Two students are discussing environmentalists claims that trade harms the environment. One student says, Sure, trade may

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Two students are discussing environmentalists’ claims that trade harms the environment.

One student says, “Sure, trade may cause some pollution, but it’s a small price to pay for a higher standard of living.” The other student agrees, saying, “Yeah, environmentalists are always exaggerating those effects anyway. What does it matter if a toad in the Amazon goes extinct?” What arguments can you offer to counter these students’ opinions? What specific actions could firms take to ensure that trade does not harm the environment?

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