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Intensification of international trade leads to environmental degradation and resource depletion in developing countries.

without comments

Provide three arguments in favour AND three against this proposition.

Intensification of international trade leads to environmental degradation and resource depletion in developing countries because of: (i) developing countries tend to specialize in ‘dirty industries’ that Multi-national corporations (MNCs) transfer their pollution intensive production facilities to poorer countries, because of the uncontrolled environmental regulations or even non-existing environmental regulations in developing countries; (ii) comparative advantage of developing countries produces and export environmentally intensive goods to a greater degree than is efficient, and at prices that are below social cost (iii) deforestation for export crops, rain forest that rich in biodiversity in developing countries is destroyed to give way for the production of certain cash crops such as palm, timber, coffee.

However, there are arguments that international trade can bring beneficial effect for environment as: (i) Techniques or technologies shift to cleaner and environmental friendly, this happen when developing countries imports environmentally friendly products such as fuel-efficient autos.  Trade also brings technological innovation, or multi national corporation who bring global standards to where the domestic site is less friendly. (ii) Multilateral agreements for trade sanction, as in Montreal Protocol on ozone depletion, Kyoto Protocol.

Written by ibu didin

February 13th, 2010 at 12:49 pm