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.
66 comments:
The documentary showed men’s clothes produced in Bangladesh whereas women’s clothes were produced in Columbia. We also saw that the laborers in Columbia earned three times more than those in Bangladesh. The reason deals with productivity and protectionism. Where productivity shows which country produces more t-shirts per hours, Bangladesh making about 2.5 shirts an hour per worker and Columbia producing about 17.5 shirts and hour per worker. It’s weird that those who make more produce less but the increased productivity results from the integration of technology as well as skilled labor. However protectionism imposes tariffs on Columbian produced goods adding a big cost to the production of goods. Concluding that Bangladesh has low wages and low productivity with a 16% tariff yet Columbia has a high productivity and no tax on imports but still have high wages.
The t-shirt's journey began in the US. Here, the climate is perfect for growing cotton and we have the technology to make harvesting cotton easier. For the US, the opportunity cost of growing cotton is much lower than in say, Bangladesh, so specializing in cotton production allows the US to perfect production methods and ultimately lower the cost of their product and increase the total quantity proudced. Later, the fabric is sewn into shirts by laborers in Bangladesh and Colombia. In these countries, the minimum wage is lower than in the US, so specializing in labor-intensive processes has a lower opportunity cost. Therefore, it is cheaper to sew shirts in these countries, which creates a less expensive product.
Veronica Wang
Period 6
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.
Hannah Kaplan
6th period
The making of the Planet Money T-Shirts demonstrates the concept of comparative advantage in a very effective way. The documentary shows the whole process of making a single shirt and the places in the world that contribute to making that one shirt. Businesses want to make their products in the cheapest way possible so they can make a profit, and the documentary did a good job at being informative and interesting. It takes people from all over the world to make one single product such as this T-shirt because they will work for these low wages compared to Americans who won't. Different countries all over the world specialize in certain things when making this T-shirt. Specializing in certain things such as producing t-shirts has a lower opportunity cost. Places such as Columbia and Bangladesh, have people who will work for low wages and you get a t-shirt made for an extremely cheap price. In the United States we produce the cotton because it is cheap for us since a majority of machines produce it anyways. Plus, are farmers also make money off of it.The ultimate goal is to produce items in the cheapest way possible, but still be effective.
Making the Planet Money T-shirt required utilizing comparative advantages across the globe. The cotton used for the shirt is grown and harvested in the US, which has the technology to make this process incredibly efficient for farmers, giving US cotton farmers the comparative advantage. However, in Colombia and Bangladesh, the cost of labor is much lower than that of the US and other countries. Additionally there is a lower opportunity cost for sewing the shirts, in counties like Bangladesh and Colombia. This gives them the comparative advantage and makes it cheaper for them to sew the shirts. All in all the whole goal of using comparative advantage is to create the cheapest shirt and the most efficient rate.
Meghna George
Period 2
The making of the Planet Money T-shirts showed the various ways comparative advantage is used throughout the world. The making of the t-shirt begins from the cotton from the U.S.The technology used to harvest the cotton makes it more efficient for farmers to pick the cotton, which allows for U.S to have a comparative advantage in the process of harvesting cotton cheaply. Next, the cotton is taken to Bangladesh and Columbia in order to produce the shirts for cheap prices because labor over there is cheaper than in the United States etc. The various places it takes to produce a shirt allows the shirt to be made at a cheap cost and quickly, which is the point of comparative advantage.
Period 6
The Planet Money T-shirt perfectly represents the use of comparative advantage through the cooperation of many countries and manufacturers. The high end technology of the U.S. allows the nation to produce the cotton very fast while Columbia and Bangladesh have a low labor cost so producing the product is cheaper.This can allow U.S. manufacturers to ship the cotton there for Columbia and Bangladesh to make. The cheap sewing benefits the workers there while also benefiting the consumers in American soil. Countries utilize comparative advantage in order to maximize the potential of their own country and create a working economy.
Comparative advantage is when a country can produce a good more efficiently than it can produce another good. In the process of making the t- shirt. American picks and exports the largest amount of cotton in the world while Bangladesh and Colombia actually make the t-shirt. America has the advantage of picking cotton because it has the ability to engineer seeds that are the best suited for growing and picking. They also have the land area and the technology to pick the cotton efficiently. Bangladesh and Colombia have lower wages that allow them to produce more t shirts at a lower cost than American could. Therefore, the U.S has the comparative advantage for growing and picking cotton while Colombia and Bangladesh have the comparative advantage of making t-shirts.
