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WGU D080 MANAGING IN A GLOBAL BUSINESS ENVIRONMENT OA
EXAM 3 LATEST VERSIONS AND STUDY GUIDE ALL 300 QUESTIONS
AND CORRECT DETAILED SOLUTIONS LATEST 2024-2025
WGU D080 MANAGING IN A GLOBAL BUSINESS ENVIRONMENT OA EXAM A
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 - ANSWER-Cultural training
Q: What happens to consumer surplus when tariffs and quotas are discontinued? - ANSWER-
They increase
Q: Which type of tariff is put in place to specifically ensure that domestic industries are given an
advantage? - ANSWER-Protective
Q: What is a benefit of implementing a system of free trade? - ANSWER-Reduced tariffs would
result in lower costs of imported raw materials.
Q: How are free trade agreements handled differently than treaties in the United States? -
ANSWER-Treaties must be approved by the Senate, whereas a free trade agreement must pass
both houses of Congress.
Q: Treaties must be approved by the Senate, whereas a free trade agreement must pass both
houses of Congress. - ANSWER-Tariffs
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,Page 2 of 108
Q: 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. - ANSWER-Value
chain
Q: 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? - ANSWER-Trade surplus
Q: 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? - ANSWER-Government
subsidies
Q: 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? - ANSWER-Opportunity
Q: A country produces goods more efficiently than all other countries in the same industry.
Which type of advantage does this country have? - ANSWER-Absolute
Q: 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? - ANSWER-Skill
specialization
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Q: 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? - ANSWER-Economies of scale
Q: A country with a new economy implemented trade protectionism in relation to countries
with more developed economies.
Why did the country take this action? - ANSWER-To restrict international economic trade
Q: How do anti dumping laws protect a domestic market? - ANSWER-They prevent foreign
companies from selling goods and services at or below cost.
Q: How do Congress and the Department of Agriculture use quotas to their advantage? -
ANSWER-To increase domestic prices to specific levels to make products profitable
Q: Which strategy should a government use to offset the cost of manufacturing domestically? -
ANSWER-Subsidies
Q: Which type of globalization refers to the international movement of goods, capital, and
services? - ANSWER-Economic
Q: 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? - ANSWER-
Profitability
Q: 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.
Which type of market entry is the CEO using? - ANSWER-Direct investment
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, Page 4 of 108
Q: A CEO seeks to better use the economies of scale and scope of production to increase the
international company's profits.
Which type of globalization driver is the CEO seeking to use? - ANSWER-Cost
Q: A CEO is discussing an expansion of production of a company's highly perishable dairy line in
a country that can offer low labor costs and good internet connections. The country has no
highways, and roads are poorly maintained.
Which challenge to international business expansion do the road conditions present? -
ANSWER-Infrastructure
Q: Which argument is used by critics who wish to discourage movement towards globalization?
- ANSWER-It increases the wealth of the rich rather than the poor
Q: Anarchism - ANSWER-Individuals control political activities, and the government has no
control over these activities
Q: Totalitarianism - ANSWER-A centralized government creates oppressive policies based on
ideas from powerful leadership.
Q: Direct democracy - ANSWER-The government provides a method of voting for the people of
a country, not for elected officials.
Q: What is a free trade zone? - ANSWER-A geographic region in which a county will reduce
restrictions that might prevent or reduce trade
Q: Which term describes a government giving a tax break to a producer to increase their global
competitiveness? - ANSWER-Subsidies
Q: Industrialized - ANSWER-Prevalent formation of new markets with possibility of saturation
4
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