WGU D080 MANAGING IN A GLOBAL
BUSINESS ENVIRONMENT TEST
BANK Exam Study Guide – Practice
Questions with Verified Answers.
GRADED A+. Latest 2026/2027
Update
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1. Which of the following best describes globalization?
A. Limiting business to domestic markets
B. Integration of markets, technology, and people worldwide
C. Separation of economies by trade barriers
D. Restricting capital flow between countries
- Answer✔✔- B — Globalization connects world economies through trade,
investment, and cultural exchange.
2. A company moving its production to another country to reduce costs is
engaging in:
A. Licensing
B. Outsourcing
C. Franchising
D. Exporting
- Answer✔✔- B — Outsourcing transfers specific operations to a foreign partner
to cut expenses or gain expertise.
3. Select all that apply: Which organizations promote global economic stability?
,☐ A. World Bank
☐ B. World Trade Organization (WTO)
☐ C. International Monetary Fund (IMF)
☐ D. Federal Reserve
- Answer✔✔- A, B, C — The World Bank funds development, the IMF ensures
financial stability, and WTO promotes free trade.
4. The main advantage of foreign direct investment (FDI) is:
A. Immediate access to export subsidies
B. Greater control over operations abroad
C. Reduced financial risk
D. Elimination of cultural barriers
- Answer✔✔- B — FDI provides control and long-term presence in a host market.
5. Which trade theory argues that nations should specialize in goods they
produce most efficiently?
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A. Mercantilism
B. Comparative advantage
C. Absolute advantage
D. Protectionism
- Answer✔✔- B — Comparative advantage suggests specialization improves
overall global efficiency.
6. A high tariff on imported steel primarily:
A. Encourages free trade
B. Protects domestic producers
C. Decreases government revenue
D. Benefits consumers
- Answer✔✔- B — Tariffs are trade barriers meant to protect local industries.
7. In a joint venture, two or more companies:
A. Merge permanently
B. Collaborate for a specific project or market
BUSINESS ENVIRONMENT TEST
BANK Exam Study Guide – Practice
Questions with Verified Answers.
GRADED A+. Latest 2026/2027
Update
, lOMoARcPSD|65951791
1. Which of the following best describes globalization?
A. Limiting business to domestic markets
B. Integration of markets, technology, and people worldwide
C. Separation of economies by trade barriers
D. Restricting capital flow between countries
- Answer✔✔- B — Globalization connects world economies through trade,
investment, and cultural exchange.
2. A company moving its production to another country to reduce costs is
engaging in:
A. Licensing
B. Outsourcing
C. Franchising
D. Exporting
- Answer✔✔- B — Outsourcing transfers specific operations to a foreign partner
to cut expenses or gain expertise.
3. Select all that apply: Which organizations promote global economic stability?
,☐ A. World Bank
☐ B. World Trade Organization (WTO)
☐ C. International Monetary Fund (IMF)
☐ D. Federal Reserve
- Answer✔✔- A, B, C — The World Bank funds development, the IMF ensures
financial stability, and WTO promotes free trade.
4. The main advantage of foreign direct investment (FDI) is:
A. Immediate access to export subsidies
B. Greater control over operations abroad
C. Reduced financial risk
D. Elimination of cultural barriers
- Answer✔✔- B — FDI provides control and long-term presence in a host market.
5. Which trade theory argues that nations should specialize in goods they
produce most efficiently?
, lOMoARcPSD|65951791
A. Mercantilism
B. Comparative advantage
C. Absolute advantage
D. Protectionism
- Answer✔✔- B — Comparative advantage suggests specialization improves
overall global efficiency.
6. A high tariff on imported steel primarily:
A. Encourages free trade
B. Protects domestic producers
C. Decreases government revenue
D. Benefits consumers
- Answer✔✔- B — Tariffs are trade barriers meant to protect local industries.
7. In a joint venture, two or more companies:
A. Merge permanently
B. Collaborate for a specific project or market