Period 2
The production of the Planet Money t-shirt represents comparative advantage due to the fact that each of the materials that make up the shirt were made in countries that specialize in that particular product. The cotton for the shirts is made in the United States, and then exported to countries such as Bangladesh, Columbia and Indonesia who specialize in transforming the cotton into fabric. In comparison, these countries hold a comparative advantage over the US in making these products, which the US has a comparative advantage in growing the cotton. By using comparative advantage to create these shirts, the cost of the shirt is lower.
Demarcus Davis
6th Period
The story of production is a great demonstration of the principle of comparative advantage. They said that more than 90% of the cotton used to create the shirts came from right here in the U.S. Ultimately being that here we could specify the make up of the cotton to meet the companies specific needs and produce immense amounts all at the same time we have the comparative advantage right here in our country compared to. Bare a more complex aspect when it comes to comparative advantage being that no one country displayed the ability to present a lower opportunity cost thereby creating a coomparative advantage. However the people and machines needed to actually produce the shirts is a different matter. Places like Bangladesh had the comparative advantage in that regard that they can offer educated workers willing to do the work with the combination of cheap, reliable electricity and a stable government allow these places to have a lower opprotunity cost for manuafacturers. Ultimatley the story was great in regards to the principle of comparative advantage.
Thanh Vo
Period 6
The concept of comparative advantage is portrayed in The Planet T-Shirt Project as many of the factors that contribute to making the shirts are collected from a variety of sources that specialize in a specific field. Fore example, Bangladesh and Columbia have the upper hand in low-wage labor and can specialize in cheap production whereas the US specializes in manufacturing. America has the lowest opportunity cost in manufacturing and fills the role of making cotton for this project. In the end, a single shirt becomes the product of various nations working together and bringing their strengths to the table. By using comparative advantage of multiple global sources to carry out the project with the lowest opportunity cost, The Planet T-Shirt Project exemplifies the economic teamwork needed for a more efficient economy.
The story of the Planet Money t-shirt's production represents the principle of comparative advantage in how Jockey, was outsourcing its labor from Bangladesh. The U.S. is already known for producing large amounts of cotton, so when they exported to Bangladesh, they are able to use the cheap labor there (since minimum wage there is very low) to change the textiles from cotton strands into yarn. Once that is completed, the U.S. then can buy back the textiles that are produced from Bangladesh for a cheap price again, and sell it in the U.S. for a profit. Since the U.S. has a comparative advantage of harvesting the cotton cheaply, we are able to sell it to Bangladesh for cheap prices. Likewise, Bangladesh has low minimum wage, allowing them to produce the textiles at a lower cost, thus benefiting everyone.
The production of t-shirts requires the involvement of several countries around the world that coordinate their comparative advantages to produce clothing. The growing and picking of cotton is very capital intensive, therefore making the United States the perfect country to produce cotton on the large scale, seeing as it's rich in capital. Countries like Bangladesh and Colombia lack the same capital infristructure that the US has, but makes up for it by having many laborers, making them the ideal countries for the actual stitching and sewing of the clothes themselves, which is a very labor intensive activity. Combined, the three countries can produce t-shirts at a much lower cost compared to doing both the production of cotton and the production of clothes singularly. The result is beneficial to all countries involved and leads to a stronger and more interconnected economy.
The story of how this shirt was made represents comparative advantage with the involvement of different countries doing what they do best in order to make this shirt. In the United States we are responsible for the cotton used in shirts because we are able to grow and export this cotton while giving us a comparative advantage. It then goes to Indonesia to be made into fabric, yarn, etc. because that Indonesia specializes in turning the cotton into something more. after that the fabric is shipped off to Bangladesh or Colombia where the shirts are made by human labor. They have the comparative advantage because they can offer cheap labor while still getting the job done. Next the shirts are shipped back to the U.S. to Miami at basically the price of pennies which is why this is a comparative advantage. By having this shirt made in different countries is beneficial to all because each country specializes in what they do best thus creating a lower opportunity cost for other countries.
4th Period
The google definition for comparative advantage is, the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity. This concept is demonstrated in The Planet Money T-Shirt Project. In this case, we export the cotton from America, to countries like Bangladesh and Colombia. We do this because America has the best cotton production and the technology we use makes our cotton the best and most efficient. When it reaches to Bangladesh and Colombia, they transform the cotton into fabric. In this case, the U.S. has a comparative advantage over the production of cotton. Since labor is cheaper in Bangladesh and Colombia, all countries benefit in a cheap and high quality product. Ultimately, both America and Bangladesh demonstrate comparative advantage.
Jillian Sara Gicana
6th period
The story of the shirt portrays that there is a necessary need for many countries to be involved in the role they play in the production of the tshirts. For example the United States is responsible for cultivating and producing cotton. Bangladesh and Columbia receive the cotton and are responsible for making the shirts. These countries have a comparative advantage in being able to produce the shirts for a cheap wage and labor. All of these countries have a specific part in the making of the tshirts and show that their role is specifically important. It's beneficial that all countries have a comparative advantage in a certain aspect of what their role is and it makes the economy stronger.
