WGU D080 Managing in a Global Business
Environment (QHC2) | Objective Assessment Exam
Questions And Correct Answers (Verified Answers)
Plus Rationale 2027 Q&A| Instant Download Pdf
1. Which concept best describes the increasing integration of
national economies through trade, investment, technology, and
communication?
• A. Mercantilism
• B. Globalization
• C. Nationalization
• D. Protectionism
Answer: B. Globalization
Rationale: Globalization refers to the growing interconnectedness of
countries through the movement of goods, services, capital, technology,
and people across borders. It is the foundation of modern international
business.
, 2. According to the theory of comparative advantage, countries
should:
• A. Produce everything domestically.
• B. Export only raw materials.
• C. Specialize in producing goods with the lowest opportunity cost.
• D. Eliminate international trade.
Answer: C. Specialize in producing goods with the lowest opportunity
cost.
Rationale: Comparative advantage explains that nations benefit by
specializing in products they can produce relatively more efficiently than
others and trading for the rest.
3. Which organization primarily establishes rules governing
international trade?
• A. IMF
• B. World Bank
• C. WTO
• D. OECD
Answer: C. WTO
,Rationale: The World Trade Organization develops and enforces
international trade rules while resolving disputes among member
nations.
4. A tariff is:
• A. A government subsidy.
• B. A tax imposed on imported goods.
• C. A restriction on exports.
• D. A foreign investment strategy.
Answer: B. A tax imposed on imported goods.
Rationale: Tariffs increase the cost of imported products to protect
domestic industries or generate government revenue.
5. Which market entry strategy provides the greatest managerial
control?
• A. Licensing
• B. Exporting
• C. Wholly owned subsidiary
• D. Franchising
Answer: C. Wholly owned subsidiary
, Rationale: A wholly owned subsidiary gives the parent company
complete ownership and operational control.
6. Which economic system relies primarily on supply and demand to
allocate resources?
• A. Traditional economy
• B. Command economy
• C. Market economy
• D. Mixed socialist economy
Answer: C. Market economy
Rationale: Market economies depend largely on consumer demand and
competition rather than government planning.
7. Which political risk is most likely to discourage foreign direct
investment?
• A. Stable legal institutions
• B. Currency appreciation
• C. Expropriation of foreign assets
• D. Low inflation
Answer: C. Expropriation of foreign assets
Environment (QHC2) | Objective Assessment Exam
Questions And Correct Answers (Verified Answers)
Plus Rationale 2027 Q&A| Instant Download Pdf
1. Which concept best describes the increasing integration of
national economies through trade, investment, technology, and
communication?
• A. Mercantilism
• B. Globalization
• C. Nationalization
• D. Protectionism
Answer: B. Globalization
Rationale: Globalization refers to the growing interconnectedness of
countries through the movement of goods, services, capital, technology,
and people across borders. It is the foundation of modern international
business.
, 2. According to the theory of comparative advantage, countries
should:
• A. Produce everything domestically.
• B. Export only raw materials.
• C. Specialize in producing goods with the lowest opportunity cost.
• D. Eliminate international trade.
Answer: C. Specialize in producing goods with the lowest opportunity
cost.
Rationale: Comparative advantage explains that nations benefit by
specializing in products they can produce relatively more efficiently than
others and trading for the rest.
3. Which organization primarily establishes rules governing
international trade?
• A. IMF
• B. World Bank
• C. WTO
• D. OECD
Answer: C. WTO
,Rationale: The World Trade Organization develops and enforces
international trade rules while resolving disputes among member
nations.
4. A tariff is:
• A. A government subsidy.
• B. A tax imposed on imported goods.
• C. A restriction on exports.
• D. A foreign investment strategy.
Answer: B. A tax imposed on imported goods.
Rationale: Tariffs increase the cost of imported products to protect
domestic industries or generate government revenue.
5. Which market entry strategy provides the greatest managerial
control?
• A. Licensing
• B. Exporting
• C. Wholly owned subsidiary
• D. Franchising
Answer: C. Wholly owned subsidiary
, Rationale: A wholly owned subsidiary gives the parent company
complete ownership and operational control.
6. Which economic system relies primarily on supply and demand to
allocate resources?
• A. Traditional economy
• B. Command economy
• C. Market economy
• D. Mixed socialist economy
Answer: C. Market economy
Rationale: Market economies depend largely on consumer demand and
competition rather than government planning.
7. Which political risk is most likely to discourage foreign direct
investment?
• A. Stable legal institutions
• B. Currency appreciation
• C. Expropriation of foreign assets
• D. Low inflation
Answer: C. Expropriation of foreign assets
