Lesson 4.2.1

4.2.1 Push and pull factors for trade Quiz: Pearson Edexcel Business, Unit 4

20 questions

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Lesson 4.2.1, Push and pull factors for trade: 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. Which of the following is a push factor for a business expanding internationally?

    • Global risk spreading
    • Rapid overseas growth
    • Economies of scale
    • Saturated domestic market

  2. Which of the following is considered a pull factor for international trade expansion?

    • Spreading business risk
    • Saturated home market
    • Falling domestic demand
    • High domestic competition

  3. As a pull factor, how do higher production volumes from global sales benefit a business?

    • Lower average costs
    • Increased unit overheads
    • Lower profit margins
    • Higher marginal tax

  4. What term describes relocating business activities to another country while retaining ownership?

    • Reshoring
    • Insourcing
    • Outsourcing
    • Off-shoring

  5. What term describes contracting an external business to perform tasks previously done internally?

    • Franchising
    • Off-shoring
    • Outsourcing
    • Downsizing

  6. Selling a declining product in international markets helps achieve which business objective?

    • Product life extension
    • Market penetration
    • Product diversification
    • Cost minimisation

  7. Which pull factor reduces a firm's exposure to economic downturns in a single country?

    • Domestic competition
    • Risk spreading
    • Saturated markets
    • Economies of scale

  8. A firm's home market is flat at 500,000 units a year. Exports add 150,000 units, so total sales are 650,000 units. What share of total sales comes from exports?

    • 30%
    • 75%
    • 16.7%
    • 23.1%

  9. Moving a call centre abroad while keeping operations in-house is an example of what?

    • Outsourcing
    • Off-shoring
    • Insourcing
    • Franchising

  10. A firm leaves its home market due to falling sales and heavy price cutting. What is this push factor?

    • Trade bloc barriers
    • Economies of scale
    • Risk spreading
    • Intense competition

  11. Which pair of factors determines whether a business decides to expand into international markets?

    • Push and pull
    • Fixed and variable
    • Primary and secondary
    • Internal and external

  12. Which of the following is a pull factor encouraging a business to trade internationally?

    • Saturated home market
    • Economies of scale
    • Falling local demand
    • Heavy domestic competition

  13. How does expanding sales into international markets help lower average fixed costs?

    • Increasing variable costs
    • Reducing total output
    • Lowering sales volume
    • Spreading fixed costs

  14. What key feature distinguishes outsourcing from off-shoring?

    • Overseas location
    • Product quality
    • Wage reduction
    • External contract use

  15. A firm faces slow home growth but high overseas demand. Which factors drive its expansion?

    • Exchange rate only
    • Internal only
    • Organic only
    • Push and pull

  16. International extension of a product life cycle is most effective when target markets are at what?

    • Identical maturity stages
    • Different growth stages
    • Saturated demand levels
    • Decline stages only

  17. A firm sells 2 million units at home and 0.5 million units abroad. What percentage of its total sales is overseas?

    • 40%
    • 50%
    • 20%
    • 25%

  18. What is the primary benefit to a firm of entering a trading bloc market?

    • Increased border checks
    • Higher import tariffs
    • Strict currency controls
    • Reduced trade barriers

  19. What is the main financial benefit of off-shoring operations to a developing nation?

    • Higher tariff barriers
    • Greater transport costs
    • Reduced output capacity
    • Lower labour costs

  20. Fixed costs are £120,000. Output rises from 40,000 to 60,000 units. What is the new average fixed cost?

    • £2.00 per unit
    • £0.50 per unit
    • £3.00 per unit
    • £1.50 per unit

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