7. Even though the United States manufactures textiles, China is able to produce them more efficiently. Thus, China has a _____ in manufacturing textiles.

a) tariff

b) quota

c) trade restriction

d) comparative advantage

8. Live Machines, Inc., a U.S. based company, is trying to establish a supplier relationship with a parts manufacturer in a small Asian country. Alejandro, the purchasing manager, is attempting to get to know the general manager and staff of the company to help finalize the agreement. Alejandro is attempting to overcome what type of barrier?

a) Physical barrier

b) Tariff restriction

c) Exchange controls

d) Cultural barrier