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. Class Notes – Sweatshops
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. Example: We pay upwards of $200 for Jordan’s
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
$ per shoe

8. Why do sweatshops exist?
Low/Middle development countries:
need money & jobs for their people
Consumers:
want cheap products
Free Trade Zones:
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
Poor people:
need jobs

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

10. Exit Ticket