Why does the United States both import and export ethanol?
a. U.S. regulations require U.S. fuel companies to use both ethanol made from corn and ethanol made from other sources (such as sugar), which has led to a surplus of corn ethanol that is exported to Brazil in return for sugar ethanol.
b. U.S. regulations require U.S. fuel companies to use only ethanol made from corn, which has led to a surplus of corn ethanol that is exported to Brazil.
c. Brazilian regulations require its fuel companies to use both ethanol made from corn and ethanol made from sugar, which has led to a surplus of sugar ethanol that is exported, and a need for corn ethanol, which is imported from the United States.
d. Brazilian regulations require its fuel companies to use only ethanol made from corn, which has led to a surplus of sugar ethanol that is exported, and a need for corn ethanol, which is imported from the United States.
Ans: a. U.S. regulations require U.S. fuel companies to use both ethanol made from corn and ethanol made from other sources (such as sugar), which has led to a surplus of corn ethanol that is exported to Brazil in return for sugar ethanol.
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