World Trade Rules & Environmental Policies

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Future Environmental Concerns: Population, Food Supply, Energy & Pollution

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
Your next lesson will play in 10 seconds
  • 0:06 Environmental Protection
  • 0:37 Environmental Policies
  • 2:12 WTO and Trade Liberalization
  • 3:57 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Speed Speed

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Rebecca Gillaspy

Dr. Gillaspy has taught health science at University of Phoenix and Ashford University and has a degree from Palmer College of Chiropractic.

Environmental policies help the environment by managing human activities. Learn how world trade rules and environmental policies relate to each other and the impact they can have on environmental protection in this lesson.

Environmental Protection

Protecting the environment has been a growing concern for decades. With this concern comes a burgeoning awareness that man plays a pivotal role in the sustainability of the natural environment. To fully protect the environment and ensure that natural resources are available for future generations, all countries of the world must do their part to prevent environmental degradation. In this lesson, we will take a look at world trade rules and environmental consequences that can be associated with international trade.

Environmental Policies

Environmental policies are the guidelines put in place to manage human activities for the benefit of the environment. Manufacturing and production of products requires the use of raw materials and energy. The extraction of raw materials and the production of energy create harmful effects on the environment, such as the depletion of natural resources and greenhouse gas emissions. If these processes are not regulated in some way, such as through environmental policies, they could lead to irreparable degradation of the environment.

Therefore, countries create policies to protect the environment. However, developed countries may put different levels of importance on environmental protection than developing countries. This can lead to challenges when it comes to trade between countries. For example, the United States may have strict environmental policies that must be upheld by U.S.-based manufacturing companies. Abiding by these policies can lead to extra steps in the production process or additional equipment costs. These additional steps and costs are added to the price of the product made in the United States.

If that same product is made in a developing country that has lower environmental requirements to meet, then that country will be able to produce the product at a lower cost. Therefore, we see that a country with lower environmental protection policies could have an advantage when it comes to the trade of goods and services. In other words, environmental protection can clash with world trade rules.

World Trade Organization & Trade Liberalization

The World Trade Organization, or WTO, is an international organization that deals with rules of trade between nations. The WTO works to ensure that trade between countries can flow freely. One of the ways to do this is through trade liberalization, which is the reduction of barriers on trade between nations. This can include the removal of a tax or duty on goods produced in a country or the removal of obstacles such as licensing rules or other requirements. This can help trade flow more freely.

To unlock this lesson you must be a Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use

Become a member and start learning now.
Become a Member  Back
What teachers are saying about
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account