Timothy Chang
4th period
The Planet Money t-shirts relied on companies that have the comparative advantage, meaning they can produce the most of their product at the least opportunity cost. For example, factories in Bangladesh can make a t-shirt at a substantially lower cost than one in a developed country such as the United States. This is because wages in Bangladesh are much lower than those in developed countries. As a result, Bangladesh can specialize in the garment industry, which requires a lot of human labor, while the United States can focus on high end industries that require a lot more technology and machinery, such as the automobile industry. Comparative advantage is also shown through the jobs of the cotton farmer, the captain of the cargo ship, and the cotton seed grower. They specialize in their job, not necessarily out of concern for the garment industry, but because it is the means by which they receive their wages. Without their specialization and trading, the t-shirt would not only be much more expensive, but it may not even be possible in the first place. Thus, trade has benefits to all parties involved: more of the product can be produced and economies improve as result.
The production of the Planet Money T-shirt shows the advantages of using the principles of comparative advantage. Regardless of whether a country has a higher absolute advantage in producing these shirts, specializing in different areas of production allows more shirts to be made at beneficial costs to each country involved. The US specializes in growing and developing the cotton through the use of their superior technology. The specialization then allows farmers to invest in more expensive equipment which results in higher cultivation of cotton. Thus, the US demonstrates a comparative advantage in growing and raising the cotton. Bangladesh then, uses its labor-intensive economy to focus on producing the actual shirts. The use of cheap labor from Bangladesh enables overall shirt prices to be kept low. In this way, Bangladesh exhibits a comparative advantage in sewing the shirts. By capitalizing on these comparative advantages, both countries benefit from the trade involved in producing the shirts.
Shreya Narayan
Period 6
The Planet Money t-shirt demonstrates the idea of comparative advantage by showing how it is taken around the world. The idea of specialization is heavily relied upon the concept of comparative advantage. The United States contributed cotton which is a comparative advantage because it is grown there and shipped around the globe. When the cotton arrives in places like Columbia and Bangladesh can produce fabric from this cotton for a cheaper price. In essence, both countries in return gain an advantage on good quality products and labor due to specialization. As a result, the company can benefit from low opportunity cost.
Matheus Menezes
6th period
Comparative advantage is a concept that was introduced by David Ricardo when he tried to advocate free international trade. In his argument, Ricardo postulated that it is beneficial for countries to specialize in what they do well and trade off the excess, and that would bring more benefits to both countries and to the planet. The making of the Planet money T-shirt is a perfect example of Ricardo's theory and of comparative advantage.
The principle of comparative advantage can be seen clearly in the process of producing the planet monkey t-shirt. In this process, we see international trade between countries who are relatively specialized in order to increase benefits to both sides. In this case, we see the United States trading with Bangladesh for clothing and garments, in this case a t-shirt. We start with American homegrown raw cotton that is shipped to Indonesia where it is stretched, spun, and pressed into fabric which is then shipped to Bangladesh where the fabric is dyed, cut, and sewed into shirts that we buy here in America. In America, there is specialization in the cotton industry. We focus on agriculture because it is easier and yields the most benefits when considering our advanced tech and trade benefits. In Indonesia, there is specialization in the cotton processing industry in their type of labor and technology. In Bangladesh we see specialization in sewing and cutting. The benefits range from profits in America from buying international cheaper shirts to wages and labor opportunities in Bangladesh.
In the end, the shirt exeemplifies comparative advantage in its production process. It shows specialization in both ends of the international trade system and benefits to both as well.
The Planet Money T-shirt conveys an example of comparitive advantage through the production of a simple T-shirt. The materials obtained as well as the process for making the shirts took place in different countries that had lower opportunity costs. The cotton for these shirts was obtained from the U.S. because the production of cotton was cheapest in the U.S.. Making the shirts takes place in Columbia and Bangladesh because production is cheaper than in the U.S. due to lower wages. The story of the planet money shirt demonstrated comparative advantage by conveying how the process of making a T-shirt required numerous countries that took part in the production process because of lower opportunity cost.
Andrew Olson
Period 6
According to the article, it costs less for the U.S. to specialize in cotton and agriculture than any other nation, and the US is the King of Cotton. Being a more developed nation, the United States has the technology to grow cotton that yields more, and is genetically modified to be insect resistant. The United States also has the capital to offer subsidies and crop insurance while others may not. There is also a comparative advantage in foreign countries when it comes to labor, as foreigners often work for much less than people in the US due to minimum wage laws in the US. The world advancement in shipping however, means that shipping will be extremely cheap, it simply makes more sense for the United States to do the shipping because they have the capital to cover these costs.
