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11/15/13 “To buy or not to buy” What is a product you wish you could have?

11/15/13 “To buy or not to buy” What is a product you wish you could have? Approximately how much does this product cost? Would you pay 25% more for this product if it was guaranteed to be made in a factory in the U.S. with good working conditions and fair wages ? Why or why not?. 11/15/13

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11/15/13 “To buy or not to buy” What is a product you wish you could have?

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  1. 11/15/13 “To buy or not to buy” What is a product you wish you could have? Approximately how much does this product cost? Would you pay 25% more for this product if it was guaranteed to be made in a factory in the U.S. with good working conditions and fair wages ? Why or why not?

  2. 11/15/13 • Econ. Agenda • Sweatshop vocabulary & profit maximization (class notes) • “Sweating for a T-shirt” (watch documentary) • HW: • Sweating for a T-shirt follow-up questions • Sweatshops Quest on Tuesday

  3. 11/15/13 • Class Notes – Sweatshops • Sweatshop: • a place of work with dangerous conditions and limited worker rights and benefits • Most clothing companies earn a profit by using cheap labor in sweatshops to produce expensive clothes • Sweatshops that produce clothing in Latin America are referred to as “maquiladoras” or “maquilas”

  4. Quota: • a required number to be filled • Example: Marilena must meet her quota of producing 200 shirts today or she does not get paid.

  5. Union: • organization of workers formed to protect and further their rights and interests • Unions can make demands that speak for all employees.

  6. Profit Maximization • Profit: • how much you earn after taking into account the costs of production • Maximization: • to earn the most

  7. Profit Maximization • Example: We pay upwards of $200 for Jordan’s • Nike’s Costs: • String: $0.13 • Leather: $3.00 • Plastic: $0.18 • Cotton: $1.45 • Paint: $0.06 • Worker: $3.00 • Box: $0.45 • Shipping: $15.00 $23.27 What’s Nike’s Profit? $200.00 - 23.27 $176.73 per shoe

  8. Why do sweatshops exist? Low/Middledevelopmentcountries: need money & jobs for their people Consumers: want cheap products • FreeTradeZones: • no laws to protect workers • countries make agreements to have FTZ’s where laws & tax restrictions are limited in order to maximize profit Corporations: want cheap labor and no laws Poorpeople: need jobs

  9. To Do: • Watch “Sweating for a T-shirt” documentary • Questions due for HW

  10. Exit Ticket

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