Production of clothing is a planned operation that includes a series of steps including laying, marking, cutting, stitching, checking, finishing, pressing, and packaging. Raw resources are transformed into finished goods through this process.
Who produces shirts with a comparative advantage?
- States of America : In terms of creating shirts, the US has a comparative edge. Creating one shirt costs the United States 1/3 boot in opportunity costs, but making one shirt costs one boot in Canada.
- The U.S. has an absolute advantage in shirt production since a U.S. worker can produce more shirts than a Chinese worker.
- Which city is more advantageous than others in producing each color of sock? Because a worker in Boston produces more (3 pairs of socks per hour) than a worker in Chicago, Boston has a clear edge in the manufacture of both types of socks (2 pairs of red socks per hour or 1 pair of white socks per hour).
- Similar to this, producing one extra shirt in China costs 1/100 worker years, which means that 0.1 fewer computers would be produced. Therefore, 0.1 computers represent the pertinent opportunity cost in China. (a) Assume that China and America each have 100 employees.
- However, the harmful effects don't start until the fibers are grown. After the dyeing process, the process of turning the cotton into yarn requires a lot of energy and is the second-highest contributor to carbon pollution throughout the lifecycle of a t-shirt. The fabric used to create the t-shirt is then knit using the cotton yarn.
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