How do externalities occur in a free market? Why might some types of transport cause externalities?
Increased travel activity, various literature, and reports in the media, raise awareness about how global inequality currently creates two categories of nations. One consists of rich, sophisticated, civilised, industrialised countries with advanced political and healthcare systems, corporate culture, consumerism and financial institutions attempting to dominate people’s lives on a global scale. Poor “Third World” nations form the second category, deeply indebted to the world’s leading financial institutions and with populations exploited and prone to dangers of environmental problems and disasters along with starvation and diseases eradicated in industrialised nations. The field of economics provides the basis for an investigation into causes for this inequality, looking first at basic workings of markets before obtaining the description of the neoclassical theory of the free-market system. This shall lead to answering the question of how externalities occur and a change of focus to re
