IELTS Reading Practice Test: The Impact of Global Trade on Environmental Sustainability

In this IELTS Reading practice test, we’ll explore the complex relationship between global trade and environmental sustainability. This topic is increasingly relevant in today’s interconnected world and often appears in IELTS exams. Let’s dive into three passages of varying difficulty, each examining different aspects of this crucial issue.

Global trade impact on environment

Passage 1 (Easy Text)

The Basics of Global Trade and the Environment

Global trade has become an integral part of our modern economy, connecting countries and businesses across the world. However, this interconnectedness has both positive and negative impacts on the environment. On one hand, trade can lead to increased economic growth and technological advancements that may benefit the environment. On the other hand, it can also result in increased pollution, deforestation, and resource depletion.

One of the primary concerns is the carbon footprint associated with transportation. As goods are shipped across vast distances by air, sea, and land, the emissions from these vehicles contribute significantly to global warming. Additionally, the demand for certain products can lead to unsustainable practices in developing countries, such as deforestation for agriculture or mining.

However, global trade can also facilitate the spread of environmentally friendly technologies and practices. For example, the international exchange of renewable energy technologies has helped many countries reduce their reliance on fossil fuels. Furthermore, trade agreements can include provisions for environmental protection, encouraging sustainable practices on a global scale.

As consumers become more environmentally conscious, there is a growing demand for sustainable products. This has led to the development of eco-friendly industries and the adoption of greener practices by existing businesses. Certification systems, such as Fair Trade and Forest Stewardship Council (FSC), have emerged to help consumers make informed choices about the products they buy.

In conclusion, while global trade poses challenges to environmental sustainability, it also offers opportunities for positive change. The key lies in finding a balance between economic growth and environmental protection through responsible trade practices and international cooperation.

Questions 1-5

Do the following statements agree with the information given in the passage?

Write:

TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this

1. Global trade only has negative impacts on the environment.
2. Transportation of goods contributes to global warming.
3. Trade can help spread environmentally friendly technologies.
4. All international trade agreements include environmental protection provisions.
5. Consumer demand for sustainable products is increasing.

Questions 6-10

Complete the sentences below.

Choose NO MORE THAN TWO WORDS from the passage for each answer.

6. The demand for certain products can lead to ___ in developing countries.
7. Global trade can facilitate the spread of ___ technologies and practices.
8. Trade agreements can include provisions for ___, encouraging sustainable practices globally.
9. ___ systems have emerged to help consumers make informed choices about products.
10. Finding a balance between economic growth and environmental protection requires ___ and international cooperation.

Passage 2 (Medium Text)

The Complex Relationship Between Trade Liberalization and Environmental Sustainability

The nexus between trade liberalization and environmental sustainability has been a subject of intense debate among economists, policymakers, and environmentalists for decades. As countries have increasingly embraced free trade policies, concerns have grown about the potential environmental consequences of these economic shifts. This complex relationship encompasses a wide range of factors, from resource allocation and technological diffusion to regulatory frameworks and consumer behavior.

Proponents of trade liberalization argue that it can lead to more efficient resource allocation on a global scale. This efficiency hypothesis suggests that countries will specialize in producing goods for which they have a comparative advantage, potentially reducing overall resource consumption and environmental degradation. For instance, a country with abundant renewable energy resources might focus on producing energy-intensive goods, while importing products that would be more environmentally costly to produce domestically.

Moreover, trade liberalization can facilitate the transfer of environmentally friendly technologies across borders. As companies gain access to international markets, they may be exposed to more advanced, cleaner technologies and be incentivized to adopt them to remain competitive. This technological diffusion can contribute to reduced emissions and more sustainable production methods globally.

However, critics argue that trade liberalization can also lead to a “race to the bottom” in environmental standards. Countries may be tempted to lower their environmental regulations to attract foreign investment or gain a competitive edge in the global market. This phenomenon, known as the “pollution haven hypothesis,” suggests that polluting industries may relocate to countries with lax environmental laws, effectively exporting environmental degradation.

The impact of trade on biodiversity is another critical concern. Increased trade can exacerbate the overexploitation of natural resources, particularly in developing countries rich in biodiversity. The demand for exotic species, timber, and other natural products can drive unsustainable harvesting practices and habitat destruction. Conversely, trade can also support conservation efforts by providing economic incentives for sustainable resource management and eco-tourism.

Trade-related transportation is a significant contributor to greenhouse gas emissions. The expansion of global supply chains has led to increased shipping, air freight, and long-distance trucking, all of which have substantial carbon footprints. However, advancements in transportation technology and logistics, partly driven by international competition, have also improved fuel efficiency and reduced emissions per unit of goods transported.

