According to a July 12 article by the New York Times Editorial Board, China was recently given a "sweeping legal defeat over its claims to the South ChinaSea" when a five-judge tribunal in the Hague declared that "under the United Nations Convention on the Law of the Sea, China had no legal basis to claim historic rights over most of the waterway, which is rich in resources and carries $5 trillion in annual trade."
a) Why is government intervention (in this case the existence of the Law of the Sea) required for dealing with valuable natural resources, such as the South China Sea? Demonstrate and explain.
b) What is the most efficient way to manage such natural resources? How does this address the issue identified in (a)? Explain.