Explanation: International trade refers to the exchange of capital, goods, and services among states or territories. It has a great impact on gross domestic product (GDP) of the territories involved.
However, since there is mutual dependence between the territories, the political and economic status of the states will influence there agreements and resolutions.
Hence, international trade results in higher exposure to international political risk and higher exposure to international economic conditions.
The answer is letter A. The Clear Air Act would be a reason for the Environmental Protection Agency or EPA to regulate car emissions. EPA sets the emission standards under the said rule or regulation and this also covers the green house gas emissions.
