Gains from the Single European Act were expected to be from
A) reduction of transactions costs from having a single currency.
B) reduced trade barriers and customs problems.
C) increased competition and economies of scale.
D) harmonization of environmental and labor standards.
Question 2
One claim that trade barrier proponents use to enforce environmental standards is that
A) environmental standards do not reduce industrial competitiveness and do not induce race-to-the-bottom, where countries are forced to rescind their standards in order to maintain employment.
B) high standards in industrialized nations motivates some firms to export pollution to developing countries by relocating their dirty industries.
C) enforcing environmental standards is essential, as there are no differences between labor standards and environmental standards.
D) all environmental impacts are non-transboundary.
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