1. (a) What is an export?
Select one answer - Edexcel - GCSE Business - Question 1 - 2016 - Paper 1
Question 1
1. (a) What is an export?
Select one answer.
☐ A good or service bought from another country
☐ B The value of one currency in terms of another
☐ C A good or serv... show full transcript
Worked Solution & Example Answer:1. (a) What is an export?
Select one answer - Edexcel - GCSE Business - Question 1 - 2016 - Paper 1
Step 1
What is an export?
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Answer
An export is defined as a good or service sold to another country. This is represented by option C.
Step 2
Identify one factor that could lead to an increase in the demand for a good.
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Answer
One factor that could lead to an increase in demand for a good is a decrease in its price. When prices drop, consumers are more likely to purchase the good, leading to increased demand.
Step 3
Explain one way an increase in interest rates might affect a business.
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Answer
An increase in interest rates can affect a business by increasing the cost of borrowing. When interest rates rise, businesses may face higher loan repayments. This can lead to reduced cash flow, which may constrain their ability to invest in growth opportunities or maintain operations.
