What is a pollution haven, and is there evidence that pollution havens exist?
What will be an ideal response?
Countries that compete by offering foreign firms a reduced set of environmental compliance requirements are known as pollution havens. Empirically, there is evidence that some dirty industries from high-income industrial economies moved to low- and middle-income countries in the 1970s when the industrial economies first began cracking down on environmental polluters. Steel and chemical industries fall into this pattern, although it is possible that the developing countries were gaining a comparative advantage in these areas as high-income countries were losing theirs. Regardless, there is strong evidence showing that the idea of pollution havens is invalid; that is, it is impossible to identify any country that successfully competes for new investment on the basis of low environmental standards.
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Excessive dependence on cheaper foreign imports can cause a(n) ________ in certain sectors of the economy
A) leftward shift in the domestic labor demand curve. B) upward movement along the domestic labor demand curve. C) rightward shift in the domestic labor demand curve. D) downward movement along the domestic labor demand curve.
Which of the following statements is NOT true of consumer finance companies?
A) Their borrowers have higher default risk than bank customers. B) They charge higher interest rates than banks do on similar loans. C) They lend primarily to consumers. D) They are strictly regulated by state governments.