Trade liberalization can be defined as removal or the reduction of trade practices that restrict the flow of goods from one nation to the other. This can be achieved through dismantling of tariffs that can include duties, export and import duties as well as transit duties and also the establishment of non-tariff barriers. In most cases, globalization does not harm the environment. Globalization tends to reduce the air pollution in some extent. There is little evidence that free trade encourages or has a detrimental effect on the environment (Bhagwati, 2002).
Trade liberalization in most cases encourages the use of changes in the extraction and production technologies that will have a reduced pollution per output unit encouraged for several reasons. Liberalization of trade and investment has been found to be encouraging big and multinational companies which are believed to be the highest contributor to the environmental pollution to transfer their businesses and production top countries where there is high technology and with less pollution effects.
When the economic liberalization increases, the residents can also demand for cleaner environment through contributing to lessen the pollution effect and emissions (Fine, 2006). The trade liberalization consists of policies that govern the environmental pollution thus helping in minimizing establishments of goods that creates environmental pollution. There are many countries that have encouraged trade liberalization yet they put in place policies that will restrict production of goods that are prone to pollution (Brakman et al, 2006).
Liberalization helps most countries learn from each other on different measures that are taken to conserve the environment as well as the method and techniques that can be used ion production with less pollution effects. Its not necessary economic growth is moving hand in hand with environmental pollution, there are some ways production can be done with less or no environmental pollution at all. Use of solar energy, wind energy and hydro power can also help in reducing the environmental pollution compared to use of wood, coal and fossil fuel as a source of energy.
In the developed countries, its easy to use pollution free production procedures and only strict policies can help the developing countries from being exposed to the risks of pollution by the developed countries as liberalization does not restrict production of goods that pollute environment (Pugel, 2003). On the other hand, liberalization has been contributing to the environmental pollutions since countries with strict environmental pollution policies transfer their production to the countries which are less considerate on environmental pollution issues.
For example, directing the waste products top the rivers and lakes are restricted to most countries, the companies that may not want to incur any expense in disposing their waste products to the right places may opt top transfer their production to countries that do not care about the disposal of wastes in rivers and lakes therefore imposing more risks of environmental pollution (Pugel, 2003). Trade liberalization may not directly encourage the trade in products that enhance environmental pollution. These are done through not setting of strict measures and also luck of rules that govern the trade of such products.
In most cases, trade liberalization does not highlight what kind of products that are supposed to be traded and manufactured in the participating countries or regions (Brakman et al, 2006). List of references: Bhagwati, J. (2002). Free trade today. Princeton: Princeton Univ. Press. pp. 3 Brakman, S. ; Harry, G. , Charles, M. , Arjen, W. (2006). Nations and Firms in the Global Economy : An Introduction to International Economics and Business. Cambridge: Cambridge University Press Fine, B. (2006). The New Development Economics: After Washington Consensus, pp. 46-50. Zed Books. Pugel, A. (2003). International economics. Boston: McGraw-Hill.
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