Lesson 4.1.2

4.1.2 International trade and business growth Quiz: Pearson Edexcel Business, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.1.2, International trade and business growth: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 4: Global business, written with Revision Ninja.

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The 20 questions

  1. What term describes goods and services sold to buyers in other countries?

    • Imports
    • Tariffs
    • Subsidies
    • Exports

  2. What is occurring when a country's exports exceed its imports?

    • Budget surplus
    • Trade deficit
    • Current deficit
    • Trade surplus

  3. What is it called when a firm concentrates production on specific goods?

    • Globalisation
    • Diversification
    • Specialisation
    • Protectionism

  4. Which term describes a firm investing in productive assets abroad?

    • Foreign direct investment
    • Portfolio investment
    • Export subsidisation
    • Domestic borrowing

  5. Having a comparative advantage means producing at a lower what?

    • Absolute cost
    • Transport cost
    • Wage rate
    • Opportunity cost

  6. What primary benefit does exporting bring to a growing business?

    • Lower transport costs
    • Cheaper labour
    • Higher tax rates
    • Larger markets

  7. A country exports goods worth 40 million and imports goods worth 55 million. What is its balance of trade in goods?

    • A surplus of 95 million
    • A deficit of 95 million
    • A surplus of 15 million
    • A deficit of 15 million

  8. A business's exports rise from 80 million to 100 million. What is the percentage increase in exports?

    • 20%
    • 125%
    • 25%
    • 80%

  9. What is a major macroeconomic benefit of incoming FDI?

    • Higher inflation
    • New jobs
    • Reduced exports
    • Lower productivity

  10. What is a primary strategic risk of extreme business specialisation?

    • Excess liquidity
    • Low efficiency
    • Over-dependence
    • High diversification

  11. Are the economic effects of FDI always universally positive?

    • Not always
    • Always negative
    • Completely neutral
    • Always positive

  12. What drives mutual economic gains when two countries trade?

    • Identical costs
    • Comparative advantage
    • Absolute disadvantage
    • Equal population

  13. Which economic activity represents a service export for the UK?

    • Overseas tourism
    • Foreign manufacturing
    • Domestic car sales
    • Imported energy

  14. What financial risk do businesses face when entering export markets?

    • Lower taxation
    • Domestic inflation
    • Fixed exchange rates
    • Currency fluctuations

  15. How does international trade primarily drive firm expansion?

    • Higher tariffs
    • Increased debt
    • Reduced sales
    • Economies of scale

  16. Why are imports considered a leakage from the circular flow?

    • Foreign spending
    • Export earnings
    • Tax revenues
    • Domestic savings

  17. What revenue stream from an overseas subsidiary is typically sent back to a parent company?

    • Local wages
    • Repatriated dividends
    • Domestic taxes
    • State subsidies

  18. Which primary benefit do consumers typically experience from international trade and imports?

    • Reduced product quality
    • Wider consumer choice
    • Fewer retail stores
    • Higher tax rates

  19. What is the likely effect on export demand when sterling appreciates against the euro?

    • Export demand falls
    • Import demand falls
    • Export demand rises
    • Export prices drop

  20. What key feature distinguishes foreign direct investment from portfolio investment in a host economy?

    • Government bond purchases
    • Existing share transfers
    • Short-term currency speculation
    • Productive capacity creation

All Pearson Edexcel Business quizzes