WGU D080 Managing in a Global Business Environment (QHC2) |
Objective Assessment | OA | Actual Expert Questions and Answers | 2026
Update | 100% Verified (A+ RATED)
UNIT 1: Globalization & Systems
Question 1: Which of the following best describes globalization in business?
A) Limiting business activities to domestic markets
B) Integration of markets, production, and operations across national borders
C) Separation of economies through trade barriers
D) A government policy to restrict capital flows
Answer: B Globalization is the integration of markets, production, and operations across national borders
to increase efficiency, access resources, and reach new customers worldwide.
Question 2: Which type of globalization refers to the international movement of goods, capital, and
services?
A) Cultural globalization
B) Political globalization
C) Economic globalization
D) Social globalization
Answer: C Economic globalization specifically refers to the cross-border movement of goods, capital,
services, technology, and information through trade and trade agreements.
Question 3: According to Thomas Friedman, which stage of globalization is characterized by individuals
being the primary drivers?
A) Globalization 1.0
B) Globalization 2.0
C) Globalization 3.0
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,D) Globalization 4.0
Answer: C Globalization 3.0, according to Thomas Friedman, is the stage where individuals, rather than
nations or companies, are the primary drivers of globalization.
Question 4: Which stage of globalization, according to Thomas Friedman, is characterized by companies
being the primary drivers?
A) Globalization 1.0
B) Globalization 2.0
C) Globalization 3.0
D) Globalization 4.0
Answer: B Globalization 2.0, according to Thomas Friedman, is the stage where companies are the
primary drivers of globalization.
Question 5: Which stage of globalization, according to Thomas Friedman, is characterized by countries
being the primary drivers?
A) Globalization 1.0
B) Globalization 2.0
C) Globalization 3.0
D) Globalization 4.0
Answer: A Globalization 1.0 was driven by countries and nations expanding their global influence
through exploration and colonization.
Question 6: What is a benefit of implementing a system of free trade?
A) Increased tariffs on imported goods
B) Reduced tariffs resulting in lower costs of imported raw materials
C) Higher prices for consumers
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,D) Decreased competition
Answer: B Free trade reduces or eliminates tariffs, which lowers the cost of imported raw materials and
benefits domestic manufacturers.
Question 7: Which of the following is a positive effect of economic globalization?
A) Lost jobs in developed countries
B) Environmental damage in developing countries
C) Increase in information technology and faster economic development
D) Loss of cultural uniqueness
Answer: C Positive effects of economic globalization include increased information technology, faster
economic development, improvement in social well-being, and more trade and investments.
Question 8: What is a driver of globalization?
A) Protectionist trade policies
B) Technological advancements and reduced trade barriers
C) Cultural isolation
D) Nationalization of industries
Answer: B Drivers of globalization include technological advancements, reduced trade barriers, and
increased economic integration.
Question 9: What is the primary purpose of the CAGE framework?
A) To analyze a company's internal operations
B) To assess cultural, administrative, geographic, and economic differences between countries
C) To evaluate employee performance
D) To measure stock market performance
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, Answer: B The CAGE framework is a tool used for assessing global market risks by analyzing cultural,
administrative, geographic, and economic distances between countries.
Question 10: What is the primary purpose of a PEST analysis?
A) To evaluate a company's financial performance
B) To analyze political, economic, social, and technological factors in the global business environment
C) To assess employee satisfaction
D) To measure customer loyalty
Answer: B PEST analysis is a tool for assessing global market risks by examining political, economic,
social, and technological forces that shape the global business environment.
Question 11: Country A receives more monetary gain by exporting goods to Country B than it spends on
imports from Country B. Which relationship does Country A have with Country B?
A) Trade deficit
B) Trade surplus
C) Balanced trade
D) Trade embargo
Answer: B A trade surplus occurs when a country's exports exceed its imports. This means more money is
flowing into the country than leaving it through trade.
Question 12: What is the difference between comparative advantage and absolute advantage?
A) Comparative advantage focuses on productivity; absolute advantage focuses on cost
B) Absolute advantage measures efficiency; comparative advantage measures opportunity cost
C) They are the same concept
D) Comparative advantage only applies to services
4|Page SUCCESS!!!
