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Chapter 21: Q.10 (page 522)

Why do low-income countries like Brazil, Egypt, or Vietnam have lower environmental standards than high-income countries like the Germany, Japan, or the United States?

Short Answer

Expert verified

Because maintaining the environmental standards seems a luxury to low-income countries like Brazil, Egypt, or Vietnam than high-income countries like Germany, Japan, or the United States.

Step by step solution

01

Step 1. Meaning

Low-income countries鈥� are developing countries with low capita GDP per year.

High-income countries- are developed countries With high capita GDP per year

02

Step 2. Explanation

Because the prime focus of low-income countries focuses on the necessities of the population like clothing, shelter & food, while high-income countries don鈥檛 need to compromise with necessities, it's convenient for them to maintain environmental necessities & it seems like a luxury to low-income countries.

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Most popular questions from this chapter

Do the rules of international trade require that all nations impose the same consumer safety standards?

From the Work It Out "Effects of Trade Barriers," you can see that a tariff raises the price of imports. What is interesting is that the price rises by less than the amount of the tariff. Who pays the rest of the tariff amount? Can you show this graphically?

Economists sometimes say that protectionism is

the 鈥渟econd-best鈥� choice for dealing with any particular problem. What they mean is that there is often a policy choice that is more direct or effective for dealing with the problem鈥攁 choice that would still allow the benefits of trade to occur. Explain why protectionism is a 鈥渟econd-best鈥� choice for:

a. helping workers as a group

b. helping industries stay strong

c. protecting the environment

d. advancing national defense

What are the conditions under which a country may use the unsafe products argument to block imports?

If trade barriers hurt the average worker in an economy (due to lower wages), why does the government create trade barriers?
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