Answer the following statements true, false or uncertain. Give a (1) or (2) sentence explanation of your answer.

5. A comprador was used to reduce the transaction costs associated with western firms doing business with firms in Asia that had different business cultures.

6. There are no prohibited subsidies according to WTO agreements.

7. If Canadian ranchers are exporting cattle to the US at the same price as they are selling cattle in Canada and ranchers in both countries are selling below cost (losing money), then Canadian ranchers cannot be accused of dumping.

8. Harmonizing regulations is likely to be easier when a developed and developing country are negotiating than when two developed countries are negotiating.

9. The WTO does not need a mechanism for settling disputes because all countries that belong to the WTO must agree before any change in a trade agreement can be made.