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THE BLUET

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2362-30
Over the past several decades, there have been some agreements to reduce the debt of poor nations, but other economic challenges (like trade barriers) remain. Nontariff trade measures, such as quotas, subsidies, and restrictions on exports, are increasingly prevalent and may be enacted for policy reasons having nothing to do with trade. However, they have a discriminatory effect on exports from countries that lack the resources to comply with requirements of nontariff measures imposed by rich nations. For example, the huge subsidies that rich nations give to their farmers make it very difficult for farmers in the rest of the world to compete with them. Another example would be domestic health or safety regulations, which, though not specifically targeting imports, could impose significant costs on foreign manufacturers seeking to conform to the importer's market. Industries in developing markets may have more difficulty absorbing these additional costs.

2362-31
In the course of his research on business strategy and the environment, Michael Porter noticed a peculiar pattern: Businesses seemed to be profiting from regulation. He also discovered that the stricter regulations were prompting more innovation than the weaker ones. The Dutch flower industry provides an illustration. For many years, the companies producing Holland's world-renowned tulips and other cut flowers were also contaminating the country's water and soil with fertilizers and pesticides. In 1991, the Dutch government adopted a policy designed to cut pesticide use in half by 2000 ― a goal they ultimately achieved. Facing increasingly strict regulation, greenhouse growers realized they had to develop new methods if they were going to maintain product quality with fewer pesticides. In response, they shifted to a cultivation method that circulates water in closed-loop systems and grows flowers in a rock wool substrate. The new system not only reduced the pollution released into the environment; it also increased profits by giving companies greater control over growing conditions.

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It's hard to pay more for the speedy but highly skilled person, simply because there's less effort being observed. Two researchers once did a study in which they asked people how much they would pay for data recovery. They found that people would pay a little more for a greater quantity of rescued data, but what they were most sensitive to was the number of hours the technician worked. When the data recovery took only a few minutes, willingness to pay was low, but when it took more than a week to recover the same amount of data, people were willing to pay much more. Think about it: They were willing to pay more for the slower service with the same outcome. Fundamentally, when we value effort over outcome, we're paying for incompetence. Although it is actually irrational, we feel more rational, and more comfortable, paying for incompetence.

2362-33
In adolescence many of us had the experience of falling under the sway of a great book or writer. We became entranced by the novel ideas in the book, and because we were so open to influence, these early encounters with exciting ideas sank deeply into our minds and became part of our own thought processes, affecting us decades after we absorbed them. Such influences enriched our mental landscape, and in fact our intelligence depends on the ability to absorb the lessons and ideas of those who are older and wiser. Just as the body tightens with age, however, so does the mind. And just as our sense of weakness and vulnerability motivated the desire to learn, so does our creeping sense of superiority slowly close us off to new ideas and influences. Some may advocate that we all become more skeptical in the modern world, but in fact a far greater danger comes from the increasing closing of the mind that burdens us as individuals as we get older, and seems to be burdening our culture in general.

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Many people look for safety and security in popular thinking. They figure that if a lot of people are doing something, then it must be right. It must be a good idea. If most people accept it, then it probably represents fairness, equality, compassion, and sensitivity, right? Not necessarily. Popular thinking said the earth was the center of the universe, yet Copernicus studied the stars and planets and proved mathematically that the earth and the other planets in our solar system revolved around the sun. Popular thinking said surgery didn't require clean instruments, yet Joseph Lister studied the high death rates in hospitals and introduced antiseptic practices that immediately saved lives. Popular thinking said that women shouldn't have the right to vote, yet people like Emmeline Pankhurst and Susan B. Anthony fought for and won that right. We must always remember there is a huge difference between acceptance and intelligence. People may say that there's safety in numbers, but that's not always true.

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