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A multinational corporation taps oil reserves in a developing country's rainforest. Which of the following is a potential positive externality resulting from this?

User Ye Shiqing
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2 Answers

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Final answer:

A potential positive externality resulting from a multinational corporation tapping oil reserves in a developing country's rainforest is the creation of infrastructure and technological advancements, such as roads, bridges, and improved connectivity. These developments can benefit the local communities by facilitating transportation, enhancing access to healthcare and education, and fostering economic growth.

Step-by-step explanation:

A potential positive externality that could result from a multinational corporation tapping oil reserves in a developing country's rainforest is the creation of infrastructure and technological advancements.

When a multinational corporation invests in extracting oil from a rainforest, it may be required to build roads, bridges, and other infrastructure in the area.

These infrastructural developments can benefit the local communities by making transportation and communication easier, improving access to healthcare and education, and boosting economic growth.

For example, the construction of roads can enhance connectivity, allowing farmers in remote areas to transport their goods to markets more efficiently and access resources they previously couldn't.

Additionally, the presence of multinational corporations can lead to knowledge and technology transfer, as they bring in expertise and advanced technologies.

Keywords: multinational corporation, oil reserves, rainforest, positive externality, infrastructure, technological advancements, roads, bridges, communication, healthcare, education, economic growth

User Punchagan
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Answer:

improved roadways for moving equipment

Step-by-step explanation:

took the test

User Mo Zaatar
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