Question

Hypothesis about pollution​

Answer 1

Answer:

The Pollution Haven Hypothesis argues that firms will seek to avoid the cost of stringent environmental regulations (and high energy prices) by locating production in countries where environmental norms are laxer.

Answer 2

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The pollution haven hypothesis states that when large developed countries want to set up factories or offices abroad, they will look for the cheapest resource and labor options that offer the necessary land and materials. However, this practice usually also threatens the environment.