Business 7115 · O Level · Business and the international economy

Business and the international economy — practice question

(a(i))[4]

Identify and explain how the following could affect Rafael's business. An import quota on motorbikes.

(a(ii))[4]

Identify and explain how the following could affect Rafael's business. An appreciation of country X’s currency.

(b)[12]

Rafael plans to open another showroom in Main City. Appendix 3 sets out two choices. Consider the strengths and weaknesses of each option for RRM. Recommend which location 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: Import quota on motorbikes - a fixed limit on the number that may be imported

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