This second question arises from co

This second question arises from concerns that dirty industries will leave tightly regulated countries and migrate to countries with less strict regulations. As a result, international trade could change the composition of output across countries, leading poor countries with relatively weak environmental regulation to specialize in the production of dirty goods while rich and highly regulated countries specialize in clean goods. Even if trade liberalization had no effect on the scale of economic activity or on the dirtiness of the techniques of production, it could create pollution havens in the developing world by changing the composition of their output toward dirty goods.