Analyse the impact of globalisation on environment.

Free Trade and Environment: The recent trends in globalisation of production and steep reduction in all barriers to allow free flow of trade and investment are opposed by many environmental groups all over the world. They perceive globalisation as harmful to the environment for many reasons

First, free trade is seen as a means of more output and income, which means more resource depletion and degradation of the natural environment.

• Second, freer trade, investment and globalisation of production will lead to increase in transport activity and encourage the relocation of environmentally degrading industries to countries with lower environmental standards or more fragile natural environments, and thus, contribute to further environmental damage.
• Third, freer foreign investment reduces the incentive to develop environmentally friendlier technologies.
• Fourth, free trade may result in industrial and agricultural reorganisation to capture the economies of scale made possible by larger markets. This might involve larger productive units: factories that are aesthetically unpleasing and farms that remove hedgerows and use intensive agricultural techniques.
• Fifth, free international trade neglects the environment in the same way as domestic free markets fail to account for environmental losses. In other words, trade liberalisation can be expected to increase market failur

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