Business 7115 · O Level · Economic issues

Economic issues — practice question

(a)[8]

The Government of country X has recently raised interest rates. Identify and explain two effects that an increase in interest rates could have on FF.

(b)[12]

A multinational food company is manufacturing and marketing its products in country X (see Appendix 1). Consider the benefits and drawbacks to FF of this multinational operating in country X. Do you think it is beneficial to FF? 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: Higher cost of taking out a new bank loan

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