Seminar in Global Economic Policy Discuss environmental policies and labor stand

Question

Seminar in Global Economic Policy


Discuss environmental policies and labor standards and their conflict with trade.

Start with the idea that free trade, by specializing in production of goods with the lowest opportunity cost, implies consumption of more goods by all trading parties involved. However this idea of “more consumption” conflicts with environmental policies and labor standards. Here you could start describing environmental policies: why do they arise? What are the usual policy tools? Who imposes them? How does it impact production and hence trade? You should discuss about race-to-the-bottom concerns, Pollution Haven Effect/hypothesis, EKC. Opinions forwarded by environmentalists, free trade proponents and the sustainable development brigade; The need to tie environmental policy and international trade and the possible role of WTO.

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