Business 7115 · O Level · Business and the international economy
Business and the international economy — practice question
NSL operates in country X. Its output includes food products such as bread and breakfast cereals. In its factory, NSL relies on lean production. Quality control matters to NSL. The business brings in $15\%$ of its raw materials from abroad. Movements in country X’s exchange rate may influence firms that import raw materials. NSL’s Marketing Manager understands that the business ought to adapt to shifts in consumer spending patterns. She also knows that market research can support business decision-making.
(a)[2]
Identify one effect on businesses which import raw materials of each of the following changes in country X’s exchange rate.
Depreciation:
Appreciation:
(b)[2]
Identify two reasons why consumer spending patterns may alter.
(c)[4]
Outline two reasons why it is important for NSL to maintain quality.
(d)[6]
Explain two benefits to NSL of using lean production.
(e)[6]
Explain two market-research methods a business could use to help make business decisions. Which method is likely to be the best for a manufacturing business to use? 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: “Depreciation: imports cost more / become dearer” …