This discussion board addresses the interaction among price, demand, and supply in how global markets work. H&M Brand and others face a backlash from China, a major cotton supplier after expressed concern over the alleged use of forced labor in cotton production.

Review the following article:

• Uyghurs: Xinjiang cotton ban is self-defeating, China tells H&M. BBC News. 

Please address in a presentation format with an accompanying graph of how the market for H&M Company cotton clothing is impacted by this change in supply. Only 5.2% of H&M sales are in China. It is most important to explain the underlying reasons, the impact of cost, price, and supply and demand changes if any. Your focus is on the market for H&M clothing.

Include an accompanying graph for each of the three situations showing demand, price, and supply before and after the change effected by China.  

1. China tells H&M that it will not be able to make a profit on sales into China if they don’t buy all their cotton from the Xinjaing Region.
2. South Carolina, an alternative source of cotton, has a bumper crop of cotton that exceeds the supply from Xinjaing but is much more expensive.
3. A synthetic material is developed that is identical to cotton in every way except that the cost is considerably less.

Each original post should include an explanation for each with three diagrams to emphasize the impact on the market for H&M apparel.

With at least two of your peers, compare and contrast your responses. 

Answer rating: 100% (QA)

The market for HM clothing is impacted by this change in supply in three different ways The first way is in regards to Chinas ban on Xinjaing cotton T... View the full answer