Question 5
[Maximum number: 12]
Refer to lines 70-75. Evaluate the most likely impact on IPA of the fiscal and monetary policy changes.
CAIE A-Level Business 6.1.2 Economic Influences
Practise analysing fiscal, monetary, exchange-rate and macroeconomic changes through costs, demand and competitiveness and evaluating the net impact on the business described.
How this is tested
- trace interest, tax, spending, inflation or growth changes to demand, finance cost or operating cost
- analyse exchange-rate appreciation or depreciation through import cost and export competitiveness
- evaluate the likely net effect using the firm's trade exposure, elasticity, timing and response options