Page 314 - Cambridge IGCSE Business Studies
P. 314
Cambridge IGCSE Business Studies Section 6 External influences on business activity
a What is meant by ‘balance of payments’? [2]
b List two economic objectives that the government
of Country Z may have. [2]
c Identify and explain two features of Country Z’s
economy, which is in a growth stage.
Feature 1:
Feature 2:
[4]
d Identify and explain the effect of a decrease in
corporation tax and interest rates in attracting new
companies to invest in Country Z.
Effect of decrease in corporation tax rate:
Effect of decrease in interest rate:
[6]
e Explain the effect of increasing import tariffs on
importers in Country Z. Will this be helpful to local
businesses? Justify your answer. [6]
Total available marks 40
312
