1. The Travels of a T-shirt in the
Global Economy
CHAPTERS 4 - 7
Team 2
Benedetta Piva
Freddie Dunn
Katherine Spross
Pauline Bourdonnay

2. The Evolution of the Cotton Industry
Wordwide market
Narrow market
Involves governments,
Suppliers, companies all over
manufacturers and Globalization the world &
customers in the individuals
same area

3. The Evolution of the Cotton Industry
“It is political reactions to the market, political protection
from markets and political involvement in markets,
rather than competition in markets, that are at the
center of my T-shirt’s life story.”
Pietra Rivoli

4. Factors that impact the markets
 Role of governments in the global economy
 Reaction of the private sector
 Impact of the globalization in individual’s lives

5. Role of governments in the Global Economy
 Pro active governments
 Example of US government that protected the cotton farmers
through subsidies:
 Creates high barriers to entry into the industry
 Tough competition
 Rules are made to protect the interests of the rules makers

6. Role of governments in the Global Economy
 Inactive governments
 Example of Chinese government:
 No control of the human rights and their application in the
factories
 Cheap labor costs also creates high barriers to entry for potential
competitors

7. Reaction of the private sector
Customers Companies Suppliers
• Want • Are • Have
cheaper demand pressure to
products driven produce at
lower costs

8. Impact of globalization in individual’s lives
 Some are inhibited...
 U.S. workers faced loss of employment
 Example of Lejaby factory in France closed to be outsourced in Tunisia
 …while others are empowered
Deplorable working conditions that would not be acceptable in developed
countries gave Chinese women an opportunity for a better life
Globalization grants individuals like Chinese women the power of choice

9. Conclusion
 Globalization makes industries widespread
 limited amount of products processed entirely in one location
 Governmental (in)action defines the rules of competition
 Globalization has both positive and negative impacts
 Trade-off – Globalization creates:
 New markets, cheaper products, new opportunities
 Destruction of traditional ways of life, loss of employment