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Edexcel IGCSE Business Studies 1.5 Business & the international economy Question Bank

Practise global business decisions, from globalisation and multinationals to exchange-rate calculations and impacts on trade costs.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • calculate prices or salaries in another currency using the given exchange rate
  • explain globalisation or multinational growth using business and country impacts
  • analyse how currency changes affect import costs, export prices and competitiveness

Covered syllabus points

1.5.1 Globalisation1.5.2 Importance and growth of multinationals1.5.3 Exchange rate calculation1.5.4 Impact of exchange rate changes

1.5 Business and the international economy question 1

[Maximum number: 1]

In 1985 Emirates started its airline business with just two aircraft. It is now a well-known airline with over 265 aircraft flying to over 180 destinations around the world.

Emirates has won many awards for service and reliability. Until 2016 passengers rated Emirates the leading airline to travel with. However, in 2017 its rating dropped from first to fourth.

Define the term globalisation.

1.5 Business and the international economy question 2

[Maximum number: 3]

Mahindra \& Mahindra Limited (M\&M) is an Indian multinational vehicle manufacturing corporation with its headquarters in Mumbai, India. It is one of the largest manufacturers of cars, vans and tractors in the world.

M\&M started in 1945 and has prospered for over 75 years with the aim of 'Rising through crisis'. In the 1970s with the oil crisis that sent the cost of petrol rising, it adapted its tractor diesel engines to be used in its cars and vans.

M\&M is committed to ensuring that it protects the environment. In 2020 it planted 1.32 million trees across India. It supports schools for disadvantaged children and teenagers.

Figure 1 Maslow's Hierarchy of Needs

Figure 1

Figure 1

Explain one advantage of becoming a multinational business.

1.5 Business and the international economy question 3

[Maximum number: 2]

Ocean Vibes is a boat tour business located in two tourists resorts in Portugal. During the tours, it collects wildlife research. The idea came from two young scientists, Alfredo and Pedro, who share a passion for the environment, boats and science. Ocean Vibes employs boat tour guides and a sales team in each of the two resorts.

The main goal of Ocean Vibes is to connect tourism with science. It offers dolphin and bird-watching tours to tourists and uses the boat tours to collect research data on the wildlife. Its tour guides are knowledgeable, passionate and respectful of the environment.

Customers can book the boat tours online or in the tourist resorts. They are encouraged to leave reviews on Ocean Vibes' website.
Every month Ocean Vibes provides a boat tour for students and researchers who wish to study the wildlife.

There are many other businesses offering boat tours in Portugal which makes competing in the industry a challenge.

The price of an Ocean Vibes boat tour is €60 (euros) per person.
The exchange rate is € 1=£ 0.95 (UK pounds)

Calculate the price of a boat tour in UK pounds (£). You are advised to show your working.
(2)
£

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