Question

What would be a positive externality for a developing nation, if a U.S. corporation and manufacturing company in a developing nation establish a fair trade agreement?

A.) Education levels may rise.
B.) Competing U.S. corporations may fix workers' wages at a lower rate.
C.) Manufacturers may lower fees to compete with other countries' prices.
D.) Military enrollment may rise.

Answer 1

"Education levels may rise" would be a positive externality for a developing nation, if a U.S. corporation and manufacturing company in a developing nation establish a fair trade agreement. The correct option among all the options that are given in the question is the first option or option "A".