WGU D080 ACTUAL OA
FINAL EXAM MANAGING IN A
GLOBAL BUSINESS
ENVIRONMENT WELL
STRUCTURED QUESTIONS AND
CORRECT ANSWERS LATEST
GUIDE 2026
,1. A company is considering establishing a subsidiary in a new host country and wishes to prepare its expatriates
to adapt to the local environment.
How should this company prepare its expatriates?
Negotiation Operational
training Repatriation
Cultural Training✓✓ correct answer Cultural training
2. What happens to consumer surplus when tariffs and quotas are discontin- ued?✓✓ correct answer They increase
3. Which type of tariff is put in place to specifically ensure that domestic indus- tries are given an advantage?✓✓
correct answer Protective
4. What is a benefit of implementing a system of free trade?✓✓ correct answer Reduced taritts would result in lower costs of imported
raw materials.
5. How are free trade agreements handled differently than treaties in the United States?✓✓ correct answer Treaties must be
approved by the Senate, whereas a free trade agreement must pass both houses of Congress.
6. Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of Congress.✓
✓ correct answer Taritts
7. An airplane manufacturer outsources the manufacture of some its parts and sub-assemblies. They are then
returned to the manufacturer's main plant for final assembly.✓✓ correct answer Value chain
8. Country A exports more goods to Country B than it imports from Country B. Country A receives more
monetary gain by using this practice.
Which relationship does Country A have with Country B?✓✓ correct answer Trade surplus
9. Country A has been criticized by other countries for giving generous tax credits to its corn farmers, which in
turn, enables the country's farmers to sell corn on the international markets cheaper than all other countries.
Which term is used by other countries to describe this practice?✓✓ correct answer Governmentsubsidies
10. A farmer knows that it takes 100 hours of labor to produce 100 bushels of corn. It only takes 50 hours of labor
to produce 100 bushels of soy. Currently,
,a bushel of corn is selling at three times a bushel of soy.
Which type of cost should the farmer use to determine what to plant?✓✓ correct answer Opportunity
11. A country produces goods more efficiently than all other countries in the same industry.
Which type of advantage does this country have?✓✓ correct answer Absolute
12. Country A exports farming equipment to Country B, while Country B ex- ports car manufacturing equipment
to Country A. Both countries are highly developed and could develop these industries separately but instead made
the decision to export and import these products from each other.
Which unique condition caused this practice between the two countries?✓✓ correct answer Skill specialization
13. A company produces the same product over and over, and it has caused the manufacturing cost of the product
to become cheaper and more competitive in international markets than similar products in the industry.
Which approach is this company using to achieve this ability?✓✓ correct answer Economies of scale
14. A country with a new economy implemented trade protectionism in relation to countries with more developed
economies.
Why did the country take this action?✓✓ correct answer To restrict international economic trade
15. How do anti dumping laws protect a domestic market?✓✓ correct answer They prevent foreign companies from selling goods and
services at or below cost.
16. How do Congress and the Department of Agriculture use quotas to their advantage?✓✓ correct answer To increase
domestic prices to specific levels to make products profitable
17. Which strategy should a government use to offset the cost of manufacturing domestically?✓✓ correct answer
Subsidies
18. Which type of globalization refers to the international movement of goods, capital, and services?✓✓ correct
answer Economic
19. The CEO of an international company reminds the executive vice presidents that while the company may do
good while performing corporate social re- sponsibilities, the business has one ultimate goal since it is engaged
in com- mercial activities with corporate shareholders.
Which ultimate goal is the CEO emphasizing to the executive vice presidents?-
✓✓ correct answer Profitability
, 20. A CEO decides to expand the company's business internationally by purchas- ing production capability in
another country, including the foreign country's buildings and equipment.
Which type of market entry is the CEO using?✓✓ correct answer Direct investment
21. A CEO seeks to better use the economies of scale and scope of production to increase the international
company's profits.
Which type of globalization driver is the CEO seeking to use?✓✓ correct answer Cost
22. A CEO is discussing an expansion of production of a company's highly per- ishable dairy line in a country that
can offer low labor costs and good internet connections. The country has no highways, and roads are poorly
maintained. Which challenge to international business expansion do the road conditions present?✓✓ correct answer
Infrastructure
23. Which argument is used by critics who wish to discourage movement to- wards globalization?✓✓ correct answer
It increases the wealth of the rich rather than the poor
24. Anarchism✓✓ correct answer Individuals control political activities, and the government has no control over these activities
25. Totalitarianism✓✓ correct answer A centralized government creates oppressive policies based on ideas from powerful lead- ership.
26. Direct democracy✓✓ correct answer The government provides a method of voting for the people of a country, not for elected oflcials.
27. What is a free trade zone?✓✓ correct answer A geographic region in which a county will reduce restrictions that might prevent or reduce trade
28. Which term describes a government giving a tax break to a producer to increase their global
competitiveness?✓✓ correct answer Subsidies
29. Industrialized✓✓ correct answer Prevalent formation of new markets with possibility of saturation
30. Less-developed✓✓ correct answer Focus on agriculture and raw materials with limited imports
31. Developing country✓✓ correct answer Growing population which leads to long-term growth potential.
32. Which type of economy is decentralized and allows firms and households to participate in global trade with
minimum governmental interference?✓✓ correct answer Market
33. What type of economy is centered on families or tribes where little to no global trade is practiced?✓✓ correct
answer Traditional
34. Socialism✓✓ correct answer a system in which the government owns and operates a country's means of production
FINAL EXAM MANAGING IN A
GLOBAL BUSINESS
ENVIRONMENT WELL
STRUCTURED QUESTIONS AND
CORRECT ANSWERS LATEST
GUIDE 2026
,1. A company is considering establishing a subsidiary in a new host country and wishes to prepare its expatriates
to adapt to the local environment.
