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

Answer 1

Answer:

the most suitable answer is *Manufacturers may lower fees to compete with other countries' prices

Explanation:

As the question asks for a positive externality, which can be defined as an indirect affect on parties that are not directly involved with the trade agreement.

In this case, the consumers will be the party that get the benefit from the lower prices.

Answer 2

Answer:

Education levels may rise

Explanation:

got it correct on BUzz econ