Intel operates manufacturing facilities to produce semiconductor wafers in China, Israel and Ireland. This is an example of ______________________.

1. offshoring
2. franchising
3. licensing
4. outsourcing

Which of the following is NOT true about international business?

1. There are risks involved in doing business in another country
2. Counterfeiting in international markets harms the profit level of multinational companies
3. Firms should only seek countries where there is minimum political risk
4. Cultural difference can be a major source of management risk