Question: Looking for substitutes for a commodity which forms a major raw material in the goods manufacture…

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Jun 13, 2022

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Question: Looking for substitutes for a commodity which forms a major raw material in the goods manufacture…

by | Jun 13, 2022 | Questions & Answers


Looking for substitutes for a commodity which forms a major raw
material in the goods manufactured by the company is a correct
busines decision; especially when the raw materils are rare earth
metals which are largely found in China. After China put
restrictions on the rare earth metal export, it received a
complaint from the World Trade Organisation (WTO). The complaint
was taken seriously by an international organisation like WTO
because rare earth metals are used mainly in those industries which
contribute in manufacturing of pioneering hi-tech and ‘gren’
business applications. The auto industry finding a substitute for a
raw material though is a sound business decision. the environmental
impacts of it should be considered.

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