ect of the adopted policies on employment. An increase n the volume of trade or the adoption of policies that would lead to the increase in unemployment is totally unnecessary. On the other hand governments fight to keep unemployment low due to the disastrous consequences of high rates of unemployment on economic and political stability. So the government would prioritize high employment over free trade. How ever this again depends on many variables all together and is very difficult to measure. Free trade nourishes some sectors, at the same time it brings hardships to other sectors. For example free trade boosts up the export and import sectors depending on the countries economic activity and its terms of trade. Other variables come in handy, the more industrialized a country is the better the effect of trade on the domestic industries and the export sector. The better the terms of trade of a country the better of it is due to the trade movement and the better it is for the domestic currency and thus the domestic stock market. The more competitive and the larger the industrial sector, the better the country is with regards to its terms of trade. The terms of trade affect the inflow or outflow of money from the economy which n turn affects all sectors within the economy. If sectors expand then it s of benefit employment wise, if they contract then it is of loss. The common case is that some expand while others contract here it is a matter of policy. If the government adopts the right adjustment policies it can benefit from the expanding sectors while minimizing loss of employment within contracting ones. Environmental protection prioritized over commercial interests Along with its concern with the efficient use of the worlds resources, and sustainable development the WTO is also concerned with the environmental protection. Also, looking through clauses of the WTO rules it is clear that the protection of the human, animal or plant l...
