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After all, environmental protection is vital to two industries of key importance in many low-income countries—agriculture and tourism. Environmental advocates can set up standards for labeling products, like “this tuna caught in a net that kept dolphins safe” or “this product made only with wood not taken from rainforests,” so that consumer pressure can reinforce environmentalist values. These values are also reinforced by the United Nations, which sponsors treaties to address issues such as climate change and global warming, the preservation of biodiversity, the spread of deserts, and the environmental health of the seabed. Countries that share a national border or are within a region often sign environmental agreements about air and water rights, too. The WTO is also becoming more aware of environmental issues and more careful about ensuring that increases in trade do not inflict environmental damage.

Finally, it should be noted that these concerns about the race to the bottom or pressuring low-income countries for more strict environmental standards do not apply very well to the roughly half of all U.S. trade that occurs with other high-income countries. Indeed, many European countries have stricter environmental standards in certain industries than the United States.

The unsafe consumer products argument

One argument for shutting out certain imported products is that they are unsafe for consumers. Indeed, consumer rights groups have sometimes warned that the World Trade Organization would require nations to reduce their health and safety standards for imported products. However, the WTO explains its current agreement on the subject in this way: “It allows countries to set their own standards.” But it also says “regulations must be based on science. . . . And they should not arbitrarily or unjustifiably discriminate between countries where identical or similar conditions prevail.” Thus, for example, under WTO rules it is perfectly legitimate for the United States to pass laws requiring that all food products or cars sold in the United States meet certain safety standards approved by the United States government, whether or not other countries choose to pass similar standards. However, such standards must have some scientific basis. It is improper to impose one set of health and safety standards for domestically produced goods but a different set of standards for imports, or one set of standards for imports from Europe and a different set of standards for imports from Latin America.

In 2007, Mattel recalled nearly two million toys imported from China due to concerns about high levels of lead in the paint, as well as some loose parts. It is unclear if other toys were subject to similar standards. More recently, in 2013, Japan blocked imports of U.S. wheat because of concerns that genetically modified (GMO) wheat might be included in the shipments. The science on the impact of GMOs on health is still developing.

The national interest argument

Some argue that a nation should not depend too heavily on other countries for supplies of certain key products, such as oil, or for special materials or technologies that might have national security applications. On closer consideration, this argument for protectionism proves rather weak.

Questions & Answers

Max U(x,y)=xy+x+2y subjected to Px=2, Py=5 and M=51
Tsion Reply
Max U(x,y)=xy subjected to Px=2, Py=8 and M=160
Tsion
since price controls enacted by the government always has an unintended effects, the best way to control the market is to allow economic activities to run their cause
Japheth Reply
Microeconomics is the Study of allocating limited resources to solve the problems of optimizations.Explain this statement with suitable example.
Aruna Reply
Microeconomics is called price theory.Why?
Aruna
because it is a individual theory producer can set price acc to his benefit
mithlesh
who was the father of macroeconomics?
Eyob Reply
Alfred Marshall
Aruna
John Maynard Keynes
hosneara
What is economic
rafi Reply
Economy is everything...
Htoo
An economy is an area of the production, distribution and trade, as well as consumption of goods and services by different agents. In general, it is defined 'as a social domain that emphasize the practices, discourses, and material expressions associated with the production, use, and management of
Muhammad
Thanks
Abdullahi
will I be able to get Macroeconomic book?
Dhieumarial Reply
difference between monopolistic competition and monopolist markets
Nancy Reply
Cardinal utility theory assumes that consumers can
Siphelele Reply
why are price ceiling and price floor said to be efficient?
Mariateretia Reply
they are called inefficient, price floor or a price ceiling will prevent a market from adjusting to its equilibrium price and quantity, thus creating an inefficient outcome.
Stuti
please how did we get fixed cost, marginal and average cost. thanks
Onovo Reply
can any one help me solve pie chart, bar chart and histogram. thanks
Onovo
any answers please, thank you
Onovo
solution on average cost and marginal cost
Onovo
p= -10+0.05p
Dil
Create the supply curve
Dil
plz help..
Dil
are u sure that it is p? it should have two variables. Qd should be there too
Stuti
if you have two variable, put different values of p to get q and you will have coordinates that u can use to make the supply curve.
Stuti
Fixed cost remain constant,when we r going to gain marginal cost so we should increase in additional unit/variables to get marginal cost with the increase in mc then we easily get average cost
Bilal
Answer the below question to best of your ability by employing the tax concept and supply and demand Suppose the supply of tobacco is elastic and the demand for tobacco is inelastic. If an excise tax is levied on the suppliers of tobacco, will the incidence fall mostly on consumers or mostly on pro
Carolyn Reply
first you suppose the demand for tobacco is elastic that means if price change more change would occur in demand and second you suppose tax has been lived on suppliers that means the price of tobacco will rise up and it's demand will decline that means consumer will start consuming less
Wani
what is perfect competition
Masciline Reply
perfect competition is the form of market where sellers are selling homogeneous product to buyers homogeneous product means a product which is same colour ,same brand and same cost has been used .
Wani
WHAT IS OPPORTUNITY COST AND GIVE EXAMPLES
Werku Reply
What Is opportunity cost and give examples fot it?
Werku
Opportunity cost means profit of what you have give up in order to choose something else
Wani
example of opportunity cost . we take example of land.As land have alternative uses it can be use for production , for building factories on it or for construction of house . suppose you are the owner of land and you build house on it that means you give up the benefit which you may get in produ
Wani
the benefit which you didn't get in production or in building factories is called opportunity cost
Wani
opportunity cost is the cost of what you give up to get something. example: if u wanna buy an apple and a mango and end up buying only a mango. your opportunity cost is the cost of the Apple the you've given up
ebrima
define marginal rate of substitution
Roshan Reply
marginal rate of substitution
Lengha
The rate at which one product can be substituted for another is called MRS.
Ramachandra
how much additional units of a product under consideration is required to deliver the same level of satisfaction that one derives from an additional unit of a given product.
Simply untill the satisfaction one icreased another decreased also depends upon the satisfaction power of a commodity
Bilal
Why indifference curve does not intersect x axis and y axis
Bilal
If the two products are perfect substitutes it will touch both axis. In your question, it is assumed that these are not perfect substitutes. If it touches any axis, it shows that with the given quantity of one product alone gives the same level of satisfaction.
Ramachandra
the intersection at the axis would mean that the product is perfectly substitutable and hence the indifference analysis is non-existent.
what industry monopolies belongs
Gwayi Reply

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Source:  OpenStax, Microeconomics. OpenStax CNX. Aug 03, 2014 Download for free at http://legacy.cnx.org/content/col11627/1.10
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