Lesson 2.1.3a

2.1.3a Imports, exports, changing locations and multinationals Quiz: Pearson Edexcel Business, Unit 6

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.1.3a, Imports, exports, changing locations and multinationals: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 6: Growing the business, written with Revision Ninja.

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The 20 questions

  1. An import is a good or service that a business:

    • sells to customers in another country
    • buys from a supplier in another country
    • makes in a factory in its home country only
    • stores in a warehouse for a full year

  2. An export is a good or service that is:

    • sold to customers in another country
    • made in a factory on home soil only
    • lent to another bank in a foreign currency
    • bought from a supplier in another country

  3. A multinational company is one that:

    • offers more than one product line
    • sells only within a single town
    • operates in more than one country
    • is owned by more than one government

  4. Which is an advantage of importing goods instead of making them?

    • No need for any transport or storage
    • Lower costs if the overseas supplier is cheaper
    • No competition from overseas firms
    • Guaranteed higher quality in every case

  5. Which is a disadvantage of importing for a country's domestic producers?

    • Imports always reduce the number of jobs in the country
    • Domestic firms gain access to every overseas market
    • Cheaper overseas goods may take sales away from home firms
    • Exchange rates have no effect on the cost of imports

  6. Which is a benefit to a business of exporting?

    • Guaranteed profits in every year that the firm trades abroad
    • No need to comply with the laws of the overseas country
    • Access to larger markets and possibly higher sales
    • Removal of all shipping and insurance costs for the firm

  7. A business moves its call centre to another country to save wage costs. This is an example of:

    • importing services from the overseas call centre
    • changing business location
    • a takeover of the overseas call centre company
    • exporting goods to customers in the new country

  8. A UK firm sells £2m of goods abroad and buys £1.5m of materials from overseas. What is its trade balance from these figures?

    • A £3.5m deficit
    • A £0.5m deficit
    • A £3.5m surplus
    • A £0.5m surplus

  9. A clothing firm sources garments from a supplier in Vietnam because it is cheaper than UK production. Which term best describes this?

    • Exporting
    • Merging
    • Importing
    • Tariffing

  10. A multinational sets up a factory in a second country close to its customers. What is the most likely reason?

    • To avoid all local tax and employment law in the country
    • To stop competitors from trading in that country at all
    • To reduce transport costs and serve nearby customers
    • To reduce its home market sales to zero over five years

  11. A business exports goods to Japan. Which factor is most important when setting its price for the new market?

    • The currency exchange rate and the transport costs
    • The colour of the company logo on the export packaging
    • The local sports results of the week in the target city
    • The business's home telephone number and office address

  12. A UK shop switches from selling mostly imported toys to making its own. What is this?

    • A change from production to a merger
    • A change from importing to producing locally
    • A change from one tariff to another
    • A change from exporting to importing

  13. A firm's main export market becomes more expensive for overseas buyers because the pound strengthens. What is the likely effect on its overseas sales?

    • Sales rise automatically because the pound is strong
    • No effect, because prices are fixed in pounds only
    • Overseas customers pay less, which raises demand
    • Overseas customers pay more, which may reduce demand

  14. A business that imports cheap components finds a new tariff added to them. What is the most likely effect?

    • The components become cheaper to buy
    • The components become more expensive to buy
    • The business stops buying from overseas suppliers forever
    • The tariff reduces the price of the business's exports

  15. A business's sales overseas are growing quickly. Which is the best reason to consider changing its location?

    • To be closer to customers and reduce delivery times
    • To stop paying corporation tax in its home country entirely
    • To avoid any contact with its customers in future markets
    • To avoid paying wages to any staff in the new location

  16. An online shop sells to customers in twelve countries. Which term describes this type of international trade?

    • Exporting
    • Merging
    • Importing
    • Floating

  17. Which situation best illustrates a multinational?

    • A café selling imported coffee beans only
    • A car brand with factories in four different countries
    • A single-site bank operating in one country
    • A village shop selling only to local residents

  18. Which is the strongest argument against a firm moving all of its production abroad?

    • It removes all competition from the market it sells in
    • It may lose domestic jobs and damage local reputation
    • It always increases profit with no drawbacks at all for the firm
    • It makes the firm exempt from all of the local laws it follows

  19. A UK business imports parts costing £40,000. The pound then falls by about 10% against the currency it pays in. What happens to the sterling cost of those imports?

    • They fall, because the pound buys more foreign currency
    • They stay exactly the same in pounds
    • They double, because every import now carries a tariff
    • They rise, because the pound buys fewer units of foreign currency

  20. A firm builds a factory in a low-wage country but sells mostly in its home market. What is the main risk?

    • Wage savings are always larger than all other costs
    • Home customers will automatically buy more of its goods
    • Transport and currency costs may cancel out the wage savings
    • No tax applies to any goods made abroad

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