>Moreover, by its very nature globalization enables regulatory arbitrage, so you can live in a country with relatively good EHS rules, and produce in a country

>Moreover, by its very nature globalization enables regulatory arbitrage, so you can live in a country with relatively good EHS rules, and produce in a country with bad or no EHS rules. It could be solved by making transitive EHS rules. I.e. rules that require the source also applying these rules. This is still some kind of rarity but they do exist. For instance for years it has been very difficult/impossible to import US meat into the EU because of that. (Mostly because of different antibiotics usage AFAIK.) To some degree such rules also exist in other industries. For example it makes little sense to import a cheaply produced car from a non-EU/non-US vendor into the EU (or probably US) because it won't match the safety regulations and would at least have to go through an expensive individual (re-)certification process, and might even need customizations for that. Of course nobody does this and people buy a cheap FIAT or VW instead. Globalization is really nice I think because it connects countries and people through economy and thus also fostering peace. ;) It could become even much nicer by adapting regulations in the destination markets. Custom tariffs and local subsidies are another way to solve this but those are obviously much less fine-grained (25% on everything :)) and come from a time when there was no globalization. In fact the high EU subsidies on agricultural products still seem to be the reason that impede African countries to export agricultural products into the EU. On the other hand the African market is flooded with subsidised EU produce, making it hard to sell products for small farmers. Probably markets could be far less distorted if the regulations in the industry nations would be modernized... I'm not in favour of any form of turbo capitalism but free markets cannot really be blamed for this because we don't have them anyways.