A tax that can be used as a trade barrier is the

a. personal income tax.

b. excise tax.

c. value-added tax.

d. import duty tax.

Protectionism occurs when

a. governments encourage international trade.

b. one company is granted a tax holiday.

c. a country is granted most favored nation status.

d. governments establish trade barriers.

A ____________________ is a political system in which all citizens take part in making the rules that govern them.

The simplest, lowest-risk method of getting involved in international business is to form a joint venture with a company in another country.

True or False

A common disadvantage of partnerships is

a. disagreements among owners.

b. ease of creation.

c. double taxation of earnings.

d. limited liability.