Answer below two questions.
Answer each question respectively.
Each question 1 page.
Labeling each question.
1) We observe both global (GATT/WTO) and regional (NAFTA, Mercosur) trade institutions. Describe these institutions. Identify the underlying problems that these institutions address. What are some of the mechanisms they use to confront these problems? Be specific.
2) What is an externality? Why do many environmental issues have externalities associated with them? How do externalities affect governments’ ability to cooperate to protect the environment? Discuss two factors that make it easier for governments to cooperate to overcome their collective-action problems regarding the environment, and provide an example of an issue where each of these factors was observed.
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