2nd/Final Quarter Examination,

December, 2020

Year: 8 (A & B)

Total Marks: 85(written) + 15(on assignment)

=100

28th December,2020
A. Choose the best option for the following questions:

0 1 Which of the following best describes the term globalisation?

A Goods purchased from overseas by UK businesses and consumers

B The process by which the world is increasingly becoming one market

C When a business produces goods in more than one country

D When goods and services are made in one country and sold in another

0 2 ASEAN (Association of South East Asian Nations) is an example of which of the following?

A Tariff

B Import

C Trade bloc

D Export

0 3 Imports are a feature of global markets. Which of the following is an example of a UK import?

A A lamp made in China is sold to UK customers

B A vase made in Spain is sold to customers in Spain

C A table made in the UK is sold to customers in Germany

D A kettle made in the UK is sold to UK customers

0 4 Exchange rates are important to businesses that trade globally. Which of the following is true if a
country’s currency becomes stronger?

A Bad for business that exports as goods are more expensive overseas

B Bad for consumers as prices of imports will increase

C Bad for business that exports as goods are less expensive overseas

D Bad for business that imports raw materials as prices will increase
0 5 A UK business extends its delivery service to include overseas markets. This is an example of
changing which element of the marketing mix to compete internationally?

A Product

B Price

C Promotion

D Place

0 6 A UK business might relocate operations abroad in order to:

A Benefit from higher labour costs

B Avoid import tariffs

C Build a factory on more expensive land

D Avoid bad publicity created through the closure of UK factories

0 7 Which of the following is a benefit to UK businesses of globalisation?

A Being vulnerable to the world economic climate

B Increased competition can lead to business failure

C Access to new and bigger markets

D Multinational firms are increasingly powerful

0 8 Which of the following best describes the term imports?

A Goods produced by UK businesses and purchased by other UK businesses

B Goods purchased from overseas by UK businesses and consumers

C Goods produced by a business in one country and sold in another

D Goods purchased by UK businesses from other UK producers

0 9 Which of the following best describes the term multinationals?

A Goods made in one country and then sold to a different country

B Businesses that have operations in more than one country

C Goods or services that are bought from overseas

D Businesses that only have operations in one country

1 0 A multinational business reduces the amount charged for products sold in a country with lower
than average income levels. Which element of the marketing mix has been changed to help the
business compete internationally?

A Product

B Price

C Promotion

D Place

1 1 Which of the following is true in relation to tariffs?

A Buyers might be encouraged to purchase home produced goods instead of imports if a tariff is
imposed on imported goods

B Tariffs restrict the number of imports a country can receive in a particular time period

C Tariffs discourage trade between countries that are members of a trade bloc

D When a tariff is imposed on imported goods they will become cheaper in that market

12 Which two of the following are drawbacks to independent UK businesses of globalisation?

A Increased competition from overseas businesses

B Costs can be reduced through the use of cheaper labour

C Global brands can dominate markets

D Opportunity to increase sales

E Access to cheaper raw materials

1 3 Which two of the following businesses are acting as exporters?

A A UK retailer buys goods from overseas suppliers to sell in the UK

B A UK supermarket buys milk from UK farmers to sell in its UK stores

C A UK based car manufacturer sell cars to the Japanese market

D A UK confectionery business buys cocoa from abroad to produce chocolate bars in the UK

E A UK mountain bike producer sells its products to the USA

B. List up to four advantages of setting up a new business using an established franchise (one mark
for each different, valid item listed)

1._______________________________________________________________

2._______________________________________________________________

3._______________________________________________________________

4._______________________________________________________________

C. Outline three potential disadvantages for someone who decides to invest in a franchise rather than
starting a standalone business (one mark for each valid issue)

1.________________________________________________________________

2.________________________________________________________________

3.________________________________________________________________

4.________________________________________________________________

D.List up to five examples of franchise businesses operating on high streets or retail parks (one mark
for each valid example)

1._________________

2.________________

3._________________

4._________________

5._________________

E.Write a short, accurate definition for each of the following key terms. (2 marks for each good quality
definition)

1. Define: franchise

__________________________________________________________________________________

2. Define: franchisor

__________________________________________________________________________________
3. Define: franchisee
______________________________________________________________________________
______________________________________________________________________________
______________

F. Why is opening a franchise often considered lower risk for an entrepreneur than setting up a new
business? Write answer in two or three sentences.

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

G. Choose the best option for the following questions:

1. Which of the following is NOT an example of a franchise opportunity

listed in this article?

a. Subway
b. McDonald's
c. Dunkin' Donuts
d. Apple

2. Franchisor offers the franchisee License to trade under brand name.

a. True b. False

3. Franchisor may make some profit on merchandise supplied to

franchisee.

a. True b. False

4. Which is the following fee that does not include in franchise business?

a. Start-up fee b. Marketing costs c. Service fee

H. Choose the correct answer for following questions:

1.

2.

3.

4.
5.

6.

7.

8.
 I. Match the following statements with the right side ones:

1. Buying clothes from abroad is a) This is a type of advertising

called
2. A private limited company can b) exporting
raise finance by
3. A business may use posters to c) a willingness to work
inform clients of offers
4. Selling products to another d) import
country is called
5. The most important feature of an e) the most likely reason to meet
enterprise the cultural differences
6. A business prints its factsheets in f) selling shares to friends and
other languages family

I. Decide whether the following statements are True or False:

1. Needs are what we need to survive, while wants are things we just want.
2. A job means something you do for free.
3. Providing a guitar lesson considered as a service.
4. MissMe jeans can be categorized as a need.
5. Car can be categorized as want.
6. A basic assumption of economics is that wants are unlimited.
 J. Draw a table and show the summary of the effects of changing exchange
rates:
Exchange Rate Price of Exports Demand for Exports Price of Imports Demand for Imports

K. Answer the following questions:

1.

2.

L. Name 8 types of business stakeholders:

 a) _______________________
b) _______________________
c) _______________________
d) _______________________
e) _______________________
f) _______________________
g) _______________________
h) _______________________

N. Choose the best option for following questions:

1.

2.
3.

4.
 5.

N. Which three stakeholder groups do you think are the most

important for?

(a) Your school

(b) Your nearest sweetshop or grocers.