RSM100 Final Exam- Lecture slides | Questions
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Terms in this set (71)
What is an "international" or a "global 1. Exports many products or services to one or
company? more countries.
2. Also import products
3. Think internationally, even if they haven't
undertaken significant international activities
4. Pursues customers in major regions (Americas,
Europe, Asia)
5. Produce locally what they sell locally
6. Globally dispersed headquarter, management
team has diverse nationalities.
Why did Target fail in Canada? 1. Lacked Canadian representation in management
level
2. No adequate actions made to attract Canadian
consumers.
3. Underestimated competition
4. Constant supply chain issues
Why do nations trade? 1. To obtain goods they need & want and cannot
produce themselves
2. To obtain 'hard' currencies by running a trade
surplus
3. Some countries have natural, "absolute
advantage" over some countries.
,What type of advantage is Comparative advantage
international trade based on today?
Bringing coals to Newcastle - England had comparative advantage in coal via
strip mining
- Workers left coal mines for factories
- England exported goods to trade for other
goods including coal that costed more to extract
- Still better off due to relative terms of trade,
allowed them to focus inputs on other productions
International division of labor - Europe had absolute advantage in manufacturing
production during industrial revolution
- Less developed have comparative advantage in
labor intensive goods, due to low cost of labor
Why do companies trade? - Using up excess resources/ capacity
- Reduce cost
- Satisfy particular foreign market demand
Risks of International Trade - Exchange rate volatility
- Political unrest
- Accidents during shipping
When should companies trade? When they anticipate advantages from trading
Why does achieving free trade - Lower prices & greater choice available for
matter? consumers
- More jobs, faster economic growth
- Prevents economic distortions of trade barriers
- Key component of globalization
Sovereign state Nations that issue their own currencies
, 3 ways international business has 1. Disrupted supply chain (shortage of containers,
been affected by COVID-19 workers), shipping costs a lot more
2. Consumers buy less luxury goods
3. Less people take first class as business meetings
are online, airline struggle to bring back staff
How has globalization changed in - Many countries are lifted out of poverty
recent years? - Goods are cheaper in the West
How has COVID-19 impacted - Generally less demand from consumers
clothing industry? - A sudden disruption in supply chain
Why is Zara more successful during - Had a lot of suppliers that are geographically
COVID? close, shorter and cheaper shipping.
- Zara ordered materials months before, thus
caused less delays, and was on time with fashion
- Don't stock up and thus always have an urgency
to restock.
What is Brexit? The departure of the United Kingdom from the
European Union.
Why did the UK initiate BREXIT? - Remain political sovereignty
- UK has been paying more than what they are
getting
- Refugees are taking too many job opportunity
within UK
- No realistic economic advantages
Brexit drawback on UK - A loss of border control
- Travel industry significantly impacted as travel is
harder
- Loss of efficiency from loss of migrant workers
- Loss of bargaining power
with 100% Correct Answers | Verified | Latest
Update 2026
Save
Terms in this set (71)
What is an "international" or a "global 1. Exports many products or services to one or
company? more countries.
2. Also import products
3. Think internationally, even if they haven't
undertaken significant international activities
4. Pursues customers in major regions (Americas,
Europe, Asia)
5. Produce locally what they sell locally
6. Globally dispersed headquarter, management
team has diverse nationalities.
Why did Target fail in Canada? 1. Lacked Canadian representation in management
level
2. No adequate actions made to attract Canadian
consumers.
3. Underestimated competition
4. Constant supply chain issues
Why do nations trade? 1. To obtain goods they need & want and cannot
produce themselves
2. To obtain 'hard' currencies by running a trade
surplus
3. Some countries have natural, "absolute
advantage" over some countries.
,What type of advantage is Comparative advantage
international trade based on today?
Bringing coals to Newcastle - England had comparative advantage in coal via
strip mining
- Workers left coal mines for factories
- England exported goods to trade for other
goods including coal that costed more to extract
- Still better off due to relative terms of trade,
allowed them to focus inputs on other productions
International division of labor - Europe had absolute advantage in manufacturing
production during industrial revolution
- Less developed have comparative advantage in
labor intensive goods, due to low cost of labor
Why do companies trade? - Using up excess resources/ capacity
- Reduce cost
- Satisfy particular foreign market demand
Risks of International Trade - Exchange rate volatility
- Political unrest
- Accidents during shipping
When should companies trade? When they anticipate advantages from trading
Why does achieving free trade - Lower prices & greater choice available for
matter? consumers
- More jobs, faster economic growth
- Prevents economic distortions of trade barriers
- Key component of globalization
Sovereign state Nations that issue their own currencies
, 3 ways international business has 1. Disrupted supply chain (shortage of containers,
been affected by COVID-19 workers), shipping costs a lot more
2. Consumers buy less luxury goods
3. Less people take first class as business meetings
are online, airline struggle to bring back staff
How has globalization changed in - Many countries are lifted out of poverty
recent years? - Goods are cheaper in the West
How has COVID-19 impacted - Generally less demand from consumers
clothing industry? - A sudden disruption in supply chain
Why is Zara more successful during - Had a lot of suppliers that are geographically
COVID? close, shorter and cheaper shipping.
- Zara ordered materials months before, thus
caused less delays, and was on time with fashion
- Don't stock up and thus always have an urgency
to restock.
What is Brexit? The departure of the United Kingdom from the
European Union.
Why did the UK initiate BREXIT? - Remain political sovereignty
- UK has been paying more than what they are
getting
- Refugees are taking too many job opportunity
within UK
- No realistic economic advantages
Brexit drawback on UK - A loss of border control
- Travel industry significantly impacted as travel is
harder
- Loss of efficiency from loss of migrant workers
- Loss of bargaining power
