Business 0450 · IGCSE · Business and the international economy
Business and the international economy — practice question
UDig is a major mining business in the private sector. It provides firms in country B with 30% of the coal they require. UDig currently operates eight mines, but it intends to shut two of them, and this would put 1800 employees at risk of redundancy. The Managing Director stated: ‘I blame the rise in value of country B’s exchange rate and the new legal restrictions, including those intended to protect the environment. The Government should assist UDig so that these mines stay open.’
(a)[2]
What does the term ‘private sector’ mean?
(b)[2]
What does the term ‘redundancy’ mean?
(c)[4]
Identify and explain two ways that an appreciation of country B’s exchange rate could influence UDig.
(d)[6]
Identify and explain two ways that legal restrictions could influence UDig.
(e)[6]
The Managing Director believes ‘the Government should help UDig keep these mines open’. Do you agree? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Business activities owned by individuals” …