On March 22, 2015, 60 Minutes aired a controversial piece on the perceived monopoly that China enjoys in rare earth elements (REE) called "Modern Life's Devices Under China's Grasp?"
Watch the video and address the next two questions in addition to the questions presented in the case.
1. Soon after this first aired (3/22/15), articles and blogs began to appear online challenging the position of the piece. Research a few of these criticisms. What is your opinion? Is this critical problem facing the US?
2. Now consider rare earth elements (REE) in the broader scope of natural resources**. Should natural resources used in high demand consumer, business or government products be controlled on a global basis, ie, should monopolies be allowed?
Explain your answer for each class of customer (consumer, business, government). Explain how resources are (or could be) regulated. (For example, the Kimberley Process is a multi-faceted approach to keeping conflict diamonds from being mined by cutting off the sale of them.)
Natural resources are typically what are called in economics "derived demand" products; ie, their demand is contingent on the demand of something else.
For example, your need (demand) for an oak dining room chair is a derived demand for wood, or your desire (demand) to travel by airplane on vacation is a derived demand for oil.