Interactions Between Trade And Environment

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Executive Summary This paper aims to analyze the interactions between trade and environment based on empirical studies and policy instruments by providing comprehensive background information on international trade and environment. Different opinions and perspectives are presented to support the goal of this paper, which is to draw implications on how trade and environment interacts, and the impacts of trade on environment. Introduction Trade liberalization and economic globalization trends are becoming more prevalent. As environmental protection is moving towards institutionalization and legalization, and penetrates into the rules and policies of international trade among countries, conflicts between their interactions increase…show more content…
International trade contains two major types of trade, import trade and export trade. These two types of trades can adjust the utilization of domestic factors of production, improve international relations between supply and demand, restructure economies, increase revenue and so on. International trade operates similarly as domestic trade, however, as international trade performs across different countries and regions, it is more complicated than domestic trade. International trade will encounter different policies and legislation conflicts across the borders. As the magnitudes of international quantities and prices are relatively large, with long distance transportation and time consuming, both parties of the transaction have to take on more risks than purely trading domestically. Usually, international trade will be greatly affected by the transaction parties’ political and economical activities, which might increase the unstable possibility. Moreover, international trade involves highly cooperation from banks, customs etc., and lacking of any of those linkages may undermine the effectiveness at a large scale. Given international trade’s large extent involvement of multiple sections, it has very important impacts on the participants globally. From the optimistic side, international trade can expand the citizens’ consumption possibilities, create working opportunities, and
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