Business 0450 · IGCSE · Business and the international economy

Business and the international economy — practice question

Rafael’s business works within an international setting and is looking at expansion.
(a(i))[4]

Identify and explain what effect the following could have on Rafael’s business. An import quota on motorbikes:

(a(ii))[4]

Identify and explain what effect the following could have on Rafael’s business. An appreciation of country X’s currency:

(b)[12]

Rafael plans to open another showroom in Main City. He has two choices set out in Appendix 3. Assess the benefits and drawbacks of each option for RRM. Recommend which site Rafael ought to select. Support your answer. Option A (near Main City): Option B (in the centre of Main City): Recommendation:

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “An import quota on motorbikes results in a shortage of imported motorbikes” …

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