In a multilateral free trade agreement, three or more states agree to reduce and gradually eliminate tariffs and other trade barriers.

The terms international law and comparative law do not mean the same thing. 
TRUE

International law governs the conduct of states and international organizations and their relationships with one another and natural and juridical persons, while comparative law is the study of legal systems of different states.

When doing business internationally, a foreign sales representative does the same thing as a distributor. 
FALSE

Unlike the foreign sales representative, the distributor takes title to the goods and assumes the risk of being unable to resell them at a profit.

A franchise agreement is the same thing as a joint venture. 
FALSE

A franchise agreement is a contract whereby a company (known as the franchisor) grants permission (a license) to a foreign entity (known as a franchisee) to utilize the franchisor's name, trademark, or copyright in the operation of a business and associated sale of goods in a foreign state. In a joint venture with a company in the host state, the parties share profits and management responsibilities for a specific project.

Because ethical issues vary from country to country, international business persons should not take ethical considerations into account in the decision-making process. 
FALSE

International businesspersons must take ethical considerations into account in the decision-making process.

The General Agreement on Tariffs and Trade became effective in 2000. 
FALSE

The General Agreement on Tariffs and Trade (GATT) became effective on January 1, 1948.

A subsidy is a government financial contribution that confers a benefit on a specific industry or enterprise. 
TRUE

A subsidy is a government payment to a specific industry or enterprise. Subsidies can be direct transfers of funds, such as loans and grants; loan guarantees; tax credits; government procurement; and price supports.

In a multilateral free trade agreement, three or more states agree to reduce and gradually eliminate tariffs and other trade barriers. 
TRUE

In a multilateral free trade agreement, three or more states agree to reduce and gradually eliminate tariffs and other trade barriers. The North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico is a multilateral free trade agreement.

The United States is not a party to the Central American Free Trade Agreement. 
FALSE

The United States is a party to the Central American Free Trade Agreement (CAFTA) with El Salvador, Guatemala, Nicaragua, Honduras, Costa Rica, and the Dominican Republic.

The European Union is an example of a customs union. 
TRUE

The United States has no bilateral trade agreements. 
FALSE

States may also enter into bilateral free trade agreements, which relate to trade between two states. The United States has several bilateral free trade agreements, including those with Australia, Bahrain, Chile, Israel, Jordan, Morocco, Peru, and Singapore.