In response to these complex challenges, the concept of “green trade” has emerged. This approach aims to harness the power of trade to promote environmental sustainability through various mechanisms, including:

• Environmental provisions in trade agreements
• Promotion of trade in environmental goods and services
• Support for eco-labeling and certification schemes
• Capacity building for sustainable production in developing countries

The effectiveness of these measures depends on robust international cooperation and a commitment to balancing economic and environmental objectives. As the global community grapples with pressing environmental issues like climate change, the role of trade in either exacerbating or mitigating these challenges remains a critical area of study and policy development.

Questions 11-15

Choose the correct letter, A, B, C, or D.

11. According to the passage, the efficiency hypothesis suggests that trade liberalization can:
    A) Increase overall resource consumption
    B) Lead to more efficient resource allocation globally
    C) Cause all countries to produce the same goods
    D) Eliminate the need for international trade

12. The technological diffusion facilitated by trade liberalization is said to:
    A) Only benefit developed countries
    B) Slow down the adoption of new technologies
    C) Contribute to more sustainable production methods
    D) Increase emissions in all cases

13. The “pollution haven hypothesis” suggests that:
    A) All countries will improve their environmental regulations
    B) Polluting industries may move to countries with stricter laws
    C) Environmental degradation will decrease globally
    D) Countries might lower environmental standards to attract investment

14. According to the passage, trade’s impact on biodiversity:
    A) Is always negative
    B) Only affects developed countries
    C) Can both harm and support conservation efforts
    D) Has no relation to economic incentives

15. The concept of “green trade” aims to:
    A) Completely stop international trade
    B) Only focus on environmental issues, ignoring economic factors
    C) Use trade to promote environmental sustainability
    D) Increase pollution through increased transportation

Questions 16-20

Complete the summary below.

Choose NO MORE THAN TWO WORDS from the passage for each answer.

The relationship between trade liberalization and environmental sustainability is highly complex. While trade can lead to more efficient (16) globally, it can also result in a (17) in environmental standards as countries compete for investment. Trade impacts biodiversity by potentially causing (18) of natural resources, but it can also provide economic incentives for conservation. The increase in (19) due to global trade contributes significantly to greenhouse gas emissions. To address these issues, the concept of (20) ___ has emerged, which aims to use trade as a tool for promoting environmental sustainability.

Passage 3 (Hard Text)

The Paradox of Global Trade and Environmental Governance: Navigating Conflicting Imperatives

The intricate interplay between global trade and environmental governance presents a formidable challenge to policymakers and scholars alike. This complex relationship embodies a fundamental tension between two seemingly conflicting imperatives: the drive for economic growth through increased trade and the urgent need for environmental conservation and sustainability. As the world grapples with unprecedented environmental crises, including climate change, biodiversity loss, and resource depletion, the role of international trade in either exacerbating or mitigating these issues has come under intense scrutiny.

The neoliberal paradigm that has dominated global economic policy since the late 20th century posits that free trade and market liberalization are key drivers of economic growth and, by extension, human well-being. Proponents argue that the “rising tide lifts all boats” effect of trade-driven growth can provide the resources necessary for environmental protection and technological innovation. This perspective is embodied in the Environmental Kuznets Curve (EKC) hypothesis, which suggests that as per capita income increases beyond a certain threshold, environmental degradation begins to decrease.

However, critics argue that this model fails to account for the externalities associated with trade-driven growth, particularly in the realm of environmental impacts. The “scale effect” of increased production and consumption can outweigh efficiency gains, leading to net increases in resource use and pollution. Moreover, the global nature of supply chains means that environmental costs are often displaced to countries with weaker regulatory frameworks, creating a spatial disconnect between the benefits of consumption and the environmental burdens of production.

The governance of this trade-environment nexus is further complicated by the fragmented nature of international environmental law and the powerful economic interests vested in maintaining the status quo. While multilateral environmental agreements (MEAs) such as the Paris Agreement on climate change and the Convention on Biological Diversity aim to address global environmental challenges, they often lack the enforcement mechanisms and universal participation of trade agreements under the World Trade Organization (WTO).

This asymmetry in governance structures has led to situations where trade rules can potentially undermine environmental protections. For instance, WTO disputes have challenged renewable energy subsidies and other environmental measures as potential barriers to trade. Conversely, attempts to incorporate environmental standards into trade agreements, such as through “green clauses” or border carbon adjustments, face resistance from countries concerned about disguised protectionism or infringement on their development rights.

