Question

. Consider whether trade liberalization is bad for the environment.

Answer 1

Trade Liberalization, i.e, allowing free trade amongst the countries has always been good for the countries. It allows the countries to reduce their balance of payments by exporting more than importing. Countries earn high amount of revenue by exporting the goods in more quantities than importing. It will also allow the countries to manufacture and export those goods in which they have comparative advantage. It would also allow the countries to transfer the environmental friendly technologies amongst the trading countries.

But at the same time there are certain negative aspects of the trade liberalization. It would lead additional burden on the natural resources of the home country as they are involved in higher level of production. Thus it leads to erratic utilization of natural resources for the production of goods and as a result unsustainable depletion of the natural resources.