This box describes the controversy that arose when TransCanada applied for approval to build the Keystone Pipeline. Environmental concerns were raised about the pipeline, and its approval also became complicated by the 2012 election in the U.S.

1. How has the external environment of business impacted companies like TransCanada Corp.?

2. Consider the following statement: “Since it is safer to transport oil in pipelines than in rail cars, the Keystone XL pipeline should be approved. This will reduce the problem of oil spills as a result of railroad accidents.” Do you agree or disagree with the statement? Explain your reasoning.