IGCSE Bus Unit 6 Knowledge Check Quiz 1

Which of the following is not an example of a legal control used by governments to limit the negative effects of business activity on the environment?

• Issuing fines to businesses who ignore reduction in pollution targets

• Not permitting businesses to set up in certain areas

• Allowing businesses to dispose of waste how they wish

• Setting standards on the use of renewable energy sources

An increase in import tariffs could benefit local businesses as demand for their products could increase while sales for businesses selling imported goods could decrease.

• True

• False

It is argued that the growth of globalisation is at the cost of damage to the environment.

• True

• False

Businesses shouldn’t have environmentally friendly and ethical business practices if they want to stop pressure groups from opposing their business activities.

• True

• False

Importers will benefit from the appreciation of their currency, while depreciation in their currency will benefit exporters as it should increase demand for them.

• True

• False

A group of countries trading with each other that agree to lower trade barriers between them is called?

• Trade Bloc

• Multinational company

• Home country

• Host country

Where a multinational company first sets up its operations is called?

• Trade Bloc

• Multinational company

• Home country

• Host country

The foreign country where a multinational company sets up its operations is called?

• Trade Bloc

• Multinational company

• Home country

• Host country

A large company that has business operations in lots of countries is called?

• Trade Bloc

• Multinational company

• Home country

• Host country

Businesses have to weigh up the external costs and external benefits when making business decisions. What is this process called?

• Cost benefit analysis

• Break-even analysis

• Ratio analysis

• Positive negative analysis