6) U.S. car makers were forced to build their own network of dealerships to enter the Japanese market.

A) This is an example of backward vertical integration.

B) This is an example of forward vertical integration.

C) This is an example of horizontal integration.

7) Regarding the mechanics of international portfolio diversification, which statement is true?

A) Security returns are much less correlated across countries than within a county.

B) Security returns are more correlated across countries than within a county.

C) Security returns are about as equally correlated across countries as they are within a county.