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Business, 24.06.2020 22:01 Chartwig4831

Production of high-technology products such as smartphones depends crucially on the use of "rare earths," a small group of exotic metals. As it happens, China dominates the production of these rare earths; given possible international tensions, there have been calls for special policies to encourage rare-earth production in the United States. Can such calls be justified in economic terms? Special policies to encourage rare-earth production in the United States. A. can be justified if China has no ability to raise world metal prices. B. cannot be justified if trade wars would ensue from Chinese ecport taxes. C. cannot be justified if there are technological spillovers from mining these metals. D. can be justified if China otherwise would have substahtial market power. E. can be justified if there is a large environmental impact of mining these metals.

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