Business 0450 · IGCSE · Business and the international economy

Business and the international economy — practice question

(a)[8]

Explain two ways an appreciation in the exchange rate of country X could influence AF.

(b)[12]

AF could increase output in its factory in two ways. Which would be the best option to use? Justify your answer. • Investing in new technology • Buying more of their existing equipment

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Cheaper imports allow prices to be cut and competitiveness to improve” …

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