Question

On Pietra Rivoli's The travels of a t-shirt in the global economy and globalzation reflection:
?a. discuss the physical, political, and economic travel of a t-shirt from cotton plant to manufacturing to export to retail to the recycle bin to the mulch grinder.
?b. Reflection: in 2012, there was the sensitive issue of the U.S. Olympic team's uniforms designed by RAlph Lauren and manufactured in China. Senators from both sides of the aisle threw a fit and under pressure, Ralph Lauren siad it would manafacture the 2014 Winter Olympic uniforms in the U.S. What is the main point in this issue? Why was it such a big deal on a macro economical level?

Answer 1

a. In quest to understand the practical implication of globalisation, Rivoli has written a book about the travels of a $6 t-shirt in a global economy. She found out that the cotton has been exported from Texas (Lubbock, to be precise) to China, where main suppliers of the t-shirt manufacturing company are located. She discusses the origins of such an arrangment, about how British exploitation of humans lead to mechanization of the textile industry in Texas. Even though the origins is politically unjust, she argues that if Lubbock were the largest cotton producing area in the world without the history of human slavery, the free market would have resulted in the same. This is because it is economically viable for China to import cotton from a place where it is the cheapest (or better in quality). However, she argues that a free market would have helped the people to live in better conditions in both the countries.

The t-shirt is produced in China for obvious reasons of relatively less expensive labor. Next, the manufactured t-shirt is exported from China to USA (and perhaps other countries as well). Note that this arrangement involves export of raw material to China and import of manufactured t-shirts from the same country. The economic implications of this arrangement would mean that China is gaining through trade. Similarly, USA's manufacturer is able to buy this t-shirts from a Chinese supplier at a cheaper rate than he would have been able to do from a US supplier. Therefore, USA also gains from trade. The t-shirts are then sold to retailers who cater to customers directly.

Once discarded, the t-shirt is exported to Tanzania, which as an open market. The country sells these t-shirts as second-hand clothing and Rivoli argues that some freedom of market would result in freedom of people.

b. The US Olympics uniform controversy was about the fact that Ralph Lauren was having the uniforms produced in China. Given the US-China history and acquisitions about China stealing US jobs, the issue sparked debates in the Congress. It was an important issue because when a country is working hard towards job creation, such an important event under the US Olympics Committee represents everything that is 'wrong' with the economy from a political point of view.