Question

Question #1*

Which groups benefited the most from China imposing export quota on rear earth metals?

Did it give the Chinese domestic manufacturers a significant cost advantage?

Did it result in dramatically increased quality and environmental standards?

Question #2*

Given that 97% of rare earth metal production is now done in China, an increase from 27% to 97% between 1990 and 2010,

Do you think Countries sucn as Australia, Canada, and the United States should reconsider their environmental restrictions

on product of such metals?

Question #3*

The restrictions imposed on China on rare earth metals has resulted in some companies

( e.g. Toyota, Renault, Tesla, ) starting to look for alternatives. They plan to use parts that do not include rare earth metals.

Is this a good solution ?

The subject the I am currently studing is International Business Management on Global Business Transactional & International Affairs

Answer 1

**** As per Chegg guideline answering first set of question ****

Question #1*

Which groups benefited the most from China imposing export quota on rear earth metals?

Did it give the Chinese domestic manufacturers a significant cost advantage?

Did it result in dramatically increased quality and environmental standards

Rare earth metals are made up of 17 chemical components that are helpful in manufacturing many high-technological items; in any case, the extraction of rare earth metals is a grimy procedure and requires high environmental standards that raises the production cost. In any case, China produced 97 percent of rare earth metals during 2010 which is about 50,000 tons of rare earth metals. Notwithstanding, since 2010 China has imposed an export quota on rare earth metals which is profoundly beneficial for Chinese manufacturers at the same time, the reason offered by China for imposing the export quota is that several of its own mining companies didn’t meet environmental standards and had to be shutdown.

Nonetheless, indeed, this export quota was exceptionally beneficial for the Chinese manufactures as it has a significant cost advantage because it upsurges the cost of rare earth metals in the international market as well as it encouraged remote manufactures to move more production to china with the goal that they could gain admittance to bring down cost supplies of rare earth metals.

China has imposed an export quota at 30, 000 tons of rare earth metals in 2011; nonetheless, this unexpected decline in the stock of rare earth metals doesn't show any upsurge in the environment standards. Indeed, it was said that China has only refrain their stockpile on the planet market to make the domestic makers/manufacturers beneficial by making Chinese economy to develop at a higher pace. The WTO (World Trade Organization) had an inquiry over the export quota imposed by China yet at the same time doesn't able to find any verification of law abiding.

Reference -

International Business: Competing in the Global Marketplace