Mulsiple Choice Questions ( 1/2 point each) 1. Absolute advantage involves the difference in the cost of producing products in different countries? a. True b. False 2. Which of the following is a comparative advantage? a. Location of oil b. Labor cost c. City sires d. Annual precipitation 3. Outsourcing involves: a. Moving company facilities away from the home office b. Hiring forcign nationals to manage parts of the business c. The farming out of intemal processes to a third party d. Relocating an asset or process to another country 4. Offshoring involves: a. Moving company facilities away from the home office b. Hiring forcign nationals to manage parts of the business c. The farming out of intemal processes to a third party d. Relocating an asset or process to another country 5. Friend-shoring involves: a. Hiring Americans to manage parts of a business that were once managed by foreign nationals b. Moving company facilities from a less politically and business friendly country to a country with better ties with the United States. c. Absorbing business processes internally from a third party (vertically integrating) d. Relocating an asset or process to the United States or a nearer country from a more distant country