It used to be said that technology could cause barriers to entry. Relatively major investments had to be made in sophisticated and relatively expensive computer systems to enter certain markets. Only the largest corporations could justify such expenses. They could therefore gain a competitive advantage over smaller rivals who could not justify the technology investment.

Consider that when Henry Ford invested in a large-scale assembly plant, he created a competitive advantage that lasted at least for a decade, if not more. When competitors started imitating him, he lost his competitive advantage. Today, using information technology is not much different than knowing how to run an assembly line – which certainly does not give any automobile manufacturer a competitive advantage.

Today, no one who buys off-the-shelf computer technology that is relatively easy to use has any competitive advantage over his or her rivals. What happens, though, is that those who learn to innovate in the use of existing – and relatively cheap – information technology can obtain higher than normal rates of return for a limited time.

Tungsten is a chemical element that has the highest melting point and the greatest tensile strength of all metals. Its corrosion resistance is so strong that it can be attacked only slightly by most mineral acids. Combining tungsten in small quantities with steel creates a very strong metal. These qualities of tungsten make it useful for electrical, heating, and welding applications and as a component in rifle bullets, military armor, and missiles and rockets. More than 85 percent of the world’s output of tungsten comes from China. Chinese companies mine tungsten under oversight from the Chinese government, which in recent years has taken steps aimed at preventing foreign firms from acquiring rights to join tungsten mining efforts in that country.

How might the fact that tungsten prices have significantly increased have encouraged more producers to locate and extract more tungsten in other nations besides China?