RSM100 Final Exam- Lecture slides
Questions and Answers with Verified
Solutions | Latest Updated 2026
What is an "international" or a 1. Exports many products or services to
"global 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
matter? for
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
been affected by COVID-19 containers,
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
Questions and Answers with Verified
Solutions | Latest Updated 2026
What is an "international" or a 1. Exports many products or services to
"global 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
matter? for
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
been affected by COVID-19 containers,
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
