International Trade - Trade and the Environment


Producing goods, consuming goods and moving goods all have an environmental cost that is rarely included in the price we pay. This is also true for trading goods internationally. But it is by no means always the case that a locally sourced product is more environmentally friendly than one that has travelled a long distance. Trade can also help to reduce the negative consequences of economic growth by making environmentally-preferable products and technologies more easily available.

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Chapter 7 looks at its positive and negative aspects and examines ways that trade could contribute to preserving the environment. This chapter also highlights an argument made elsewhere in the book, that trade policy is often not the best instrument to tackle a problem.

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