt is a great example of comparative advantege because it is wholly created internationally. It comes from separate places of the world and is made into one. Also, the US is a great place to produce the cotton for it too because the weather is good and US has great technology to support the crops. Once the tshirts are made, it can be sold in many countries like Banglesdesh for a really cheap price. This whole process involes specialization and that is very beneficial for the many countries involvled.
Fabian Romo
4th period
This story does a perfect job of representing the idea of comparative advantage. The beginning of this journey takes place in the United States where cotton is able to be grown for such a low price. Then, that cotton grown is then exported to countries with weaker economies. For example, it is shipped to the South American country of Colombia. However, this country is a great environment for producing shirts. There is a vast amount of cheap labor and citizens are ready to work. These workers produce the shirts for a much cheaper price then some of the companies in the United States. Finally, those same shirts make their way back to the United States where they are old for a higher profit. The consumer has spent money for a shirt that has traveled around so many countries. This allows higher profits to be made because each country specialized in one part in production. This way, shirts can be made for a cheaper amount and more efficiently.
Sheryl Machado
6th period
The article is a great example of the principle of comparative advantage. It provides the example of the shirt starting off with just cotton, and ironically the US has a great cotton production. The technology can be a big player in the amount of cotton produced making it easier to produce in large quantities. The shirts were made in countries like Bangladesh and Colombia as labor is super cheap and resources are widely available. Later on the shirts were sold in the US which increased the sales for the shirts. That clearly shows that the profits were able to increase due to each countries specialization in a specific task making it efficient for the contribution of the t-shirt.
Skylar Romo
4th Period
The Planet Money t-shirt portrays the comparative advantage principle perfectly. As the process begins in the US cotton fields we are able to see how the US has a comparative advantage due to its technology. Then in Colombia and Bangladesh the comparative advantage lies in the workforce and tools they possess to make the shirts cheaper than in the US. Once made, they are shipped back at a total cost cheaper than they would be if they were all made in the US. This shows that specialization creates a lower cost for everyone and that is how it helps the economy.
This is an example of comparative advantage because of the countries use of low opportunity costs. The U.S. has the advantage in the production of cotton due to better growing conditions and better technology. Then other countries which have cheaper labor costs can afford to make more t-shirts than in america. Each country has specialized in the part of production which best suits their capabilities at low opportunity cost, therefore being a perfect example of comparative advantage.
Bloombergs concept of a "whole world being behind a t-shirt" is the sole definition of the comparative advantages that connect from nation to nation to create that one shirt. Being a country that exports the majority of cotton that goes into the world trade, and technology only improving the shirts speed of production, our opportunity costs to shift to another resource would be meaningless and only slow our business with other countries such as Columbia to trade with.
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