World trade opening out has brought about the issue of the connection between trade and the environment. This relationship is a complex and an exceedingly debated matter. Environmental issues have proved to impact the way global businesses operate. Increased universal economic inter-dependence and heightened trade liberalization makes it even more binding for the two. Additionally, mounting environmental strain- itself-and the need to use resources in an efficient way has seen both affect each other. Although this is the case, it’s widely known that trade and environment can mutually support each other, but the problems remain on how to ensure an acceptable equilibrium of the two.
Environmental practices usually occur as an aftermath of human activities; trade or business being one of these activities. So, the effects on trade can be viewed as a result of the business people trying to avoid degrading the environment in the name of economic gains and development. Mostly, environmental policies will impose restrictions that limit the scope of many businesses. Some of these have seen restrictions of imports to some countries hence negatively affecting trade. For example, in 1999 the United States banned imports of tuna from countries that used methods that killed many dolphins. Also, industries that are lawfully abided by policies on firm issues of the environment- let’s say a maximum value of carbon emission would have to bring upon themselves the additional cost of paying carbon credits. Another impact would be limited production to avoid fines to the authorities on carbon emitted. It’s clear that environmental tendencies mostly affect business adversely.
At the nationwide level, it’s easier to control and respond to the environmental impacts on trade compared to an international level. Most governments have policies that stipulate the level of mutual inter-dependence between trade and environment. At international level, importers, exporters and consumers may end up shouldering the burden of environmental tendencies affecting trade.
The connections between environment and trade are many, complex but useful to the development of any nation. Trade liberalization has both good and bad effects to the global environment. The type of effect that trade gets from environmental tendencies depends mostly on the degree to which goals of both are attained. Nevertheless, a complementary and mutually supportive of both does not always ensure a balance or positive results on trade. The balance usually tends to be a bit biased towards the environment due to its fragile nature.
On a comfortable balance between trade and environment, a lot can be inter-linked between the two. One link is that a trade generates returns that could better lives for human beings i.e. living in a desirable environment. Returns from trade can also be used in improving the existing environment. Efficiency in resource usage ensures that fewer resources are used hence fewer waste is created. Scenarios like these ensure that the wealth produced is not used, entirely to correct pollution, but some are left to make it better than before. Additionally, it involves manufactures who more than often, come up with environmental-friendly technologies. The links between the two go hand in hand none can be viewed as more important than the other since humans needs both to live comfortably.
The world presents a number of environmental issues that influence trade today. Some of the major ones include industrial waste, the needed to ensure a sustainable source of raw supplies and water and air emissions. These key issues affect trade in the sense that, law and policies mandates business people to invest in technologies or device ways to maintain standards as per the law. Mostly business people will incur costs in trying to meet these standards, and that’s bad news for the business community.
Environmental and economic tendencies go hand in hand in the business world. The product of one influences the result of the other. Like a coin, environmental tendencies lie on one side and economic tendencies lie on the other. If the business people entirely chose one side, they will completely not have the other one. If business people chose the economic tendencies side, they will be mainly focusing on making sure they, satisfy their customers to the maximum. Creating jobs and dealing with interest rates and inflations will also be a primary priority among the business people. All these activities to ensure economic factors are responded to will leave the environment in a dire situation since no one is taking the responsibility. The opposite will happen if policy makes strictly compels business people to put too much emphasizes on the environment leaving trade with no room to breathe.
To ensure both of the environment and trade thrive together comfortable balance should be set to allow business people to do business while they take sufficient responsibility of the environment. Most governments have policies that allow this to happen which creates even more business for companies that provide solutions to environmental issues. A fine example of such a group is Trimble. It helps in managing industrial wastes worldwide that enable manufacturing companies carry on their activities while Trimble ensures the environment remains clean. Rock River Environmental Solutions, located in Northern Illinois is another company that deals with providing solutions to companies that requires waste management. Making sure a comfortable balance is met, both the trade and environment benefits in the long run. More jobs and a clean environment are termed as a mutually supportive scenario for the two. Trade and environment can therefore not thrive separately, they need each other.