Question

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

Answer 1

The developing country gets a huge amount of annual tax from the company and it is up to the government to decide what to use that tax money with. In Brunei a small country with a lot of oil, the government used the tax money to help the people. However some governments such as Nigeria's get corrupted and take all the money for themselves