{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Theremaybeexternalitiesbetweennations

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: d to protect against undesired transfers of bio matters. Some mechanisms include: • Quarantines • Ban on transfers of certain materials. Compensation for the use of genetic materials are issues of policy concern. • How much should developing nations be paid for the use of their species in developing medicines, new crop varieties, and other products? • How should the royalties for genetic materials within nations be distributed? Shadow pricing and gain from Shadow smuggling smuggling US Labor market Mexico labor market Extra wage For illegal worker Global interdependency Environmental consideration leads to interdependency between nations. There may be externalities between nations: • Production externalities as in the case of acid rain. • Consumption externalities­­people are concerned about human conditions and other countries, hunger, genocide, etc. People are concerned with environmental conditions in other countries. Correction of externality situations may require policies besides trade. • Transfer payments to reduce pollution activities. • Aid to address undesirable situations (hunger, deforestation, etc.) . Humans share some resources globally. Without intervention to address free­rider problems, there may be nonoptimal uses of global common resources. • Destruction of fisheries demonstrate the failure of laisse­faire approaches for global common resources. • Addressing problems of ozone depletion and global warming require collective action between nations. • Example: The gradual use of bans on methyl bromide, ban on aerosols, and others Possible global common Possible problems problems Global interdependency Humans share some resources globally. Without intervention to address free­rider problems, there may be nonoptimal uses of global common resources. • Destruction of fisheries demonstrate the failure of laisse­faire approaches for global common resources. • Addressing problems of ozone depletion and global warming require collective action between nati...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern