Untitled Slide

WHERE IS IT MADE?

• Bangladesh
• Columbia

Has this item always been produced in this particular location?

• No it has not
• When the cost to make t-shirts becomes to high the company moves to a new cooperation
• "Industry on "roller skates"" -npr.org
• Ex: Latin America, to China, to Bangladesh

INPUTS FOUND AND PRODUCED

• Cotton: Colombia, Indonesia, Bangladesh — where the Planet Money T-shirt was made. Also produced in the USA
• Yarn: at a $35 million factory in Indonesia
• Produced in factories by workers who work for long hours, with dangerous working conditions

HOW DO SITE FACTORS CONTRIBUTE TO THE FACTORY LOCATION?

LAND

• Where is the factory located and why?
• The factorys are located in Bangladesh and Columbia
• Cheap labor and large amounts of space to build their factories
• Cotton and yarn that goes into making the shirts is grown in Bangladesh and Columbia
• Can ship their products by sea for very low costs which is why they do not have them in the USA

LABOR

• What type of workers work in this factory and why?
• Females
• Very skilled because they know how to sew, spin yarn, and use framing machines
• They work because they dream of better lives for their family
• The labor-intensive earns the workers about $13.00 a day without overtime with no benefits

LABOR-SITE

• The land and labor is very cheap near the factories where they make the t-shirts

CAPITAL

• How does access to capital affect this industry?
• The extra money that they may have to loan out
• It could cause problems if they're not getting paid back at a certain time
• Affects the break of bull point of the t-shirts and how they'll ship them

How do situation factors influence the location of this industry?

• The location of the industry starts where there is enough inputs to provide for the factories
• The t-shirt product started in Columbia, where they have enough cotton to work off of the land and provide enough to keep the industry going

Does proximity to inputs or markets apply to this product?

• In Columbia, the origin of the womens' t-shirts, they do everything on their own
• They have proximity to inputs because the workers there pick the cotton, then spin it into t-shirts in the same place
• With countries around the world that do not have excessive resources, the cotton is shipped there to be transformed into t-shirts

Has changing technology influenced the location of this particular industry?

• Technology has increased the production of cotton, making it possible to make more t-shirts in a shorter amount of time
• Now the production of shirts has spread to different parts of the world

How does transportation influence this particular industry?

• It varies depending on the wages of the country and how far away the countries are
• The usual transportation is typically by ship

Mode of transportation used

• T-shirts are loaded onto ships in big boxes that can hold thousands of t-shirts
• With 50 or 100 people working it takes weeks to unload and reload just one ship

Break in bulk points

• Yarn is made in Indonesia, then shipped to Bangladesh
• Loaded and unloaded at ports

JUST IN TIME DELIVERY?

• Just in time delivery does not apply to the t-shirts

MAP SHOWING TRANSPORTATION ROUTE AND THE ORIGIN OF INPUT