1. Visit the World Trade Organization's web page on "Trading into the Future."
   
   Suppose one country believes another country's trade damages the environment. Summarize the five-step approach recommended by the WTO. Do you think these steps are sufficient to deal with the problem? Why or why not? If not, what additional steps do you think should be allowed?
   
   
2. Read through the 1999 report by the Organisation for Economic Co-operation and Development titled "Report on Trade and Environment."
   
   Summarize the report's perspective on the environmental effects of trade liberalization (pages 10-13). What particular issues does the report address with transportation? The report mentions that a "major issue is the non-internalisation of environmental externalities in the road sector" (paragraph 55). What does this statement mean? What specific policies would you suggest to correct this problem?