Opening Case: Sugar Subsidies Drive Candy Makers Abroad
QUESTION 1: Reflect on the U.S. policy on sugar. As a producer, how do you feel about the policy? Does your opinion change if you are a candy manufacturer? What is your perspective as a consumer of candy and other products containing sugar? As a displaced worker in Ohio, how do you feel about the policy? Should a government protect a few at the expense of many? Is the policy fair?
QUESTION 2: Why do you think the policy on sugar in the United States is so heavily slanted towards sugar producers at the expense of candy manufacturers and consumers? What can manufacturers do? What does your response tell you about the benefits of free trade?
Closing Case: China Limits Exports of Rare Earth Materials
QUESTION 1: Which groups benefitted the most from China imposing an export quota on rare earth metals? Did it give the Chinese domestic manufacturers a significant cost advantage? Did it result in dramatically increased quality and environmental standards?
QUESTION 2: Given that 97 percent of rare earth metal production is now done in China, an increase from 27 percent to 97 percent between 1990 and 2010, do you think countries such as Australia, Canada, and the United States should reconsider their environmental restrictions of the production of such metals?