Vinit Shah
4th
The Planet Money t-shirt represents comparative advantage as many countries and companies are needed to make a single t-shirt. The USA is the leading exporter of cotton because of our advanced technology and GMO's. We then ship it to countries like Indonesia, Bangladesh, and Columbia as their labor costs are much lower, so they can use their work force for a lower cost. This lowers the production costs. Countries use comparative advantage in order to maximize their gains in the global economy.
Joyce Varughese
Period 6
The Planet Money T- shirt provides an example of the role of comparative advantage in the global market. Comparative advantage stems from many factors such the cost of labor, the stability of government, the evolving social status and reforms, and the resources and type of industries that encompass the economy of a country. There are also health and environmental factors that prevent the starting of an industry, such as the cotton and agricultural industry, in countries with cheap labor and available land. Thus laws and health requirements to promote quality and demand are also factors of comparative advantage.
In context of the T- shirt, the advantage the US boasts within the global industry is cotton: the research, subsidies, and new methods of development for quality help. For Indonesia, their stable government yet cheap labor helps in the processing of the cotton. For Bangladesh, the social status of women allow many to work in the garment industry for very low wages to support their families. However, this status is slowly evolving and factory accidents will soon call for social reform in the industry. Therefore, this advantage is easily jeopardized. Many developed countries are focusing on service and technology sectors of the economy and therefore developing countries have an advantage in the sectors that are becoming less popular among developed countries.
Seyi Soyebo
Period 4
The story is a good demonstration of the principle of comparative advantage. More than 90% of the cotton used to create the shirts came from the U.S. Being that here we could specify the make up of the cotton to meet the companies amounts at the same time we have the comparative advantage right here in our country. However the people and machines needed to actually produce the shirts is a different matter. Places like Bangladesh had the comparative advantage in that regard that they can offer educated workers willing to do the work with the combination of cheap, reliable electricity and a stable government allow these places to have a lower opprotunity cost for manuafacturers. Ultimatley the story was great in regards to the principle of comparative advantage.
The story of the shirt portrays that there is a necessary need for many countries to be involved in the role they play in the production of the tshirts. For example the United States is responsible for cultivating and producing cotton. Bangladesh and Columbia receive the cotton and are responsible for making the shirts. These countries have a comparative advantage in being able to produce the shirts for a cheap wage and labor. All of these countries have a specific part in the making of the tshirts and show that their role is specifically important. It's beneficial that all countries have a comparative advantage in a certain aspect of what their role is and it makes the economy stronger.
Madison Bettis
6th period
The story behind the Planet Money T-shirt portrays the separation of contribution to a single good from multiple countries. This separation of tasks and contributions that is put into creating a good or service is comparative advantage. Throughout the t-shirt's journey it starts off with the US producing the cotton needed and distributing it to the countries that then use it to create the t-shirt. The opportunity cost of making cotton is less for the US than the opportunity of making the t-shirt and the opposite way around for the countries, such as Bangladesh. Therefore, this task separation benefits all parties involved with lower opportunity cost when contributing to making the t-shirt.
Anna Lee
2nd period
The video begins with cotton production in America. America's advanced agricultural technology has kept American cotton as the international lead. Technologies like GMO's and John Deere Tractors makes high yield production cheaper for American farmers. Then in Indonesia, workers are educated, the political system is stable, and the electricity is reliable. These factors allow highend factories like the ones that spin cotton to sustain and beat competitors. Moving on to sewing, Bangladesh and Columbia have a large, underpaid workforce to preform long hours of repitive work. Since sewing is labor intensive, corporations are drawn to such countries to produce huge yields. Finally, the final products are shipped in large containers across oceans and America.
By showing us where the shirt travels and the interworkings of each industry and factory, we can see how every nation plays their own necessary part. Every country is particularly advantaged in one part of production or another for different reasons. The Planet Money T-shirt essentially explains that whoever has the highest and cheapest yield (comparitive advantage) would be the responsible for that task. By combining the individual abilitites of every country, a simple and cheap shirt is able to exist.
Alexis Zamora
6th
The story of how a t-shirt is made easily encompasses the principles of comparative advantage. You first see the importance of specialization, what one area thrives in producing may not be the same in another part of the world. The U.S excels in cotton production, while places with cheaper labor like Bangladesh and Columbia contain much workforce in the actual assembly of the t-shirts. We see this specialization as costs differ and the goal is to make a good product for the least amount of money. Together all of these areas of resource are needed to make even a simple t-shirt, something seen as uncomplicated despite its origins.
