01/01/2026
ENVIRONMENT FINAL EXAM
WGU D080 MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT FINAL EXAM QUESTION AND CORRECT
ANSWER LATEST 2026
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
Cultural training
What happens to consumer surplus when tariffs and quotas are discontinued?
They increase
Which type of tariff is put in place to specifically ensure that domestic industries are given an
advantage?
Protective
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What is a benefit of implementing a system of free trade?
Reduced tariffs would result in lower costs of imported raw materials.
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, WGU D080 MANAGING IN A GLOBAL BUSINESS
01/01/2026
ENVIRONMENT FINAL EXAM
How are free trade agreements handled differently than treaties in the United States?
Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of
Congress.
Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of
Congress.
Tariffs
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.
Value chain
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?
Trade surplus
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?
Government subsidies
1/1/2026
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, WGU D080 MANAGING IN A GLOBAL BUSINESS
01/01/2026
ENVIRONMENT FINAL EXAM
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?
Opportunity
A country produces goods more efficiently than all other countries in the same industry.
Which type of advantage does this country have?
Absolute
Country A exports farming equipment to Country B, while Country B exports 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?
Skill specialization
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?
Economies of scale
A country with a new economy implemented trade protectionism in relation to countries with more
developed economies.
1/1/2026
Why did the country take this action?
To restrict international economic trade
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, WGU D080 MANAGING IN A GLOBAL BUSINESS
01/01/2026
ENVIRONMENT FINAL EXAM
How do anti dumping laws protect a domestic market?
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?
To increase domestic prices to specific levels to make products profitable
Which strategy should a government use to offset the cost of manufacturing domestically?
Subsidies
Which type of globalization refers to the international movement of goods, capital, and services?
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?
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.
1/1/2026
Which type of market entry is the CEO using?
Direct investment
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