Unformatted text preview: a trade restriction can increase welfare in the presence of a market failure. Explain whether this kind of example provides a weak or a strong argument in favor of using trade restrictions to remedy environmental problems. 4) How does the WTO attempt to balance the interests of trade liber-alization and environmental protection? This explanation should include a discussion of the principles of non-discrimination, and those parts of the WTO that are relevant to the environment. 5) Explain the di f erence between absolute and comparative advantage, and illustrate the gains from trade in a two-sector Ricardian model. 6) Describe two global environmental problems that will likely become important over the next 50 - 100 years. Discuss the potential role of interna-tional institutions/agreements (including trade agreements) in confronting these problems. 1...
View Full Document
- Fall '07
- International Trade, Regulatory taking, trade restriction, environment-related trade disputes, two-sector Ricardian model