Objective Assessment | OA | Actual Expert Questions and Answers | 2026
Update | 100% Verified (A+ RATED)
UNIT 1: Globalization & Systems
Question 1: Which of the following best describes globalization in business?
A) Limiting business activities to domestic markets
B) Integration of markets, production, and operations across national borders
C) Separation of economies through trade barriers
D) A government policy to restrict capital flows
Answer: B Globalization is the integration of markets, production, and operations across national borders
to increase efficiency, access resources, and reach new customers worldwide.
Question 2: Which type of globalization refers to the international movement of goods, capital, and
services?
A) Cultural globalization
B) Political globalization
C) Economic globalization
D) Social globalization
Answer: C Economic globalization specifically refers to the cross-border movement of goods, capital,
services, technology, and information through trade and trade agreements.
Question 3: According to Thomas Friedman, which stage of globalization is characterized by individuals
being the primary drivers?
A) Globalization 1.0
B) Globalization 2.0
C) Globalization 3.0
1|Page SUCCESS!!!
,D) Globalization 4.0
Answer: C Globalization 3.0, according to Thomas Friedman, is the stage where individuals, rather than
nations or companies, are the primary drivers of globalization.
Question 4: Which stage of globalization, according to Thomas Friedman, is characterized by companies
being the primary drivers?
A) Globalization 1.0
B) Globalization 2.0
C) Globalization 3.0
D) Globalization 4.0
Answer: B Globalization 2.0, according to Thomas Friedman, is the stage where companies are the
primary drivers of globalization.
Question 5: Which stage of globalization, according to Thomas Friedman, is characterized by countries
being the primary drivers?
A) Globalization 1.0
B) Globalization 2.0
C) Globalization 3.0
D) Globalization 4.0
Answer: A Globalization 1.0 was driven by countries and nations expanding their global influence
through exploration and colonization.
Question 6: What is a benefit of implementing a system of free trade?
A) Increased tariffs on imported goods
B) Reduced tariffs resulting in lower costs of imported raw materials
C) Higher prices for consumers
2|Page SUCCESS!!!
,D) Decreased competition
Answer: B Free trade reduces or eliminates tariffs, which lowers the cost of imported raw materials and
benefits domestic manufacturers.
Question 7: Which of the following is a positive effect of economic globalization?
A) Lost jobs in developed countries
B) Environmental damage in developing countries
C) Increase in information technology and faster economic development
D) Loss of cultural uniqueness
Answer: C Positive effects of economic globalization include increased information technology, faster
economic development, improvement in social well-being, and more trade and investments.
Question 8: What is a driver of globalization?
A) Protectionist trade policies
B) Technological advancements and reduced trade barriers
C) Cultural isolation
D) Nationalization of industries
Answer: B Drivers of globalization include technological advancements, reduced trade barriers, and
increased economic integration.
Question 9: What is the primary purpose of the CAGE framework?
A) To analyze a company's internal operations
B) To assess cultural, administrative, geographic, and economic differences between countries
C) To evaluate employee performance
D) To measure stock market performance
3|Page SUCCESS!!!
, Answer: B The CAGE framework is a tool used for assessing global market risks by analyzing cultural,
administrative, geographic, and economic distances between countries.
Question 10: What is the primary purpose of a PEST analysis?
A) To evaluate a company's financial performance
B) To analyze political, economic, social, and technological factors in the global business environment
C) To assess employee satisfaction
D) To measure customer loyalty
Answer: B PEST analysis is a tool for assessing global market risks by examining political, economic,
social, and technological forces that shape the global business environment.
Question 11: Country A receives more monetary gain by exporting goods to Country B than it spends on
imports from Country B. Which relationship does Country A have with Country B?
A) Trade deficit
B) Trade surplus
C) Balanced trade
D) Trade embargo
Answer: B A trade surplus occurs when a country's exports exceed its imports. This means more money is
flowing into the country than leaving it through trade.
Question 12: What is the difference between comparative advantage and absolute advantage?
A) Comparative advantage focuses on productivity; absolute advantage focuses on cost
B) Absolute advantage measures efficiency; comparative advantage measures opportunity cost
C) They are the same concept
D) Comparative advantage only applies to services
4|Page SUCCESS!!!