Starting in the Untied States, the t shirt's cotton production is completed at a lower cost due to America's advanced agricultural technology. In Bangladesh or Columbia, the workers work at very low wages also allowing production costs to be low while turning the cotton into fabrics and yarns. The material is then sent to Indonesia where the fabric is then made into shirts and shipped back to the United States at a very low shipment cost. Comparative advantage is shown perfectly through this example because each country specializes at what they can do best with the lowest opportunity cost. Without comparative advantage, countries would not be able to maximize their profits and have such a cheap effective way to make t-shirts.
The story of the Planet money t-shirt exhibits comparative advantage because it shows that differents countries work together to produce a single product. The capital comes from the the alternate governments and resources the countries have. The United States has a lower opportunity cost for producing cotton. Indonesia has a lower opportunity cost for processing the cotton and Bangladesh has a lower opportunity cost for providing the manual labor to produce the final product. Each country's specialization in different aspects of the production process having comparative advantage can be utilized effectively.
Comparative Advantage is used in t shirt production, because there is the teamwork of a bunch of countries just to make one t shirt. Since the U.S is the lead agricultural producer of cotton, the cotton is the biggest export, not any other country. The U.S has to produce all the cotton and dont want to use U.S labor, because the labor is too expensive as to labor in poorer countries such as Columbia, Argentina, India, China, and ect. This is a comparative advantage for many countries who want to gain profit from their production. Of course no country wants to pay for anything too expensive if they can find something less expensive somewhere else. Countries like to use comparative advantage to maximize their profits and gain assets.
Imani Windom
2nd period
America has the comparative advantage when it comes to producing cotton since we have the technology to produce better quality cotton for lower costs and at a higher quantity. We can export this cotton to places like Indonesia where it can be turned into yarn at a much lower costs than it would here in America because labor and other expenses are much cheaper there. Also, the fabric can be made into t shirts in countries like Bangladesh for an unsettlingly low cost, which provides jobs for millions. We must rely on specialization to create a comparative advantage to establish the greatest returns possible.
Kevin Koruthu 2nd Period
Comparative advantage is shown through the story of the Planet Money T-Shirt by which countries take up certain duties along the line of creating the T-Shirt. Since America can produce the raw cotton at the lowest opportunity cost when compared to all the other countries, America has a comparative advantage in producing the cotton. However, the labor for refining the raw cotton into the T-Shirt is much cheaper in other countries as they have a cheaper workforce. This allows for more profit in the long run and allows for a the T-Shirts to be produced at a larger quantities with a more people creating the T-Shirts.
The United States is able to have a comparable advantage in the production and cultivation of cotten because we have the land and technology to make it as effective and efficient as possible. Our agricultural businesses is able to produce higher yields of crops with lower production costs which gives us the comparative advantage. Indonesia and Columbia have a comparative advantage in machinary because the maintanence of factories, and the price of labor, are lower there allowing them to make fabric at a lower cost than any other place. Bangladesh makes the tshirts out of this fabric. The labor in Bangladesh is excessivly cheap and many people living there are too poor to accept any other high paying job. Therefore, with Bangladesh's low labor cost, they have a comparative advantage of turning fabric into tshirts. Finally, the shipping container allows many different countries to make and ship more at a low cost. This low shipping cost makes the transportation of goods cheaper allowing more to be made. In all, the production of a simple shirt can not be done in a single country. It takes the coordination of many specialized industries to get us our shirt and a price we are willing to pay.
Hannah Stone
2nd Period
America has the comparative advantage of cotton because due to the use of technology and machines, cotton can be produced in greater quantities quicker than other countries. Indonesia has a lower opportunity cost for processing the cotton so the cotton is exported from America to Indonesia and is then shipped to places like Bangladesh, where the t-shirts can be made by a large labor force with startlingly low wages. The process of making the t-shirt is an example of comparative advantage because all these nations work together to create one product.
Period 2
Tim Cummins
The story of how a t-shirt is made easily shows the many principles of comparative advantage. You see first off the important idea of specialization, for what one area is good at producing may not be the same in another country. The U.S is good at cotton production, while countries with cheap labor like Bangladesh and Columbia contain more of a workforce in the actual assembly of the t-shirts. The U.S. can export this cotton to places like Bangladesh and Columbia, where it can be turned into yarn/cloth at much lower costs than it would in America, because labor and other expenses are much cheaper in those countries. Also, the fabric can be made into t-shirts in countries like Bangladesh for a low cost. We must rely on specialization to create a comparative advantage to help create the best returns possible.
