CAIE IGCSE Business Studies 6.2.1 importance of globalisation
Practise globalisation questions by defining the process, explaining import controls and applying opportunities or threats to a case.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Define globalisation as countries connecting through trade in goods and services.
- Identify import-control reasons such as protecting jobs, infant industries or the trade balance.
- Explain how tariffs or quotas raise import costs or limit supplies for the business.
6.2.1—The importance of globalisation question 1
[Maximum number: 2]
DLT manufactures cups and plates in country X. Its factory uses flow production and has 75 employees. The Human Resources Director is aware that there are many legal controls over employment. DLT exports 30% of its products to country Y where it benefits from lower rates of taxation and no import quotas. DLT's Managing Director is considering relocating its factory to another part of country X to meet the increased demand for its exports.
Define 'import quota'.
Award 2 marks for a full definition. Award 1 mark for a partial definition.
Physical limit on the number/amount of goods that can be imported/allowed into a country [2]
OR
Restriction on the quantity of a product than can be imported [2]
Partial definition e.g. limit on number/quantity of goods [1] OR limit on imports [1]
To award both marks the answer must include the idea of limit on number/quantity of goods and the idea of imported/into the country.
Do not award:
- answers which confuse the term with a tariff.
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