Which Activity Does NOT Generate a Negative Externality

question 39

Multiple Choice

Which activity does NOT generate a negative externality?

• A)Bob's Service Station dumps used oil in the river.
• B)Bob renovates a run-down house in the neighborhood.
• C)Bob occasionally drives while drunk.
• D)Bob's Service Station donates a car to charity.

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Definitions:

NAFTA Trade Agreement

Refers to the North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that aimed at eliminating most tariffs and barriers to trade and investment among the three countries.

Cross-Border Merger

A Cross-Border Merger involves the combination of companies from different countries to create a single global entity, aiming to expand market reach and optimize resources.

North America

A continent located in the northern hemisphere, mainly between the Atlantic and Pacific Oceans, comprising countries like the United States, Canada, and Mexico.

Internationalization Process

The strategic process that a company undergoes to expand its operations and presence into foreign markets.