Chapter 3: Business in a Global Environment Answer the following questions in paragraph, full-sentence format. Explain why nations and companies participate in international trade. What is the difference between absolute advantage and comparative advantage? How is trade between nations is measured? Define importing and exporting. Explain how companies enter the international market through licensing agreements or franchises. Describe how companies reduce costs through contract manufacturing and outsourcing. Define international strategic alliances and joint ventures, and what the purpose is. What are the arguments for and against multinational corporations.