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Story:
Surfers
Hit Hard by Foam Company Closure, 12/27/05
1. Are there any products that you can think of that are only made by one company? Why do you think that is? 2. What is a monopoly? Are there monopolies in the U.S. economy? Give examples. 3. Are companies allowed to use dangerous chemicals to manufacture products? What happens to the chemicals? Who makes the rules that govern what companies can do with dangerous byproducts of manufacturing?
1. Why did the price of surf boards go up suddenly? 2. Who is Gordon Clark? 3. What were surfboards made of before the invention of foam boards? 4. What are a "blank" and a "shaper?" 5. What percentage of the surfboard blank market did Clark Foam represent? 6. Why does Clark Foams decision to go out of business concern so many people? 7. Why did Gordon Clark close his business? 8. What is TDI and why is it a concern? Discussion Activity (more research might be needed): 1. What is the law of supply and demand? How does it apply to this story? Explain. 2. What is a monopoly? Why are they sometimes risky? 3. In economic terms, what does it mean to "diversify"? 4. Clark Foam's closure will create problems for custom surfboard shops in the next few months, but some say Clark Foam's closure may help the industry in the long run because it may lead to more innovation. Do you agree? Why or why not? Explain. Write a 300-500 word essay on any of these topics providing clear examples. Send your completed editorial to NewsHour Extra (extra@newshour.org). Exceptional essays might be published on our Web site. |