For many years the International Tin Council, a cartel made up of 22 leading tin-producing and tin-consuming nations, was able to keep the world price of tin high by restricting supply. Recently, however, the cartel collapsed due to a decrease in demand for tin and an increase in production by non-cartel countries. The decrease in demand for tin came mainly as manufacturers began to use more plastics and other metals in their production. Explain why a cartel that was so successful for many years all of a sudden faced this type of collapse.

Question

Quizplus · Accepted Answer

The Answer of For many years the International Tin Council, a cartel made up of 22 leading tin-producing and tin-consuming nations, was able to keep the world price of tin high by restricting supply. Recently, however, the cartel collapsed due to a decrease in demand for tin and an increase in production by non-cartel countries. The decrease in demand for tin came mainly as manufacturers began to use more plastics and other metals in their production. Explain why a cartel that was so successful for many years all of a sudden faced this type of collapse.

For Many Years the International Tin Council, a Cartel Made