The export of hazardous industrial plants to developing nations is examined for a number of industries. As hazardous and polluting industries come under increasing regulation in industrial nations, some of the affected processes are exported, without improvements to make them less hazardous, to nonregulating countries where cheap and uninformed labor is abundant. “Runaway shops” then market their products in industrial nations with the competitive advantage of not having had to comply with costly workplace and pollution-control regulations.
The international trade impacts of hazard export include: export of jobs from regulating to nonregulating countries; shift of international balance of payments in favor of nonregulating countries; export of mortal health hazards and environmental destruction to workers and communities in nonregulating nations, in order to produce goods for consumption by the regulating countries; weakened competitive position of reputable manufacturers who incur control costs and compete in domestic and world markets against less scrupulous companies; prolonged widespread use of discredited, extremely hazardous technologies, arising from the continuing “subsidy” of certain industries by workers and communities exposed to uncontrolled, well-recognized, mortal health hazards; and aggravated international relations resulting from developing nations' awareness and concern over becoming dumping grounds for hazard export from industrial nations.
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