Economics - ORIGINAL WORK - Due in 2 HOURS (2AM EST)

ANSWER QUESTIONS COMPLETELY

1A. Auto manufacturers must continue to improve the fuel efficiency of vehicles, and at the same time, reduce emissions.  Your posting mentions market incentives.  What sort of incentives can be used to improve fuel economy? 

1B. We can assume the United States is making progress in becoming more green so to speak.  However, countries like India and China are still developing their economies.  Environmental pollution is a big problem for developing economies.  Should countries like the United States help out?  What could we do to encourage developing countries to modernize along an eco friendly growth path?

1C. Would it be possible to develop a market mechanism to deal with some negative externalities?  Would it be possible to develop a market to trade rights to pollute, for example?

1D. Usually there are expectations mergers will bring synergies when firms combine.  What sort of synergies are possible?  Do mergers really provide benefits as advertised?