(a)[8]
Explain the impact of these changes on GJ. • Depreciation in the exchange rate of country Z • Increase in income tax in country Z
(b)[12]
Consider how the three changes below might influence GJ. Which change is likely to have the biggest effect on GJ’s profit? Justify your answer. • All jewellery packaging must state in which country the product has been made • Country Z has entered a boom phase of the business cycle • A higher percentage of people in country Z use mobile (cell) phones