RSM 100 Final Exam Questions and Answers Fully Solved Latest Version 2025-2026
How does a low Canadian dollar affect international trade and the economy? - Answers -
Cheaper for other countries to buy our goods (more exports)
- Makes imports more expensive so less money is going out of the country
- decrease trade deficit which results in a high GDP
- Makes it more expensive to travel
What are 3 ways international trade has been affected by COVID-19? - Answers - Disrupted
supply chain
- Squeeze on consumers (spending less)
- Limitations on workers
Will covid kill globalization? - Answers - has been slowing ever since 2008 financial crisis
- decrease in global GDP
- Long and complex supply chains were hit hard (e.g., clothing)
How has covid affected the clothing industry? - Answers - disrupted long supply chains
- less demand for certain types of clothes such as formal wear or party clothes
- more difficult to adapt to style changes
Why has ZARA been more successful during covid? - Answers - has control over its entire
process (vertical integration) from manufacturer to distributor
- shorter supply chain (countries they're importing from are closer)
- can react to fast changes in the industry bc importing from closer countries
- fast fashion so it's easier to respond quickly
Brexit: Pros and Cons for Britain - Answers Pros:
- Promote production
- Cheaper goods
- More jobs inside the UK
- More sovereignty and decision making
Cons:
, - Increased barriers for trade between UK and EU
- Companies moved headquarters out of the UK and into EU countries
- More difficult for UK workers to get jobs in the EU
- Lose influence in the global political sphere
Brexit: Pros and Cons for Europe - Answers Pros:
- Increase trade amongst remaining
- Less reliance on UK
- Companies moving headquarters to EU boosts member countries' economies
Cons:
- More difficult for EU workers to get jobs in the UK
- Might influence other countries to do the same
- More tariffs, transportation difficulty
What are ethical issues international businesses face? - Answers - Different labor standards
(age, working conditions, wages, hours per day)
- corruption (bribes)
- Environmental standards
Should Canada reduce trade from China? - Answers Yes:
- To help support Canadian run businesses
- Would make Canada more resilient as they would be more self-reliant
- Create more jobs for Canadians
- Avoid long supply chains
No:
- Canada alone cannot produce the same amount as China (less efficient)
- China may have comparative or absolute advantage in some goods
- may be more costly
Case: Covid and Movie Theaters
How does a low Canadian dollar affect international trade and the economy? - Answers -
Cheaper for other countries to buy our goods (more exports)
- Makes imports more expensive so less money is going out of the country
- decrease trade deficit which results in a high GDP
- Makes it more expensive to travel
What are 3 ways international trade has been affected by COVID-19? - Answers - Disrupted
supply chain
- Squeeze on consumers (spending less)
- Limitations on workers
Will covid kill globalization? - Answers - has been slowing ever since 2008 financial crisis
- decrease in global GDP
- Long and complex supply chains were hit hard (e.g., clothing)
How has covid affected the clothing industry? - Answers - disrupted long supply chains
- less demand for certain types of clothes such as formal wear or party clothes
- more difficult to adapt to style changes
Why has ZARA been more successful during covid? - Answers - has control over its entire
process (vertical integration) from manufacturer to distributor
- shorter supply chain (countries they're importing from are closer)
- can react to fast changes in the industry bc importing from closer countries
- fast fashion so it's easier to respond quickly
Brexit: Pros and Cons for Britain - Answers Pros:
- Promote production
- Cheaper goods
- More jobs inside the UK
- More sovereignty and decision making
Cons:
, - Increased barriers for trade between UK and EU
- Companies moved headquarters out of the UK and into EU countries
- More difficult for UK workers to get jobs in the EU
- Lose influence in the global political sphere
Brexit: Pros and Cons for Europe - Answers Pros:
- Increase trade amongst remaining
- Less reliance on UK
- Companies moving headquarters to EU boosts member countries' economies
Cons:
- More difficult for EU workers to get jobs in the UK
- Might influence other countries to do the same
- More tariffs, transportation difficulty
What are ethical issues international businesses face? - Answers - Different labor standards
(age, working conditions, wages, hours per day)
- corruption (bribes)
- Environmental standards
Should Canada reduce trade from China? - Answers Yes:
- To help support Canadian run businesses
- Would make Canada more resilient as they would be more self-reliant
- Create more jobs for Canadians
- Avoid long supply chains
No:
- Canada alone cannot produce the same amount as China (less efficient)
- China may have comparative or absolute advantage in some goods
- may be more costly
Case: Covid and Movie Theaters
