UGC NET Questions (Paper – 1)

Statement C is wrong because many trade agreements do contain environmental chapters, side agreements or provisions, and global forums increasingly integrate environmental concerns into trade rules. Statements A, B, D and E are correct: they refer to pollution haven risks, eco-labelling, the influence of foreign standards on domestic practices and ongoing debates about a race to the bottom. Hence, the combination that identifies C alone as wrong is the correct answer.

Option A:
Option A is incorrect as it labels both A and C as wrong. Statement A is correct in noting that under certain conditions industries may relocate to jurisdictions with weaker environmental regulations, a concern captured in the “pollution haven” hypothesis. Including a correct statement in the wrong set makes this option invalid.

Option B:
Option B is incorrect because it treats both C and D as wrong. While C is false, D is correct since exporters often adjust production processes to meet environmental standards of importing countries. Misclassifying D contradicts empirical evidence on trade and regulation.

Option C:
Option C is correct since it isolates C as the single incorrect statement and implicitly accepts A, B, D and E as reflecting real trade–environment interactions and debates. It matches the nuanced view expected at UGC NET level.

Option D:
Option D is incorrect as it groups B, C and D as wrong statements. B and D are both correct descriptions of how eco-labelling and external standards work, so this combination is inconsistent with the conceptual framework.

Option E is incorrect because it regards A, C and E as jointly wrong. E is correct in observing that there are ongoing debates about whether trade pressures can erode environmental standards, so including it in the wrong set makes the option unacceptable.