Problem
A. What are the costs/benefits of using an international agreement (for example, Paris climate change agreement, Montreal Protocol on Substances that Deplete the Ozone Layer) versus a multilateral trade liberalization agreement (for example WTO) to affect environmental quality?
B. Food quality standards can create higher economic returns for all producers in a particular market. Discuss. High food quality standards can be a barrier to trade in a developing country. Why? Is there any way to reduce trade barriers from high food quality standards for developing countries?
C. How could the actions of individual multinational companies create externalities that affect the gains from trade in individual countries? Provide at least two examples
D. Fair trade is a major method developing countries can use to improve the economic circumstances of small scale producers. True? If demand for fair trade products were not a problem, would fair trade be the best way to improve the income of small scale producers? Why or why not? What are the problems with demand for fair trade?
E. The introduction of food quality standards are of economic benefit to all producers of a particular commodity.
a. Is it true that all producers benefits?
b. How do food quality standards affect consumer purchases?
c. Why might meat processors be unwilling to add a food safety logo to the raw meat packages sold in a grocery store if all animal product producers do not participate in an industry wide food safety program?