1. A vertically integrated industry is one in which:

A - country specific advantage and firm specific advantage are both high

B - country specific advantage is high and firm-specific advantage is low

C - country specific advantage is low and firm specific advantage is low

2. Which of the following is a reason an industry becomes horizontally integrated?

A - firms receive benefits from sharing activities to achieve economies of scale or scope across country markets

B - rivalry conditions

C - the benefits from vertical relationships in the supply chain

D - WTO rules

3. Countries develop trade policies to protect their agricultural products for economic, not political, reasons.

- True or False

4. A multidomestic firm locates a separate business within each country in which it operates.

- True or False