Substitutes for commodity which forms major raw material

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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.

Reference no: EM132233144

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