RSM490H1F — International Business Strategy
University of Toronto | Rotman Commerce | 2026/2027
Exam Preparation Q&A — 20 Questions with Verified Answers & Rationales
Topics: Globalization • Foreign Direct Investment (FDI) • Modes of Entry • MNC Strategy
Aligned to: CKR Textbook (6th ed.) | Sessions 1–11 | Midterm & Final Exam Ready | Graded A+
● GLOBALIZATION
Q1. Which of the following best describes 'deglobalization' as discussed in the context
of RSM490H1?
[Multiple Choice]
A) The complete reversal of all international trade agreements since 1990
B) A relative decline in global economic integration driven by protectionist policies,
tariffs, and geopolitical tensions
C) The withdrawal of all MNCs from emerging markets
D) A WTO-led initiative to reduce global inequality
✓ VERIFIED ANSWER
B) A relative decline in global economic integration driven by protectionist
policies, tariffs, and geopolitical tensions
RATIONALE Deglobalization refers to a slowdown or partial reversal of global
economic integration. As covered in Session 1, it is driven by rising
protectionism (e.g., US tariffs), geopolitical tensions, and inward FDI
restrictions — not a complete reversal of all trade. Options A, C, and D are too
extreme or inaccurate.
● GLOBALIZATION
Q2. Explain why internationalization may be considered a 'strategic imperative' rather
than a choice for modern corporations. Provide one real-world example from the
course.
[Short Answer]
✓ VERIFIED ANSWER
Internationalization is a strategic imperative because firms that remain
domestic expose themselves to competitive threats from global rivals while
, limiting their own access to customers, capital, skills, and technologies beyond
their home market. Without a global strategy, firms restrict their growth
potential and become vulnerable to more internationally diversified
competitors.
RATIONALE This reflects the core argument in RSM490's course description.
Real-world examples from the course include Samsung (South Korea), TSMC
(Taiwan), and Alibaba (China) — all of which built competitive advantages
through international expansion. Domestic-only firms in the same industries
faced strategic disadvantage.
● GLOBALIZATION
Q3. According to trade theory covered in RSM490, which of the following is the MOST
accurate statement about the benefits of globalization for host countries?
[Multiple Choice]
A) Host countries always benefit equally from MNC entry
B) Global integration universally fosters local firm development
C) MNCs may not pay sufficient attention to the development needs of host
countries, and open markets can sometimes thwart local firm growth
D) Protectionist policies are always harmful to host country development
✓ VERIFIED ANSWER
C) MNCs may not pay sufficient attention to the development needs of host
countries, and open markets can sometimes thwart local firm growth
RATIONALE Session 1 explicitly addresses the critique that MNCs can be
extractive and may harm host country development by crowding out local
firms. This nuanced view distinguishes RSM490 from a simplistic 'globalization
is always good' framing. Option D is incorrect because protectionism is
sometimes justified for infant industry protection.
● GLOBALIZATION & CULTURAL ENVIRONMENT
Q4. Hofstede's cultural dimensions are used in international business strategy
primarily to:
[Multiple Choice]
University of Toronto | Rotman Commerce | 2026/2027
Exam Preparation Q&A — 20 Questions with Verified Answers & Rationales
Topics: Globalization • Foreign Direct Investment (FDI) • Modes of Entry • MNC Strategy
Aligned to: CKR Textbook (6th ed.) | Sessions 1–11 | Midterm & Final Exam Ready | Graded A+
● GLOBALIZATION
Q1. Which of the following best describes 'deglobalization' as discussed in the context
of RSM490H1?
[Multiple Choice]
A) The complete reversal of all international trade agreements since 1990
B) A relative decline in global economic integration driven by protectionist policies,
tariffs, and geopolitical tensions
C) The withdrawal of all MNCs from emerging markets
D) A WTO-led initiative to reduce global inequality
✓ VERIFIED ANSWER
B) A relative decline in global economic integration driven by protectionist
policies, tariffs, and geopolitical tensions
RATIONALE Deglobalization refers to a slowdown or partial reversal of global
economic integration. As covered in Session 1, it is driven by rising
protectionism (e.g., US tariffs), geopolitical tensions, and inward FDI
restrictions — not a complete reversal of all trade. Options A, C, and D are too
extreme or inaccurate.
● GLOBALIZATION
Q2. Explain why internationalization may be considered a 'strategic imperative' rather
than a choice for modern corporations. Provide one real-world example from the
course.
[Short Answer]
✓ VERIFIED ANSWER
Internationalization is a strategic imperative because firms that remain
domestic expose themselves to competitive threats from global rivals while
, limiting their own access to customers, capital, skills, and technologies beyond
their home market. Without a global strategy, firms restrict their growth
potential and become vulnerable to more internationally diversified
competitors.
RATIONALE This reflects the core argument in RSM490's course description.
Real-world examples from the course include Samsung (South Korea), TSMC
(Taiwan), and Alibaba (China) — all of which built competitive advantages
through international expansion. Domestic-only firms in the same industries
faced strategic disadvantage.
● GLOBALIZATION
Q3. According to trade theory covered in RSM490, which of the following is the MOST
accurate statement about the benefits of globalization for host countries?
[Multiple Choice]
A) Host countries always benefit equally from MNC entry
B) Global integration universally fosters local firm development
C) MNCs may not pay sufficient attention to the development needs of host
countries, and open markets can sometimes thwart local firm growth
D) Protectionist policies are always harmful to host country development
✓ VERIFIED ANSWER
C) MNCs may not pay sufficient attention to the development needs of host
countries, and open markets can sometimes thwart local firm growth
RATIONALE Session 1 explicitly addresses the critique that MNCs can be
extractive and may harm host country development by crowding out local
firms. This nuanced view distinguishes RSM490 from a simplistic 'globalization
is always good' framing. Option D is incorrect because protectionism is
sometimes justified for infant industry protection.
● GLOBALIZATION & CULTURAL ENVIRONMENT
Q4. Hofstede's cultural dimensions are used in international business strategy
primarily to:
[Multiple Choice]
