First, when trade barriers are imposed on capital or producer goods, some industries gain because they are then able to produce them locally. These goods are then sold to local industries at higher prices. To counteract this cost, some industries lay off some of their workers.
Secondly, when production of some goods are localized there is a cost for geographical mobility of workers to those industrial areas. Some workers are rendered immobile geographically, leading to lose of jobs. Thirdly, relocation and retraining of workers is an expensive cost by some industries. Some people will end up losing their jobs because the cost of retraining their employees is very high.
Low income countries like Brazil, Egypt or Vietnam have lower environmental standards than high income countries like the German, Japan or the United States. This is because of several reasons discussed below.
First, the low income countries have a problem with sourcing of jobs. Most of the time they intentionally lower their standards especially the environmental standards just to attract multinational countries. This situation forces the low income countries to have lower environmental standards than their counterparts who are high income countries.
Second, Pollution is a problem that cannot only be controlled and maintained within a country. It is usually passed off to neighbouring countries in a region. Low income countries focus more on economic issues and pay little attention to pollution which degrades their environmental standards. High income countries focus on all areas for the purpose of growth and development.
Furthermore, low income countries or the developing nations experience a problem know as policy paralysis. They are often struggling to keep up with the pace of other developed countries. The high income countries take advantage of the fact that they understand the important role that they play in influencing the policies.