Joshua shajie
Period 6
Comparative advantage is first demonstrated by how United States is the biggest producer of cotton. We learn that our technology has helped us have an advantage over other nations in creating cotton . Then the cotton is shipped on shipping containers,and without shipping containers we wouldn't see a global economy in which nations can specialize and trade with other nations. The cotton is taken either to Columbia or Bangladesh this is another example of comparative advantage. We see how the workers are paid little compared to workers who would be paid way more in the United States. This advantage leads nations like India to have more women workers. Even though the conditions aren't the best they're still are better off with the t shirt factory. Every nation that is a part of this t-shirt is better off with each other. Each nation has a specialization in the process of creating a t-shirt from the actual cotton to the machines and to the people who created the t-shirts. Comparative advantage has led to a global economy in which specialization in producing goods creates jobs and opportunities to those who otherwise wouldn't have .
ulises osorio 2nd
The story of how a tshirt is made shows many examples of comparative advantage. one of the examples is that the climate and land in the united states is very suitable for cotton to grow, as opposed to the climate and land in Bangladesh and Colombia. therefore, the united states has a comparative advantage in growing the cotton used for tshirts. on the other hand, Bangladesh and Colombia have much cheaper labor costs. people in these countries work more for less money than in the united states, so as a result, Bangladesh and Colombia have the comparative advantage in labor costs. the outcome of all of this is that the united states should grow and produce the cotton, and bangladesh and colombia should be the ones actually making the tshirts by sowing them up and what not as this will be the most effective and cheapest way for both countries.
Paige Price
Period 4
The making of a t shirt is a prime example of comparative advantage. Comparative advantage deals with specialization coming from different countries. The way the shirt is made includes many different materials that are all made in different countries. For example, the United States is good at producing cotton because of this the US t shirt companies can export the cotton to be made in cheap labor countries like Bangladesh and Colombia. Therefore, all of the countries involved are creating the t-shirt at a smaller cost. Columbia has the machinery and factories set to create the shirt while Bangladesh has the power and resources to turn the cotton into fabric that can be used to make the shirt. All in all, without the help of many other countries the process of making a t-shirt would be much longer and much more expensive.
Maya Ewens
2nd Period
The production of the Planet-Money T-shirt was followed throughout many countries. It shows how each country specializes in different things or some of the same things. For example there was a garment industry in Bangladesh, they specialized in sewing clothes. There were also specific places that showed where the Plant-Money shirt like where they produce the seeds, where the machines make the shirt, how the people make them and where they are shipped. The United States tries to find the country with the cheapest labor so they won't have to give up as much. The documentary showed how things were created and why they were created in that specific place. United States has the comparative advantage because it has the majority of the resources to make a shirt.
Tiffany Chan
4th Period
The production of the Planet Money t-shirts illustrate comparative advantage by showing the different materials produced by different countries. The United States is great at producing cotton because it has done so for many years. In addition, Bangladesh and Colombia have been able to have cheap labor so that the United States would be able to have their t-shirts made at a cheaper price. Therefore, it is important for a country to specialize in something so that it can help other countries make something cheaper and in a short amount of time.
Ryan Phu
Period 2
The making of the Plant Money t-shirt perfectly describes comparative advantage. Comparative advantage is defined as one nation specializing in one product and trading with a partner. In this example the United states specializes in the production of cotton and fabric. They trade with Colombia and Bangladesh which specializes in the making of the actual t-shirts. This is because Colombia and Bangladesh has a cheaper workforce so specializing in making t-shirts would be better for both countries.
David Edquilang
Period 6
The story of producing of the Planet Money t-shirt demonstrates the principle of comparative advantage since the cotton that comprises the t-shirts is grown in the U.S., where cotton farming is economical, efficient, and most productive. Having their yarn spun and woven in Indonesia allows for precision, yet low costs and stable production. Through the cheap labor in Bangladesh and Colombia, they could have their t-shirts sewn and assembled for a small price. And lastly, by transporting their shirts by shipping containers, they were able to save even more money in their total production costs.
By applying the idea of comparative advantage, they have optimized the production of their t-shirts for the most cost-effective and most productive way possible according to their preferences. Without trade, production of their shirts would be much less fruitful.
The story of the shirt demonstrates that there is a massive need for many countries to be involved in the role they play in the production of the tshirts. For instance, the United States is responsible for cultivating and producing cotton. Bangladesh and Columbia receive the cotton and are responsible for making the shirts. These countries have a comparative advantage in being able to produce the shirts for a cheap wage and labor. Each country has a specific job and is required to do so in order for the shirt to come together It's beneficial that all countries have a comparative advantage in a certain aspect of what their role is and it makes the economy stronger. Having a comparative advantage in each country will make it so the best possible product is made from the best materials.
