WGU D080 OBJECTIVE ASSESSMENT EXAM
FULL QUESTIONS AND ANSWERS 2026
GRADED A+
◉ Comparative advantage. Answer: - uses opportunity cost
- determines specialization
- limited resources lead to opportunity cost
- lower opportunity cost determines comparative advantage
◉ Hectscher-Ohlin Theory (Factor endowment theory). Answer:
Factors of production: land, labor, natural resources, capital, and
technology
◉ Country Similarity theory. Answer: - Firm based theory that
incorporate brand, customer loyalty, technology, and quality into the
understanding of trade flows.
- consumers in countries that are in the same or similar stage of
development would have similar preferences
- companies first product for domestic consumption
◉ Global strategic rivalry theory. Answer: - focuses on the firms
competitive advantage
,- barriers to entry (r&d, IP rights, economies of scale, control of
resources)
◉ Negative impacts of free trade. Answer: - possible manufacturing
job loss in developed countries
- labor standards and working conditions are concerned in
developing nations
- domestic businesses faces challenged
◉ What can governments use to limit trade. Answer: - sanctions
(embargo), anti-dumping, protectionism, infant industry argument,
health and safety, limiting outsourcing, global monopoly, and
national security
◉ Benefits of Multi national corps. (MNCs). Answer: -often overcome
barriers to trade, sidestep regulatory problems, shift production
from one plant to another, tap new technology from around the
around, save on labor cost.
◉ Foreign Direct Investment (DIRECT). Answer: 1. done with the
primary objective to manage the asses
2. direct in involvement and ownership control
3. more permanent in nature as it is difficult to sell off
, ◉ Foreign Direct Investment (PORTFOLIO). Answer: 1. objective is
to acquire an income stream without the operational control
2. no direct involvement in management
3. more liquid in nature as it is easy to sell
◉ Why do host governments promote FDI?. Answer: - economic
growth
-increased employment and reduced poverty
- improved human capital development
- new technologies and business knowledge
- increased tax revenues
◉ FDI attractions. Answer: - tax incentives
- develop and modernize local infrastructure
- reduce bureaucracy and regulatory requirements
- education and job training
◉ FDI restrictions. Answer: - protect local industry and critical
resources
- preserve national and local culture
- maintain policies and economic independence
- manage economic growth
FULL QUESTIONS AND ANSWERS 2026
GRADED A+
◉ Comparative advantage. Answer: - uses opportunity cost
- determines specialization
- limited resources lead to opportunity cost
- lower opportunity cost determines comparative advantage
◉ Hectscher-Ohlin Theory (Factor endowment theory). Answer:
Factors of production: land, labor, natural resources, capital, and
technology
◉ Country Similarity theory. Answer: - Firm based theory that
incorporate brand, customer loyalty, technology, and quality into the
understanding of trade flows.
- consumers in countries that are in the same or similar stage of
development would have similar preferences
- companies first product for domestic consumption
◉ Global strategic rivalry theory. Answer: - focuses on the firms
competitive advantage
,- barriers to entry (r&d, IP rights, economies of scale, control of
resources)
◉ Negative impacts of free trade. Answer: - possible manufacturing
job loss in developed countries
- labor standards and working conditions are concerned in
developing nations
- domestic businesses faces challenged
◉ What can governments use to limit trade. Answer: - sanctions
(embargo), anti-dumping, protectionism, infant industry argument,
health and safety, limiting outsourcing, global monopoly, and
national security
◉ Benefits of Multi national corps. (MNCs). Answer: -often overcome
barriers to trade, sidestep regulatory problems, shift production
from one plant to another, tap new technology from around the
around, save on labor cost.
◉ Foreign Direct Investment (DIRECT). Answer: 1. done with the
primary objective to manage the asses
2. direct in involvement and ownership control
3. more permanent in nature as it is difficult to sell off
, ◉ Foreign Direct Investment (PORTFOLIO). Answer: 1. objective is
to acquire an income stream without the operational control
2. no direct involvement in management
3. more liquid in nature as it is easy to sell
◉ Why do host governments promote FDI?. Answer: - economic
growth
-increased employment and reduced poverty
- improved human capital development
- new technologies and business knowledge
- increased tax revenues
◉ FDI attractions. Answer: - tax incentives
- develop and modernize local infrastructure
- reduce bureaucracy and regulatory requirements
- education and job training
◉ FDI restrictions. Answer: - protect local industry and critical
resources
- preserve national and local culture
- maintain policies and economic independence
- manage economic growth
