Two students are discussing environmentalists’ cl aims that trade harms the environment. One student says, “Sure, there may be pollution effects, but they’re a small price to pay for a higher standard of living.” The other student agrees, saying, “Yeah, those ‘tree-huggers’ are always exaggerating those effects anyway. Who cares if a toad in the Amazon goes extinct?”

a. What arguments can you offer to counter these students’ opinions?

b. What specific actions could firms take to ensure that trade does not harm the environment?