The Story of the Production of the Plant Money demonstrated the principal of comparative advantage by splitting up the process of T-shirt creation and showing us who made the T-shirt and the value of production. Because each location or country was specialized in one thing, the manufacturing time was faster, specializing a task in each location caused the particular location to develop technology to make the entire process efficient. The different locations benefit from having a part in the fabric industry, the women of Bangladesh for example have new opportunity to make money and live a better life. Jasmine, a Bangladeshi woman was able to bring her family out of debt, need the T- Shirt making business to achieve other things in life. Bangladesh, has cheap labor that allows for an overall increase in income; the textile industry benefits both America and Bangladesh. In conclusion the widespread production plan, helps everyone proving the theory of comparative advantage.
The story of Production of Plant Money definitely shows the principle of comparative advantage. Comparative advantage is an ability of the group to carry out a particular economic activity more efficiently than another activity. United States specializes in the production of cotton fabric and they give the fabric to Bangladesh therefore helping them making cotton T shirts for lesser cheaper price. In conclusion, comparative advantage helps the countries economy and boosts their economy
Carly Freker-6th
The story of the production of the Planet Money t-shirt demonstrates comparitive asvantage perfectly. The United States, a country with trong agricultural economy, produced the cotton necessary for creating the t-shirt. The cotton then makes its way to Columbia and Bangladesh, where it is spun with precision. The low labor costs in these countries keep the production price low while producing the best results. Therefore, through the application of comparitive advantage, the Planet Money t-shirt becomes a prime example of how specialization can produce the best products for the most efficient costs.
Amanda Hong
Period 6
The story of the production of the Planet Money t shirt is a great visual in comparative advantage. At the bottom of the article it shows the different steps that were taken in 3 different places that went into making the t shirt, much like how other regular t shirts are sold in the U.S. It shows how other countries have a comparative advantage over others in making products, much like how Bangladesh was chosen to make the Planet Money t shirt rather than another country, such as China.
Comparative advantage is essentially when a country specializes in a good because it is easier for them to make it (have the least opportunity cost). These Planet Money videos show comparative advantage really well because each country -whether it be the textile factories of Bangladesh and Colombia or the cotton fields in the US- were really good at making their individual product. Because of specialization and comparative cost creating the common goal of making the t-shirt was made possible.
Comparative advantage is very important to countries the specialize in making one product because they would have the least opportunity cost. These videos show comparative advantage extremely well because each country specialized in making one product better than the other. The making of the T-shirt was possible due to both specialization and comparative cost.
Gabriel Martinez
Period 2
In creating the Planet Money T Shirt, it shows a effective way of comparative advantage. In the document we read about how the t shirt is made, and all the countries who contributed in making the shirt. It's important because we're trying to find where the product can be made quicker and cheaper. Specialization creates many opportunities for both import and export countries.
Tea Thomas
6th
In the documentary of Planet T-Shirt, it shows all the steps and countries that are involved in making one countries t shirts. The shirt incorporates a lot of materials that come from all around the world. If the United States were to allocate all these resources on their own, they would most likely run out. Comparative advantage plays a key role in this process because in involves countries that can supply materials easier and without such a high opportunity cost in order to create something simple but necessary.
The production of the planet money t-shirt show us the different countries and people that are involved in the making of a simple t-shirt. All the different countries that produce the different components and materials at the lowest cost all come together to make the most cost efficient shirt. Comparative advantage of each individual material produces everything at a low cost, and becomes beneficial to all people. The textiles and cotton fields come from the countries with the lowest opportunity cost to get the best outcome.
Sabrina James
2nd period
The Planet Money T-shirt involves the use of labor and supplies from all around the world, each step in a different location. Each separate step utilizes that particular location's specialties--the United States' technological advantage, for instance, and the cheap and plentiful labor of Bangladesh. Bangladesh would be unable to produce nearly the amount of cotton that America can, and American factories would not be able to supply the labor to compete with those in Bangladesh. Separating the aspects of the T-shirt production into the locations with the highest comparative advantage allows the shirts to be made quickly, efficiently, and cheaply as possible.
The story of the shirt portrays that there is a necessary need for many countries to be involved in the role they play in the production of the tshirts. For example the United States is responsible for cultivating and producing cotton. Bangladesh and Columbia receive the cotton and are responsible for making the shirts. These countries have a comparative advantage in being able to produce the shirts for a cheap wage and labor. All of these countries have a specific part in the making of the tshirts and show that their role is specifically important. It's beneficial that all countries have a comparative advantage in a certain aspect of what their role is and it makes the economy stronger.
