By 1861 the United States was producing two-thirds of all the raw cotton exported around the world.

ECONOMIST: Cotton

Out of the 22, 000 pounds of raw cotton that leave Nelson's farm in the module truck, only about 5, 300 pounds is the white lint that will be turned into T-shirts.

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Mr. Ohlsson said declining costs for raw materials such as cotton and wood likely would allow the company to cut prices another 1% this fiscal year.

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Today India's main exports to China are less iniquitous raw materials, mainly minerals and cotton.

ECONOMIST: India and China

However, with the demand for clothing picking up alongside the shortage of cotton, the cost of the raw material has soared.

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Because American Giant's supply chain can be traced all the way back to the US cotton fields, with fabric being specially woven and dyed for it, getting a new shipment of raw materials wasn't as simple as making a phone call and waiting for an overnight delivery.

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