Question

A free-trade agreement lowers restrictions on trucking across international borders. Which of the following would be a negative externality for the local environment?
Higher costs for domestic goods

Fewer imports of renewable resources

More water consumption

An increase in air pollution

Answer 1

A free trade agreement lowers restrictions on trunking across international borders. The following would be a negative externality for the local environment:

An increase in air pollution.

When restrictions are lowered more trucks would be available to cross the international border. This would most likely create more traffic and pollution. Since producers would aim to export more.

Answer 2

The answer for this question would be the B) Fewer imports of renewable resources.
Fewer imports of renewable resources would be a negative externality for the local environment.