Lesson 2.1.3c

2.1.3c How businesses compete internationally Quiz: Pearson Edexcel Business, Unit 6

20 questions

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Lesson 2.1.3c, How businesses compete internationally: 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. E-commerce means:

    • attending a trade fair held in a foreign city
    • transferring loans between banks
    • selling goods door to door only
    • buying and selling goods and services over the internet
  2. Which is an advantage of e-commerce for an international business?

    • It eliminates all currency differences between countries
    • A website can reach customers in many countries at low cost
    • It removes the need for any delivery at all
    • It guarantees that no competitors exist online
  3. A business entering a lower-income country most likely adjusts which element of the marketing mix first?

    • Price, for example by offering a cheaper version
    • The number of board members and their job titles
    • The company's founding date and its original name
    • The head office address and the local bank it uses
  4. Which is a disadvantage of e-commerce for international trade?

    • No legal rules apply to online trading
    • Customers can never compare prices online
    • Delivery and returns can be costly across borders
    • A website is unable to take payments
  5. What does localising a product mean?

    • Making it only in the home country and not abroad at all
    • Adapting it to suit a specific country's tastes
    • Removing its brand name from the packaging and labels
    • Selling it through a single retailer in a single region
  6. Which is a way of competing internationally using the product element of the marketing mix?

    • Lowering the price in every market by the same amount
    • Adapting packaging and flavours for each overseas market
    • Closing the overseas websites to save costs
    • Reducing promotion to zero in all markets
  7. What is the main purpose of an e-commerce website for a business expanding abroad?

    • To close its UK warehouse entirely and outsource all stock
    • To avoid any tax reporting obligations in the home country
    • To replace all of its customer service staff with a website
    • To sell directly to overseas customers online
  8. A UK shop sells £40,000 online per month, and 25% of those sales are overseas. How much are overseas sales?

    • £10,000
    • £25,000
    • £40,250
    • £4,000
  9. An online firm's sales rose from £120,000 to £150,000. What is the percentage growth?

    • 30%
    • 125%
    • 20%
    • 25%
  10. A firm sells a product at £30 in the UK and sets a price 20% lower in another country. What is the price in that market?

    • £36
    • £20
    • £24
    • £10
  11. A clothing brand launches a different colour range and sizing for Japan. Which element of the marketing mix is being adapted?

    • Place
    • Promotion
    • Price
    • Product
  12. A business starts selling through a foreign online marketplace instead of distributors. Which element of the mix is changing?

    • Price level charged to each individual customer
    • Product design and the materials used in its making
    • Brand logo and the colour scheme on its packaging
    • Place, the distribution channel
  13. A firm uses different adverts on Chinese social media from the ones it uses in the UK. Which element is changing?

    • Product
    • Price
    • Place
    • Promotion
  14. Which factor is most likely to limit a UK e-tailer selling to a new country?

    • The fact that it has a website that customers can use
    • The colour of its logo on the website and the packaging
    • The number of its UK customers who buy from it each year
    • Different delivery costs and local consumer law
  15. A business keeps the same price abroad as at home despite higher delivery costs. What effect might this have?

    • No change in demand whatever the customers' circumstances
    • Lower profit margins on those overseas sales
    • Automatic removal of the delivery costs
    • Higher profit margins with no risk
  16. A firm translates its website into several languages. What is the main reason?

    • To stop overseas competitors from seeing its prices online
    • To remove the need for a currency converter on the site
    • To avoid the need for customer service in each market
    • To reach customers who prefer their own language
  17. A firm sells online only in countries where parcels can be delivered within three days. Which element of the mix is shaping this choice?

    • Product
    • Promotion
    • Place
    • Price
  18. Which strategy most helps a small firm compete internationally against large multinationals?

    • Using e-commerce to serve a niche with local adaptation
    • Stopping all online activity in order to save on costs
    • Raising prices above all competitors' prices in every market
    • Copying the large firm's entire product range exactly as it is
  19. A firm's online price is £50 abroad, but currency costs and tariffs add 15%. What is the landed price?

    • £7.50
    • £57.50
    • £65
    • £50
  20. Why might an e-commerce firm offer local-currency checkout in each market?

    • It stops competitors from seeing the prices it charges
    • It removes all exchange-rate risk for the firm entirely
    • It makes prices clearer for overseas buyers
    • It avoids the need to comply with local tax rules abroad

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