Question

Using examples discuss how international trade can affect the environment (use one example that shows positive impact and one example that shows negative impact)

Answer 1

Answer- It has been generally seen that trade has increased all over the world and this has led to degradation of environment. International trade refers engaging in trade or economic activities all over the world. It can be observed that the environment is affevted more in the intial stages and less in the later stages this is due to the fact that the economy gains enough money to reverse the damage or control it from happening any further.

Major affects of international trade seen are :

• Firms have engaged themselves in international trade and this has led to more demand of resources as the business is now global. Thus, firms are using up the available resources at a greater rate than the rate at which they are reviving.

• International trade has led to setup to many manufacturing units all over the world. Thus, due to unavailability of space the forests are being cut down and manufacturing units are established over there.

• Due to many manufacturing units or factories to produce large quantities of goods, it has led to huge amount of emissions and thus pollutedbthe air of the neighbouring places as well.

• Factories are often seen disposing off there waste material in the water bodies thus it has led to harmful effects on the aquatic life and water pollution.

Example: Factories are mostly set up in underdeveloped countries due to low cost and cheap labor but it leads to polluting their natural bodies like air and water and also leads to noise pollution.

But there are some positive affectsonnthe environment as well:

• International trade has led to better distribution of natural resoirces all over the world.

• Globalisation has helped in better development of economies and increment in the social welfare of people.

• This has helped the less developed countries to grow and make them more economicaly stable like the other developed countries.

Example: Developing countries are benefitted when manufacturing units are setup their as it leads to job creation for them and helps them in getting better standard of life.