(United States) and the South (China) in the presence of a global pollution externality. Each country's share of global … the increased pollution in China has global effects, the US may not benefit from the environmental restrictions and a …Bilateral trade and capital flows have increased substantially between the United States and China yielding economic …

) and the South (China) in the presence of a global pollution externality. Each country's share of global pollution depends … pressure on the US to raise environmental regulations on industry. Capital will move to China. Because the increased pollution …Bilateral trade and capital flows have increased substantially between the United States and China yielding economic …