Trade globalisation and environment – UGC NET Question

Statements A, B, C and E are correct because they reflect concerns about pollution havens, environmental clauses in trade rules, difficulties in tracing embedded impacts and the role of eco-labels in shaping markets. Statement D is false since there is no universal agreement that openness always improves environmental quality; outcomes depend on policies and structures. Statement F is false because environmental measures can sometimes be manipulated as disguised protectionism. Therefore, the combination A, B, C and E only is correct.

Option A:
Option A is incorrect as it omits E and so fails to consider the role of eco-labelling and certification in influencing consumer choices and firm behaviour.

Option B:
Option B is incorrect because it includes F, which incorrectly claims that environment-related trade measures can never be misused, despite evidence of such concerns in trade debates.

Option C:
Option C is correct since it combines structural, regulatory and market-based aspects of trade–environment linkages while rejecting overly optimistic or naive claims about openness and trade measures.

Option D:
Option D is incorrect as it includes D, which overstates consensus on the environmental benefits of trade openness, and excludes A, which describes a major environmental concern related to relocation of polluting industries.