U.S.tire production involves large social costs from air pollution.
How will stronger U.S.environmental regulations requiring firms
To reduce their air pollutants affect U.S.tire imports?
A)Stronger U.S.environmental regulations will cause increases in U.S.tire imports.
B)Stronger U.S.environmental regulations will cause decreases in U.S.tire imports.
C)Stronger U.S.environmental regulations will neither cause increases nor decreases in U.S.tire imports
D)Stronger U.S.environmental regulations will cause decreases in U.S.tire imports but not reduce tire producers' emissions of
Air pollutants.

Question

Quizplus · Accepted Answer

Stronger U.S. environmental regulations would increase the costs of production for U.S. tire producers and reduce their competitiveness in the global market. This will influence buyers to turn to cheaper imports, decreasing the demand for domestically produced tires and increasing imports.

USTire Production Involves Large Social Costs from Air Pollution