BUSINESS ENVIRONMENT ACTUAL EXAM
2026/2027 WITH 250 QUESTIONS AND
EXPERT-VERIFIED CORRECT ANSWERS |
ALREADY GRADED A+ | GUARANTEED
SUCCESS | WGU D080 PRACTICE EXAM
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
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
How do anti dumping laws protect a domestic market? - CORRECT ANSWER-
They prevent foreign companies from selling goods and services at or below cost.
,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
Which strategy should a government use to offset the cost of manufacturing
domestically? - CORRECT ANSWER-Subsidies
Which type of globalization refers to the international movement of goods, capital,
and services? - CORRECT ANSWER-Economic
The CEO of an international company reminds the executive vice presidents that
while the company may do good while performing corporate social
responsibilities, the business has one ultimate goal since it is engaged in
commercial activities with corporate shareholders.
Which ultimate goal is the CEO emphasizing to the executive vice presidents? -
CORRECT ANSWER-Profitability
A CEO decides to expand the company's business internationally by purchasing
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
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
,A CEO is discussing an expansion of production of a company's highly perishable
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
Which argument is used by critics who wish to discourage movement towards
globalization? - CORRECT ANSWER-It increases the wealth of the rich rather
than the poor
Anarchism - CORRECT ANSWER-Individuals control political activities, and the
government has no control over these activities
Totalitarianism - CORRECT ANSWER-A centralized government creates
oppressive policies based on ideas from powerful leadership.
Direct democracy - CORRECT ANSWER-The government provides a method of
voting for the people of a country, not for elected officials.
What is a free trade zone? - CORRECT ANSWER-A geographic region in which a
county will reduce restrictions that might prevent or reduce trade
Which term describes a government giving a tax break to a producer to increase
their global competitiveness? - CORRECT ANSWER-Subsidies
Industrialized - CORRECT ANSWER-Prevalent formation of new markets with
possibility of saturation
, Less-developed - CORRECT ANSWER-Focus on agriculture and raw materials
with limited imports
Developing country - CORRECT ANSWER-Growing population which leads to
long-term growth potential.
Which type of economy is decentralized and allows firms and households to
participate in global trade with minimum governmental interference? - CORRECT
ANSWER-Market
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
What happens to consumer surplus when tariffs and quotas are discontinued? -
CORRECT ANSWER-They increase
Which type of tariff is put in place to specifically ensure that domestic industries
are given an advantage? - CORRECT ANSWER-Protective
What is a benefit of implementing a system of free trade? - CORRECT ANSWER-
Reduced tariffs would result in lower costs of imported raw materials.