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In Which H&M's Supply Chain Illustrates Paul Krugman's Nobel Prize

In Which H&M's Supply Chain Illustrates Paul Krugman's Nobel Prize

We aren't fans of Paul Krugman but his Nobel Prize in economics for "having shown the effects of economies of scale on trade patterns and on the location of economic activity" is too easy a pot shot for a fashionista that likes to talk supply chain efficiencies and large scale clothing orders. Thus with the help of H&M's supply chain we demonstrate just how easy Krugman's theories are to understand. The global diffusion of fashion's trade patterns depends on the demand of voracious fashion consumers buying up bulk orders of skinny jeans or other trendy items, the location of skilled workers, the relative impact of textile tariffs, and the cost of shipping. Fashion spans the globe from one style capital to another in an endless parade of trend manufacturing and production.

So next time someone tells you fashion isn't a serious subject go all global trade patterns on them and demonstrate your in depth knowledge of supply chain management and how it affects trade patterns. Just be sure to keep an eye on the tariff situation! That will get you every time.

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