1|Page
WGU D080 Practice Questions (NEW UPDATED VERSION) LATEST
ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED
QUESTIONS AND ANSWERS) | GUARANTEED PASS A+ UPDATED THIS
YEAR
1. A company standardizes its products worldwide to achieve economies of scale. This reflects
which strategy?
A. Multidomestic
B. Transnational
C. Global
D. International
Rationale:
A global strategy emphasizes standardization to reduce costs. Multidomestic focuses on local
responsiveness; transnational balances both.
2. Which trade theory explains why countries specialize based on opportunity cost?
A. Absolute advantage
B. Comparative advantage
C. Mercantilism
D. Protectionism
Rationale:
Comparative advantage focuses on lower opportunity cost, not absolute efficiency.
3. A U.S. company pays a small fee to expedite routine customs paperwork abroad. This is best
described as:
A. Bribery
B. Ethical relativism
C. Facilitation payment
D. CSR violation
2026 2027 GRADED A+
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Rationale:
Facilitation payments are small payments to speed up routine government actions (though still
restricted by many firms).
4. High-context cultures primarily rely on:
A. Written contracts
B. Explicit verbal communication
C. Nonverbal cues and relationships
D. Legal enforcement
Rationale:
High-context cultures emphasize relationships, tone, and shared understanding.
5. Which Hofstede dimension measures comfort with ambiguity?
A. Individualism
B. Masculinity
C. Power distance
D. Uncertainty avoidance
Rationale:
High uncertainty avoidance cultures prefer rules and structure.
6. When a home currency strengthens, exports become:
A. Cheaper
B. More competitive
C. More expensive
D. Unaffected
Rationale:
A stronger currency makes exports more expensive for foreign buyers.
7. Which organization enforces international trade rules?
A. IMF
B. World Bank
2026 2027 GRADED A+
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C. WTO
D. UN
Rationale:
The WTO resolves trade disputes and enforces trade agreements.
8. A firm balancing global efficiency and local responsiveness uses which strategy?
A. Global
B. Multidomestic
C. International
D. Transnational
Rationale:
Transnational strategy integrates both cost efficiency and local adaptation.
9. Tariffs primarily benefit:
A. Consumers
B. Exporters
C. Domestic producers
D. Foreign governments
Rationale:
Tariffs protect domestic industries by raising foreign product prices.
10. Ethical relativism argues that:
A. Ethics are universal
B. Ethics depend on culture
C. Ethics are legally defined
D. Ethics are profit-driven
Rationale:
Ethical relativism bases morality on local norms, which can conflict with global standards.
2026 2027 GRADED A+
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11. Which factor increases political risk?
A. Stable currency
B. Strong rule of law
C. Nationalization threats
D. Free trade agreements
Rationale:
Nationalization directly threatens foreign-owned assets.
12. CSR primarily focuses on:
A. Shareholder profits
B. Legal compliance only
C. Social and environmental impact
D. Cost minimization
Rationale:
CSR extends beyond profit to societal responsibility.
13. NAFTA was replaced by:
A. EU
B. WTO
C. USMCA
D. ASEAN
Rationale:
NAFTA became USMCA (United States–Mexico–Canada Agreement).
14. Which situation best reflects absolute advantage?
A. Producing at lower opportunity cost
B. Producing more efficiently than others
C. Specializing in one good
D. Eliminating trade barriers
Rationale:
Absolute advantage = higher productivity.
2026 2027 GRADED A+
WGU D080 Practice Questions (NEW UPDATED VERSION) LATEST
ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED
QUESTIONS AND ANSWERS) | GUARANTEED PASS A+ UPDATED THIS
YEAR
1. A company standardizes its products worldwide to achieve economies of scale. This reflects
which strategy?
A. Multidomestic
B. Transnational
C. Global
D. International
Rationale:
A global strategy emphasizes standardization to reduce costs. Multidomestic focuses on local
responsiveness; transnational balances both.
2. Which trade theory explains why countries specialize based on opportunity cost?
A. Absolute advantage
B. Comparative advantage
C. Mercantilism
D. Protectionism
Rationale:
Comparative advantage focuses on lower opportunity cost, not absolute efficiency.
3. A U.S. company pays a small fee to expedite routine customs paperwork abroad. This is best
described as:
A. Bribery
B. Ethical relativism
C. Facilitation payment
D. CSR violation
2026 2027 GRADED A+
,2|Page
Rationale:
Facilitation payments are small payments to speed up routine government actions (though still
restricted by many firms).
4. High-context cultures primarily rely on:
A. Written contracts
B. Explicit verbal communication
C. Nonverbal cues and relationships
D. Legal enforcement
Rationale:
High-context cultures emphasize relationships, tone, and shared understanding.
5. Which Hofstede dimension measures comfort with ambiguity?
A. Individualism
B. Masculinity
C. Power distance
D. Uncertainty avoidance
Rationale:
High uncertainty avoidance cultures prefer rules and structure.
6. When a home currency strengthens, exports become:
A. Cheaper
B. More competitive
C. More expensive
D. Unaffected
Rationale:
A stronger currency makes exports more expensive for foreign buyers.
7. Which organization enforces international trade rules?
A. IMF
B. World Bank
2026 2027 GRADED A+
,3|Page
C. WTO
D. UN
Rationale:
The WTO resolves trade disputes and enforces trade agreements.
8. A firm balancing global efficiency and local responsiveness uses which strategy?
A. Global
B. Multidomestic
C. International
D. Transnational
Rationale:
Transnational strategy integrates both cost efficiency and local adaptation.
9. Tariffs primarily benefit:
A. Consumers
B. Exporters
C. Domestic producers
D. Foreign governments
Rationale:
Tariffs protect domestic industries by raising foreign product prices.
10. Ethical relativism argues that:
A. Ethics are universal
B. Ethics depend on culture
C. Ethics are legally defined
D. Ethics are profit-driven
Rationale:
Ethical relativism bases morality on local norms, which can conflict with global standards.
2026 2027 GRADED A+
, 4|Page
11. Which factor increases political risk?
A. Stable currency
B. Strong rule of law
C. Nationalization threats
D. Free trade agreements
Rationale:
Nationalization directly threatens foreign-owned assets.
12. CSR primarily focuses on:
A. Shareholder profits
B. Legal compliance only
C. Social and environmental impact
D. Cost minimization
Rationale:
CSR extends beyond profit to societal responsibility.
13. NAFTA was replaced by:
A. EU
B. WTO
C. USMCA
D. ASEAN
Rationale:
NAFTA became USMCA (United States–Mexico–Canada Agreement).
14. Which situation best reflects absolute advantage?
A. Producing at lower opportunity cost
B. Producing more efficiently than others
C. Specializing in one good
D. Eliminating trade barriers
Rationale:
Absolute advantage = higher productivity.
2026 2027 GRADED A+
