America Has Dominated The Global Cotton Industry Summary

Chapter 1: How America Has Dominated the Global Cotton Industry for 200 Years This first chapter begins by explaining that it is very likely I person will own a shirt that contains cotton from west Texas. For 200 years the United States has been the leader in the global cotton industry in the areas of production, cotton exports, farm size, and yield. America competes with under developed countries when it comes to cotton growing. This is a very difficult industry to be a part of due to the lack of product differentiation and the intense price competition. American cotton farmers, especially in Lubbock, are very successful live a great life compared to farmers living in South America and Asia. An issue that came up to the World Trade Organization in 2003 was that America

People still believe that the subsidies are unfair to other cotton producing countries but America is still receiving them. Most will argue however, that the United States had passed other countries in cotton production before the subsidies were even an issue over 200 years ago. Americans are also credited with being the best in the industry because of their creative approach to producing the cotton. Many of the farmers have come up with new marketing and technology to address the shifts in supply and demand. American growers have to be adaptable and resourceful in order to be successful. These farmers have also figured out how to be competitive in the market but also realizing when it is too risky to be competitive. Growing cotton is an impressive feat because the temperature must be perfect; the cotton can’t be destroyed by hail; and must avoid weeds. Cotton farmers are always at risk with these unfavorable factors as well as finding the labor to pick the cotton. Though cotton is a successful industry in the United States, it is important to remember the history of cotton, where slavery was born. This was a shameful