WGU D080 MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT EXAM TEST BANK Q’s & A’s LATEST
2025/2026
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.
,WGU D080 MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT EXAM TEST BANK Q’s & A’s LATEST
2025/2026
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
Answers: 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?
,WGU D080 MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT EXAM TEST BANK Q’s & A’s LATEST
2025/2026
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
C. License a brand name
D. Engage in export-only partnerships
, WGU D080 MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT EXAM TEST BANK Q’s & A’s LATEST
2025/2026
Answer: B — Joint ventures combine resources for a shared goal while
maintaining separate ownership.
8. Select all that apply: Common risks of international business
include
☐ A. Political instability
☐ B. Currency fluctuations
☐ C. Cultural misunderstandings
☐ D. Domestic unemployment
Answers: A, B, C — Global operations face political, financial, and cultural
risks.
9. A company that adapts its marketing to local languages and
customs follows a:
A. Global standardization strategy
B. Multidomestic strategy
C. Centralized structure
D. Export-only model
Answer: B — Multidomestic strategies tailor operations to local needs.
ENVIRONMENT EXAM TEST BANK Q’s & A’s LATEST
2025/2026
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.
,WGU D080 MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT EXAM TEST BANK Q’s & A’s LATEST
2025/2026
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
Answers: 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?
,WGU D080 MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT EXAM TEST BANK Q’s & A’s LATEST
2025/2026
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
C. License a brand name
D. Engage in export-only partnerships
, WGU D080 MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT EXAM TEST BANK Q’s & A’s LATEST
2025/2026
Answer: B — Joint ventures combine resources for a shared goal while
maintaining separate ownership.
8. Select all that apply: Common risks of international business
include
☐ A. Political instability
☐ B. Currency fluctuations
☐ C. Cultural misunderstandings
☐ D. Domestic unemployment
Answers: A, B, C — Global operations face political, financial, and cultural
risks.
9. A company that adapts its marketing to local languages and
customs follows a:
A. Global standardization strategy
B. Multidomestic strategy
C. Centralized structure
D. Export-only model
Answer: B — Multidomestic strategies tailor operations to local needs.