The concept of “sustainable trade” has emerged as a potential bridge between these competing imperatives. This approach seeks to align trade policies with sustainable development goals, emphasizing:

1. Life-cycle analysis of traded goods to account for their full environmental impact
2. Circular economy principles to promote resource efficiency and waste reduction
3. Technology transfer mechanisms to support sustainable production in developing countries
4. Harmonization of environmental standards to prevent regulatory arbitrage

Implementation of these principles, however, requires a fundamental recalibration of global economic governance. Proposals such as a “Global Green New Deal” call for coordinated international action to align trade, finance, and environmental policies. This would involve reforming institutions like the WTO to prioritize sustainability, creating new mechanisms for valuing natural capital, and developing more robust frameworks for corporate accountability in global supply chains.

The role of non-state actors in this governance landscape is increasingly significant. Multinational corporations, through their global reach and economic power, can drive sustainability practices across supply chains. Similarly, civil society organizations and consumer movements can leverage market forces to demand more sustainable products and production methods.

As the world faces the dual challenges of recovering from the economic impacts of the COVID-19 pandemic and addressing the looming climate crisis, the imperative to reconcile trade and environmental objectives has never been more urgent. The path forward requires a paradigm shift in how we conceive of economic progress, moving beyond narrow metrics of GDP growth to more holistic measures of societal and ecological well-being.

Ultimately, navigating the paradox of global trade and environmental governance demands a nuanced, systems-level approach that recognizes the interconnectedness of economic, social, and environmental systems. It calls for innovative policy frameworks, technological solutions, and a reimagining of global cooperation to ensure that trade serves as a catalyst for sustainable development rather than a driver of environmental degradation.

Questions 21-26

Choose the correct letter, A, B, C, or D.

21. The passage suggests that the relationship between global trade and environmental governance is:
    A) Straightforward and easily managed
    B) Complex and challenging
    C) Irrelevant to policymakers
    D) Beneficial in all aspects

22. The Environmental Kuznets Curve hypothesis proposes that:
    A) Environmental degradation always increases with economic growth
    B) There is no relationship between income and environmental quality
    C) Environmental degradation decreases after a certain level of per capita income
    D) Economic growth always leads to better environmental outcomes

23. According to the passage, the “scale effect” of increased production and consumption:
    A) Always results in environmental improvements
    B) Has no impact on resource use and pollution
    C) Can outweigh efficiency gains in terms of environmental impact
    D) Only affects developed countries

24. The governance of the trade-environment nexus is complicated by:
    A) Too many environmental laws
    B) The fragmented nature of international environmental law
    C) The lack of economic interests
    D) Universal participation in all agreements

25. The concept of “sustainable trade” aims to:
    A) Completely stop all international trade
    B) Prioritize trade over environmental concerns
    C) Align trade policies with sustainable development goals
    D) Increase environmental degradation

26. The passage suggests that addressing the challenges of global trade and environmental governance requires:
    A) Focusing solely on economic growth
    B) Ignoring the role of non-state actors
    C) A paradigm shift in how economic progress is conceived
    D) Maintaining the current system without changes

Questions 27-30

Complete the summary below.

Choose NO MORE THAN THREE WORDS from the passage for each answer.

The relationship between global trade and environmental governance embodies a tension between economic growth and (27) . While the neoliberal paradigm suggests that trade-driven growth can provide resources for environmental protection, critics argue that this model doesn’t account for (28) associated with growth. The governance of this issue is further complicated by the (29) of international environmental law compared to trade agreements. The concept of “sustainable trade” has emerged as a potential solution, emphasizing principles such as life-cycle analysis and (30) . Addressing these challenges requires a fundamental recalibration of global economic governance and a more holistic approach to measuring societal and ecological well-being.

Answer Key

Passage 1

1. FALSE
2. TRUE
3. TRUE
4. NOT GIVEN
5. TRUE
6. unsustainable practices
7. environmentally friendly
8. environmental protection
9. Certification
10. responsible trade practices

Passage 2

11. B
12. C
13. D
14. C
15. C
16. resource allocation
17. race to the bottom
18. overexploitation
19. trade-related transportation
20. green trade

Passage 3

21. B
22. C
23. C
24. B
25. C
26. C
27. environmental conservation
28. externalities
29. fragmented nature
30. circular economy principles

By practicing with these IELTS Reading passages and questions, you’ll improve your understanding of complex topics like the impact of global trade on environmental sustainability. Remember to time yourself and review your answers carefully. For more IELTS practice materials and tips, check out our articles on the influence of global economic policies on climate change and how global warming is changing agricultural practices.