The story of how a t-shirt is made easily encompasses the principles of comparative advantage. You first see the importance of specialization, what one area thrives in producing may not be the same in another part of the world. The U.S excels in cotton production, while places with cheaper labor like Bangladesh and Columbia contain much workforce in the actual assembly of the t-shirts. We see this specialization as costs differ and the goal is to make a good product for the least amount of money. Together all of these areas of resource are needed to make even a simple t-shirt, something seen as uncomplicated despite its origins.
Camdyn Brocail - Period 4
The Planet Money t-shirt shows comparative advantage by demonstrating how it is taken around the world. Specialization relies heavily on the concept of comparative advantage. The U.S. contributed cotton which is a comparative advantage because it is grown there and shipped around the globe. When the cotton arrives in places like Columbia and Bangladesh can produce fabric from this cotton for a cheaper price. Overall, both countries in return gain an advantage on good quality products and labor due to specialization. As a result, the company can benefit from low opportunity cost.
Rolando Pineda, 4th period
The story behind the production of the Planetary Money t-shirt demonstrates the principle of comparative advantage by taking us through the international journey a single t-shirt takes in its lifetime from the cotton fields of America to the sewing factories in Bangladesh to the local department store where you buy your t-shirts. The U.S. specializes in the production of cotton which it trades it countries all over the world and Bangladesh specializes in sewing t-shirts from the cotton the U.S. sells them. Both countries hold a comparative advantage in their given field and make a lump sum by practicing specialization. It just goes to show how much better off everyone is when we work together.
The video begins its depiction of comparative advantage by showing the cotton production in America. Our advances in technology and GMO allows us to create high amounts of cotton with a low price. Next, the video moves on to Indonesia where factories spin the cotton into fabrics.After that, Bangladesh and Columbia use uneducated, underpaid workers to do the sewing. In order to maximizes profits, companies will often use countries such as these since they have low labor costs.Finally the shirt is completed and sent to America. By depicting the process from start to finish, we see how each country is necessary for the production of one shirt and how each country provides different advantages through its different roles in production.
Shanika Jacob period 6
The Planet Money T- Shirt shows the principles of comparative advantage. Specialization in each country allows more shirts to be produced. This helps the countries involved because more jobs are provided and cost of living increases as well. The US in the video grows and supplies the cotton using advanced technology . The farmers invest the equipment and tools to cultivate the cotton. Bangladesh uses the cotton made and produce the actual shirts. It uses labor- intensive economy leading to the low shirt prices. This is an example of comparative advantage and both countries involved in the trade.
nabeel momin 4th
the Planet Money T-shirt shows comparative advantage by showing the different possible ways to create a shirt the cheapest possible way. it also shows the different possibilites of making shirts with different materials, and what the difference would be if making it in different countries. every country specializes in something different. The u.s specialized in growing and developing the cotton because of the superior technologies and machines. so making the t shirts takes place in places like columbia and many other countries to lower the oportunity cost
Katy Kaiser
Period 6
The Planet Money T-shirt shows comparative advantage because each area of the world that is involved in creating the t-shirt is able to produce their respective part with the most efficient prices, work load, and number of workers. With the cotton, Mississippi is able to use the technological advantages that the US has in order to create genetically superior cotton with the some most technologically superior tools in order to harvest them. In comparison to countries like Bangladesh which, while not technologically superior, has a great number of people willing to work for jobs that people in the US would not be willing to take while helping the country's economy. Each part of the t-shirt is created from countries with the most advantage in creating that item in order to maximize the amount of t-shirts made.
Ikechi Enyioma
4th Period
The project that was conducted in the Planet Money T-shirt campaign depicts how comparative advantage is used when different components of the production of a shirt is handled by different people in different countries because of their low prices and expertise in that particular field. Compared to the other countries involved in the production of the shirt, for example, the picking of cotton in the U.S. has a comparative advantage over any other country producing it because the U.S. is the largest exporter of cotton in the world.
Jeremy Tanueco 2nd Period
The story of the creation of Planet Money's T-Shirt presents comparative advantage by showing where each component of the T-Shirt was acquired from that had the best advantage in price for creating the shirt. The T-Shirt's cotton was exported and used from the U.S., its woven threads being made in factories in Indonesia, all of the T-Shirt's materials and processes were done in various parts of the world that presented a lower cost in the creation of the shirt. An example of comparative advantage being used was the hands on sewing being done in Bangladesh, due to the physical labor being cheaper there than in the US, allowing the company behind the Planet Money T-Shirt having less costs.
com·par·a·tive ad·van·tage is the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.
this is modelled very well by the planet moneys T shirt production - all the material and processing were done in parts of the world where they were the most advantageous , such as the weaving that was done in bangladesh
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