1|Page --- WGU D080---
WGU D080 Managing in a Global Business Environment OA Exam
2026 Latest Update | Practice Questions & Answers PDF
1. 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?
A) Negotiation training
B) Operational training
C) Repatriation training
D) Cultural training
Correct Answer: D) Cultural training Cultural training prepares expatriates to understand and adapt to local customs,
communication styles, and business practices, which is essential for successful international assignments and reducing culture
shock.
2. What happens to consumer surplus when tariffs and quotas are discontinued?
A) It decreases
B) It remains unchanged
C) It increases
,2|Page --- WGU D080---
D) It becomes negative
Correct Answer: C) It increases Removing trade barriers like tariffs and quotas lowers prices for consumers, allowing them to
purchase more goods at lower costs, which directly increases consumer surplus by expanding the gap between what consumers
are willing to pay and what they actually pay.
3. Which type of tariff is put in place to specifically ensure that domestic industries are given an advantage?
A) Revenue tariff
B) Protective tariff
C) Ad valorem tariff
D) Specific tariff
Correct Answer: B) Protective tariff Protective tariffs are designed specifically to shield domestic industries from foreign
competition by making imported goods more expensive, thereby giving local producers a competitive advantage in the domestic
market.
4. What is a benefit of implementing a system of free trade?
A) Increased tariffs on imported goods
,3|Page --- WGU D080---
B) Reduced tariffs resulting in lower costs of imported raw materials
C) Higher prices for consumers
D) Decreased competition for domestic firms
Correct Answer: B) Reduced tariffs resulting in lower costs of imported raw materials Free trade reduces or eliminates tariffs,
which lowers the cost of imported raw materials for manufacturers, enabling them to produce goods more cheaply and remain
competitive in global markets.
5. How are free trade agreements handled differently than treaties in the United States?
A) Both must be approved by the Senate only
B) Treaties must be approved by the Senate, whereas free trade agreements must pass both houses of Congress
C) Free trade agreements require only presidential approval
D) Treaties require approval from the Supreme Court
Correct Answer: B) Treaties must be approved by the Senate, whereas free trade agreements must pass both houses of
Congress The U.S. Constitution requires treaties to receive Senate approval with a two-thirds majority, while free trade
agreements are considered congressional-executive agreements and must pass both the House and Senate through regular
legislative processes.
, 4|Page --- WGU D080---
6. An airplane manufacturer outsources the manufacture of some of its parts and sub-assemblies. They are then returned to the
manufacturer's main plant for final assembly. Which business concept does this describe?
A) Supply chain management
B) Economies of scope
C) Value chain
D) Vertical integration
Correct Answer: C) Value chain The value chain represents the full range of activities required to bring a product from
conception to final delivery, and outsourcing parts while performing final assembly at headquarters illustrates how companies
optimize each stage of production across borders.
7. 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?
A) Trade deficit
B) Trade surplus
C) Balanced trade
D) Comparative advantage
WGU D080 Managing in a Global Business Environment OA Exam
2026 Latest Update | Practice Questions & Answers PDF
1. 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?
A) Negotiation training
B) Operational training
C) Repatriation training
D) Cultural training
Correct Answer: D) Cultural training Cultural training prepares expatriates to understand and adapt to local customs,
communication styles, and business practices, which is essential for successful international assignments and reducing culture
shock.
2. What happens to consumer surplus when tariffs and quotas are discontinued?
A) It decreases
B) It remains unchanged
C) It increases
,2|Page --- WGU D080---
D) It becomes negative
Correct Answer: C) It increases Removing trade barriers like tariffs and quotas lowers prices for consumers, allowing them to
purchase more goods at lower costs, which directly increases consumer surplus by expanding the gap between what consumers
are willing to pay and what they actually pay.
3. Which type of tariff is put in place to specifically ensure that domestic industries are given an advantage?
A) Revenue tariff
B) Protective tariff
C) Ad valorem tariff
D) Specific tariff
Correct Answer: B) Protective tariff Protective tariffs are designed specifically to shield domestic industries from foreign
competition by making imported goods more expensive, thereby giving local producers a competitive advantage in the domestic
market.
4. What is a benefit of implementing a system of free trade?
A) Increased tariffs on imported goods
,3|Page --- WGU D080---
B) Reduced tariffs resulting in lower costs of imported raw materials
C) Higher prices for consumers
D) Decreased competition for domestic firms
Correct Answer: B) Reduced tariffs resulting in lower costs of imported raw materials Free trade reduces or eliminates tariffs,
which lowers the cost of imported raw materials for manufacturers, enabling them to produce goods more cheaply and remain
competitive in global markets.
5. How are free trade agreements handled differently than treaties in the United States?
A) Both must be approved by the Senate only
B) Treaties must be approved by the Senate, whereas free trade agreements must pass both houses of Congress
C) Free trade agreements require only presidential approval
D) Treaties require approval from the Supreme Court
Correct Answer: B) Treaties must be approved by the Senate, whereas free trade agreements must pass both houses of
Congress The U.S. Constitution requires treaties to receive Senate approval with a two-thirds majority, while free trade
agreements are considered congressional-executive agreements and must pass both the House and Senate through regular
legislative processes.
, 4|Page --- WGU D080---
6. An airplane manufacturer outsources the manufacture of some of its parts and sub-assemblies. They are then returned to the
manufacturer's main plant for final assembly. Which business concept does this describe?
A) Supply chain management
B) Economies of scope
C) Value chain
D) Vertical integration
Correct Answer: C) Value chain The value chain represents the full range of activities required to bring a product from
conception to final delivery, and outsourcing parts while performing final assembly at headquarters illustrates how companies
optimize each stage of production across borders.
7. 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?
A) Trade deficit
B) Trade surplus
C) Balanced trade
D) Comparative advantage
