Chapter 10 Multiple Choice Questions

. Which of the following statements accurately describes the relationship between trade and the environment?

International trade provides overwhelming environmental benefits.

There is no relationship between trade and the environment.

The relationship is complex, because trade can intensify or help to address environmental degradation.

Eliminating barriers to international trade is necessary to protect the environment.

. According to economists who are sceptical of the benefits of free trade, what impact does free trade have on production standards?

Standards will increase because firms must compete to provide the most environmentally friendly products.

Standards will decrease because firms must increasingly compete with firms that are subject to differing levels of regulation.

Standards will stay the same because free trade will have a negligible impact.

Standards will diverge because firms can produce goods for different markets.

. Which of the following statements describes the 'pollution halo' hypothesis?

When pollution is released into the environment, it tends to coalesce into the shape of a halo.

Firms that relocate from developed countries to developing countries bring poor environmental practices.

If a price is placed on carbon, goods will be produced in a less carbon intensive manner.

Firms that relocate from developed countries to developing countries bring better environmental practices.

. How does the Convention on International Trade in Endangered Species use trade measures to protect biodiversity?

By requiring that certain species of plants and animals are traded above set prices.

By restricting trade in certain species of plants and animals.

By providing ships to facilitate wildlife trade.

By restricting trade in weapons used to hunt wildlife.

. Which of the following is NOT a contributing factor to the rise of international trade in hazardous waste?

Decline in the production of hazardous waste

Economic globalization

Public resistance to nearby siting of hazardous waste facilities

Rising cost of waste disposal

. What does 'additionality' mean in the context of the Clean Development Mechanism projects?

The projects do not sum up the cumulative reduced emissions.

The projects are being implemented by developed countries.

The projects do not result in reductions in emissions that would not otherwise have occurred.

The projects are being implemented in an illegal manner.

. Why were developing countries placed in a difficult position as a result of the trade restrictions introduced by the Montreal Protocol?

Developing countries generally support unrestricted free trade.

Developing countries lacked the financial and technological means to implement a wildlife trafficking notification system.

Developed countries would be unable to buy the chlorofluorocarbons produced by developing countries.

Developing countries lacked the financial and technological means to create substitutes for chlorofluorocarbons.

. What do the environmental exemptions contained in Article XX of the 1995 General Agreement on Tariffs and Trade allow member states to do?

Place sanctions on states that restrict the export of environmentally friendly products.

Violate the sovereignty of a state that is responsible for transboundary pollution if the state is unwilling to cooperate with others.

Ignore the intellectual property rights of polluting states.

Implement environmental laws, policies, and regulations that would otherwise conflict with their obligations under the World Trade Organization if certain conditions are met.

. What does the 'chilling effect' refer to in the context of investor-state dispute settlement provisions within international investment law?

States may be hesitant to enact new environmental regulations for fear of being sued by foreign investors.

States may be hesitant to negotiate new trade agreements in order to prioritize their ability to enact environmental regulations.

Investor-state dispute settlement provisions could be used to help prevent climate change.

As more investor-state dispute settlement processes are utilized, the rate of environmental change decreases.

. Which of the following statements best describes the difference between the EU and US approaches to including environmental provisions in preferential trade agreements?

The EU includes many environmental provisions within its preferential trade agreements whereas the US only includes few environmental provisions.

The EU follows a legalistic approach to compliance whereas the US follows a cooperative approach.

The EU follows a cooperative approach to compliance whereas the US follows a legalistic approach.

The US includes provisions related to climate change within its trade agreements whereas the EU does not.

Quiz Content