How should this company prepare its expatriates?
Negotiation Operational
training Repatriation
Cultural Training✓✓ correct answer Cultural training
2. What happens to consumer surplus when tariffs and quotas are discontin- ued?✓✓ correct answer They increase
3. Which type of tariff is put in place to specifically ensure that domestic indus- tries are given an advantage?✓✓
correct answer Protective
4. What is a benefit of implementing a system of free trade?✓✓ correct answer Reduced taritts would result in lower costs of imported
raw materials.
5. How are free trade agreements handled differently than treaties in the United States?✓✓ correct answer Treaties must be
approved by the Senate, whereas a free trade agreement must pass both houses of Congress.
6. Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of Congress.✓
✓ correct answer Taritts
7. An airplane manufacturer outsources the manufacture of some its parts and sub-assemblies. They are then
returned to the manufacturer's main plant for final assembly.✓✓ correct answer Value chain
8. Country A exports more goods to Country B than it imports from Country B. Country A receives more
monetary gain by using this practice.
Which relationship does Country A have with Country B?✓✓ correct answer Trade surplus
9. Country A has been criticized by other countries for giving generous tax credits to its corn farmers, which in
turn, enables the country's farmers to sell corn on the international markets cheaper than all other countries.
Which term is used by other countries to describe this practice?✓✓ correct answer Governmentsubsidies
10. A farmer knows that it takes 100 hours of labor to produce 100 bushels of corn. It only takes 50 hours of labor
to produce 100 bushels of soy. Currently,
,a bushel of corn is selling at three times a bushel of soy.
Which type of cost should the farmer use to determine what to plant?✓✓ correct answer Opportunity
11. A country produces goods more efficiently than all other countries in the same industry.
Which type of advantage does this country have?✓✓ correct answer Absolute
12. Country A exports farming equipment to Country B, while Country B ex- ports car manufacturing equipment
to Country A. Both countries are highly developed and could develop these industries separately but instead made
the decision to export and import these products from each other.
Which unique condition caused this practice between the two countries?✓✓ correct answer Skill specialization
13. A company produces the same product over and over, and it has caused the manufacturing cost of the product
to become cheaper and more competitive in international markets than similar products in the industry.
Which approach is this company using to achieve this ability?✓✓ correct answer Economies of scale
14. A country with a new economy implemented trade protectionism in relation to countries with more developed
economies.
Why did the country take this action?✓✓ correct answer To restrict international economic trade
15. How do anti dumping laws protect a domestic market?✓✓ correct answer They prevent foreign companies from selling goods and
services at or below cost.
16. How do Congress and the Department of Agriculture use quotas to their advantage?✓✓ correct answer To increase
domestic prices to specific levels to make products profitable
17. Which strategy should a government use to offset the cost of manufacturing domestically?✓✓ correct answer
Subsidies
18. Which type of globalization refers to the international movement of goods, capital, and services?✓✓ correct
answer Economic
19. The CEO of an international company reminds the executive vice presidents that while the company may do
good while performing corporate social re- sponsibilities, the business has one ultimate goal since it is engaged
in com- mercial activities with corporate shareholders.
Which ultimate goal is the CEO emphasizing to the executive vice presidents?-
✓✓ correct answer Profitability
, 20. A CEO decides to expand the company's business internationally by purchas- ing production capability in
another country, including the foreign country's buildings and equipment.
Which type of market entry is the CEO using?✓✓ correct answer Direct investment
21. A CEO seeks to better use the economies of scale and scope of production to increase the international
company's profits.
Which type of globalization driver is the CEO seeking to use?✓✓ correct answer Cost
22. A CEO is discussing an expansion of production of a company's highly per- ishable dairy line in a country that
can offer low labor costs and good internet connections. The country has no highways, and roads are poorly
maintained. Which challenge to international business expansion do the road conditions present?✓✓ correct answer
Infrastructure
23. Which argument is used by critics who wish to discourage movement to- wards globalization?✓✓ correct answer
It increases the wealth of the rich rather than the poor
24. Anarchism✓✓ correct answer Individuals control political activities, and the government has no control over these activities
25. Totalitarianism✓✓ correct answer A centralized government creates oppressive policies based on ideas from powerful lead- ership.
26. Direct democracy✓✓ correct answer The government provides a method of voting for the people of a country, not for elected oflcials.
27. What is a free trade zone?✓✓ correct answer A geographic region in which a county will reduce restrictions that might prevent or reduce trade
28. Which term describes a government giving a tax break to a producer to increase their global
competitiveness?✓✓ correct answer Subsidies
29. Industrialized✓✓ correct answer Prevalent formation of new markets with possibility of saturation
30. Less-developed✓✓ correct answer Focus on agriculture and raw materials with limited imports
31. Developing country✓✓ correct answer Growing population which leads to long-term growth potential.
32. Which type of economy is decentralized and allows firms and households to participate in global trade with
minimum governmental interference?✓✓ correct answer Market
33. What type of economy is centered on families or tribes where little to no global trade is practiced?✓✓ correct
answer Traditional
34. Socialism✓✓ correct answer a system in which the government owns and operates a country's means of production
