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Chapter 1, Problem 1ED

a)

Summary Introduction

Case summary:

Recycling rate of Country A’s battery industry is now exceeds 95%. The changes in the specialization moved the recycling system to the offshore, which would affect the domestic battery recycling. It would result in increased use of used batteries in Country M than in Country U.

As environmental standards and control are less in Country M, usage of lead would lead to major health issues. It includes kidney damage, high blood pressure, neurological problems, and detrimental effects on fetuses during pregnancy.

To determine: The action of Person X, if he is an owner of independent auto repair shop and trying to safely dispose few old batteries each week.

a)

Expert Solution
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Explanation of Solution

Determine the action of Person X for the given scenario:

As an independent auto repair shop owner and an ethical operation, he should put on pressure on for a battery supplier to take the old batteries. If not, as there is a market for lead in the old batteries, he can arrange for pickup or delivery of Person X’s old batteries.

b)

Summary Introduction

Case summary:

Recycling rate of Country A’s battery industry is now exceeds 95%. The changes in the specialization moved the recycling system to the offshore, which would affect the domestic battery recycling. It would result in increased use of used batteries in Country M than in Country U.

As environmental standards and control are less in Country M, usage of lead would lead to major health issues. It includes kidney damage, high blood pressure, neurological problems, and detrimental effects on fetuses during pregnancy.

To determine: The action of Person X, if he is a manager of large retailer responsible for disposal of thousands of used batteries each day.

b)

Expert Solution
Check Mark

Explanation of Solution

Determine the action of Person X for the given scenario:

As a manager, he should find a battery supplier with reverse supply chain to dispose the old batteries. Disposal of old batteries is the minor issue for large retailer. However, finding battery supplier with reverse supply chain is difficult. Burying the batteries behind the store is harmful.

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