Author Question: The argument that developing countries with lax environmental standards will attract foreign ... (Read 48 times)

jman1234 · **on:** Jun 30, 2018

The argument that developing countries with lax environmental standards will attract foreign manufacturers who want to escape stricter standards in their own countries is known as the pollution havens hypothesis.

Indicate whether the statement is true or false

Question 2

Which of the following is a reason that developing countries are running large surpluses?

A) They are required to do so by IMF.
B) They have defaulted on international loans.
C) They have pegged exchange rates and thus the growth of exports must drive surplus up.
D) They have a strong desire to accumulate international reserves to protect against a sudden stop of capital inflows.
E) They don't know how to manage their surpluses.