MEC 5113 – MANAGERIAL ECONOMICS

Case Study : Excessive Foreign Garbage

• Presented to : Madam Muzalifah Bte Siran

• Presented by : Faridah Bte Kamis (M17200004)
: Nitawati Bte Misrun (M17200003)
Introduction

 China is the world’s biggest

importer of recycled materials.
 In 2016, Chinese manufacturers
imported over 163 million metric
tonnes of waste materials from
developed countries, including
tha U.S, U.K and Japan making an
industry worth nearly $90 billions
US.
 In July 2017, China announced
they intended to stop the
importation of 24 kinds of solid
waste by 2018, including
polyethylene terephthalate (Pet)
drinks bottles, other plastic bottles
and containers, and all mixed
paper, in a campaign against
yang laji or foreign garbage.
1. Instead of environmental factor, what other factors that
urge China to reject foreign garbage?

Factors that urge China to reject foreign garbage, among others ;

 It has been a contributor to a huge and serious health problem. For

example, Guiyu in Guangdong province, a hub for the recycling of
imported electronics waste, came into the spotlight in 2003 when an
investigation uncovered that up to 80 per cent of children in the town had
excess levels of lead in their bloodstream.

 The ban is a way to push countries to tackle wasteful, forcing plastics and
other disposable goods manufacturers to take responsibility for the
environmental damage caused by their products, take responsibility for the
environmental costs, and invest in transformative solutions and alternatives
that will stop the current flood of waste.
cont ...
Factors that urge China to reject foreign garbage, among others ;

 China is at a position to not let other countries look down on her. By

rejecting foreign “garbage imports”, she's making a stand for her role in the
world saying “we're not a dump for useless exports.” China is defending her
dignity to not allow foreign countries to demeanor her.

 China has its own garbage to worry about. She don’t need more garbage
because garbage treatment is expensive. It makes no sense to import
more garbage.
2. Identify the effect of China’s action to the market of
plastic product based.
 When China decides to ban the importing of plastics
waste, government around the world will buzy in
searching for alternative plastic waste management
solution. Some countries have introduced taxes to
discourage people from using plastic. In the same
time, local authorities will also increase the campaign
to reduce plastic consumption among the public.

 Consequently, the high consumers' awareness on

reducing plastic waste, will cause them to begin
reducing the use of plastics in their daily activities.
They will carry their own bag when they go to
supermarket, bring their own containers to buy food,
avoid using disposable items such as straw, spoons
and forks to reduce unnecessary waste.

 Therefore it is expected that the demand for plastic-

based items in the market will be decreased.
Production of plastic-based products also will be
reduced due to a less demand.
3. Explain how China’s action relates with rational
consumer behaviors.

China action on refusing to accept plastic waste has changed the behavior
of people towards reducing the use of plastics in their daily lives.
 People starts limit the use of plastic to avoid plastic
waste, such as reuse plastic bottles, bring own bag
when go to supermarket, introduce plastic-free
aisles in supermarket and bring own container to
buy food.

 People begin to recycle plastic for use in other

applications such as to provide chemicals to the
petrochemical sector, fuels to the transport and
aviation sectors, food packaging and many others.

 Community start to improve the recycling collection

system, so that it can maximize the collection of
clean, recyclable materials and minimize
contamination.