Cambridge IGCSE · 0450

Business Studies

External influences — Topic 6

Name: ____________________Date: September 28, 2026
  1. 1.

    A group of people living near a new factory, concerned about noise and traffic, is an example of which stakeholder group? A Shareholders B The local community C Suppliers D Competitors

    [1 mark] · no calculator
  2. 2.

    Explain one way in which the interests of a company's shareholders might conflict with the interests of its employees.

    [2 marks] · no calculator
  3. 3.

    A government raises indirect tax on sugary drinks. Explain the likely effect of this on a business that produces sugary drinks.

    [2 marks] · no calculator
  4. 4.

    Explain one likely effect on a labour-intensive clothing manufacturer if the government significantly raises the national minimum wage.

    [2 marks] · no calculator
  5. 5.

    Explain one reason why a business might choose to act ethically (for example, by paying fair prices to suppliers) even if this reduces its short-term profit.

    [2 marks] · no calculator
  6. 6.

    A car manufacturer in Country X buys steel produced in Country Y. From Country X's perspective, this steel is: A An export B A tariff C An import D A subsidy

    [1 mark] · no calculator
  7. 7.

    Explain one benefit to a small domestic business of being able to export its products to other countries.

    [2 marks] · no calculator
  8. 8.

    A domestic shoe manufacturer faces increasing competition from cheaper imported shoes after the government removes a tariff on imports. Analyse two ways this could affect the domestic manufacturer.

    [3 marks] · no calculator
  9. 9.

    Discuss whether a growing domestic business should expand by selling into overseas markets, given that this exposes it to new competition and costs, as well as new customers.

    [4 marks] · no calculator