RSM100: Chapter 4-International Business:
Competing in World Markets Exam | Questions
with 100% Correct Answers | Verified | Latest
Update 2026
Save
Terms in this set (41)
What is an "International Company"? A company that exports a significant amount of its
products or services to one or more nations
- can also import from abroad
They think internationally, even if they do not yet
undertake significant international activities
What is a "Global Company"? Give an A company that is pursuing customers in all the
example. major regions, particularly: Americas, Europe, and
Asia
- not really global
- produce and sell locally
Example: Disneyland HK, Paris, USA, etc.
What is the difference between an It is better to think of international companies
international and global company? Is (internationalization) and global companies
the difference discrete or (globalization) on a SPECTRUM rather than one of
ambiguous? the other
- a company can be more or less of the either
, What factors make a company more If the company produces in one region
global than international? (Europe/Asia) and sells in the same region
(Europe/Asia)
If the company has corporate headquarters around
the world
If the top management team consists of diverse
individuals (different nations)
Example of how Target had an
"identity issue" regarding being
international or global when
establishing in Canada
What is natural or absolute Absolute Advantage (AA):
advantage? What did this cause or - when the country has a monopoly on making that
give purpose to? Give an example. product
- when it can produce the product at a lower cost
than any other country
This allows for countries to trade the goods they
have absolute advantages in - helps the countries
to get what they cant produce
Example:
- Peru has AA in growing citrus fruits over Canada
as Canada doesn't have the climate/temperature to
do so
- While, Canada has AA over Peru in producing
maple syrup due to natural environment/trees
Competing in World Markets Exam | Questions
with 100% Correct Answers | Verified | Latest
Update 2026
Save
Terms in this set (41)
What is an "International Company"? A company that exports a significant amount of its
products or services to one or more nations
- can also import from abroad
They think internationally, even if they do not yet
undertake significant international activities
What is a "Global Company"? Give an A company that is pursuing customers in all the
example. major regions, particularly: Americas, Europe, and
Asia
- not really global
- produce and sell locally
Example: Disneyland HK, Paris, USA, etc.
What is the difference between an It is better to think of international companies
international and global company? Is (internationalization) and global companies
the difference discrete or (globalization) on a SPECTRUM rather than one of
ambiguous? the other
- a company can be more or less of the either
, What factors make a company more If the company produces in one region
global than international? (Europe/Asia) and sells in the same region
(Europe/Asia)
If the company has corporate headquarters around
the world
If the top management team consists of diverse
individuals (different nations)
Example of how Target had an
"identity issue" regarding being
international or global when
establishing in Canada
What is natural or absolute Absolute Advantage (AA):
advantage? What did this cause or - when the country has a monopoly on making that
give purpose to? Give an example. product
- when it can produce the product at a lower cost
than any other country
This allows for countries to trade the goods they
have absolute advantages in - helps the countries
to get what they cant produce
Example:
- Peru has AA in growing citrus fruits over Canada
as Canada doesn't have the climate/temperature to
do so
- While, Canada has AA over Peru in producing
maple syrup due to natural environment/trees
