How do variations in environmental regulations or other government policies between countries influence international trade?

Show Answers

They do not influence the flow of international trade.They have generally improved the global competitiveness of U.S. steel manufacturers.They can change manufacturing expenses, thereby impacting comparative advantages and trade flows.They have been completely removed by countries involved in NAFTA.

Explanation

Differences in environmental and regulatory standards among countries can increase or decrease production costs. These cost changes influence comparative advantages, which in turn shape international trade patterns.