WGU D080 MANAGING IN A GLOBAL BUSINESS ENVIRONMENT OA FINAL EXAM
Complete Practice Test - 200 Questions with Correct Answers & Explanations
Based on WGU D080 Course Content, Global Business Strategies, and International Trade
Theories
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SECTION 1: GLOBALIZATION & INTERNATIONAL TRADE THEORIES (Questions 1-35)
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Question 1
A country produces goods more efficiently than all other countries in the same industry. Which
type of advantage does this country have?
A) Comparative advantage
B) Absolute advantage
C) Competitive advantage
D) Relative advantage
Answer: B
Explanation: Absolute advantage occurs when a country can produce a good more efficiently
(using fewer resources) than all other countries . This is distinct from comparative advantage,
which focuses on opportunity cost differences.
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Question 2
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?
A) Resource endowment
B) Absolute advantage
C) Skill specialization
D) Factor proportions
Answer: C
Explanation: Skill specialization allows countries to focus on industries where they have
developed particular expertise . This creates mutually beneficial trade even when both
countries could potentially produce both goods.
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Question 3
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?
A) Explicit cost
B) Implicit cost
,C) Sunk cost
D) Opportunity cost
Answer: D
Explanation: Opportunity cost represents what is given up to pursue a particular action . The
farmer should compare the profit from corn against the profit from soy to determine the most
beneficial use of land and labor.
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Question 4
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?
A) Economies of scope
B) Economies of scale
C) Learning curve effects
D) Mass customization
Answer: B
Explanation: Economies of scale refer to cost advantages gained when production increases, as
fixed costs are spread over more units . This results in lower per-unit costs and increased
competitiveness.
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, Question 5
What is globalization?
A) The process of reducing international trade
B) International integration arising from the exchange of world views, products, ideas, and other
aspects of culture
C) The dominance of one country's economy over others
D) The elimination of all trade barriers
Answer: B
Explanation: Globalization is defined as international integration arising from the exchange of
world views, products, ideas, and other aspects of culture . It encompasses economic, political,
and cultural dimensions.
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Question 6
What is Cultural Globalization?
A) The spread of American culture only
B) The transmission of ideas, meanings, and values around the world that extends and
intensifies social relations
C) The elimination of all cultural differences
D) The dominance of Western media
Complete Practice Test - 200 Questions with Correct Answers & Explanations
Based on WGU D080 Course Content, Global Business Strategies, and International Trade
Theories
---
SECTION 1: GLOBALIZATION & INTERNATIONAL TRADE THEORIES (Questions 1-35)
---
Question 1
A country produces goods more efficiently than all other countries in the same industry. Which
type of advantage does this country have?
A) Comparative advantage
B) Absolute advantage
C) Competitive advantage
D) Relative advantage
Answer: B
Explanation: Absolute advantage occurs when a country can produce a good more efficiently
(using fewer resources) than all other countries . This is distinct from comparative advantage,
which focuses on opportunity cost differences.
,---
Question 2
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?
A) Resource endowment
B) Absolute advantage
C) Skill specialization
D) Factor proportions
Answer: C
Explanation: Skill specialization allows countries to focus on industries where they have
developed particular expertise . This creates mutually beneficial trade even when both
countries could potentially produce both goods.
---
Question 3
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?
A) Explicit cost
B) Implicit cost
,C) Sunk cost
D) Opportunity cost
Answer: D
Explanation: Opportunity cost represents what is given up to pursue a particular action . The
farmer should compare the profit from corn against the profit from soy to determine the most
beneficial use of land and labor.
---
Question 4
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?
A) Economies of scope
B) Economies of scale
C) Learning curve effects
D) Mass customization
Answer: B
Explanation: Economies of scale refer to cost advantages gained when production increases, as
fixed costs are spread over more units . This results in lower per-unit costs and increased
competitiveness.
---
, Question 5
What is globalization?
A) The process of reducing international trade
B) International integration arising from the exchange of world views, products, ideas, and other
aspects of culture
C) The dominance of one country's economy over others
D) The elimination of all trade barriers
Answer: B
Explanation: Globalization is defined as international integration arising from the exchange of
world views, products, ideas, and other aspects of culture . It encompasses economic, political,
and cultural dimensions.
---
Question 6
What is Cultural Globalization?
A) The spread of American culture only
B) The transmission of ideas, meanings, and values around the world that extends and
intensifies social relations
C) The elimination of all cultural differences
D) The dominance of Western media
