Lesson 4.2.2
4.2.2 Assessing a country as a market Quiz: Pearson Edexcel Business, Unit 4
20 questions
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Lesson 4.2.2, Assessing a country as a market: 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
-
How is disposable income best defined for a household?
- Income after tax
- Total gross income
- Income after spending
- Discretionary spending only
-
Which factor measures how simple regulatory processes are for businesses entering a new market?
- Ease of business
- Disposable income
- Exchange rate
- Infrastructure quality
-
What primary risk does a firm face in a politically unstable market?
- Higher direct tax
- Contract enforcement failure
- Fluctuating exchange rates
- Inadequate transport links
-
What term describes physical networks like transport, energy, and communications in a country?
- Trade blocs
- Infrastructure
- Supply chains
- Offshoring facilities
-
What happens to UK exports when a foreign currency appreciates against sterling?
- Prices stay constant
- They become dearer
- They become cheaper
- They face tariffs
-
Disposable income per household rises from 30,000 to 33,000. What is the percentage increase?
- 33%
- 11%
- 3%
- 10%
-
High disposable income combined with poor infrastructure and political instability creates what condition?
- High risk growth
- Stable stagnation
- Low risk growth
- Safe decline
-
Which two combined factors best indicate the total spending potential of a consumer market?
- Tariffs and quotas
- Inflation and interest
- Infrastructure and stability
- Population and income
-
How does a low ease of doing business score affect an entering firm?
- Stabilises exchange rates
- Increases consumer demand
- Increases setup costs
- Lowers transport costs
-
What is the effect on UK exports if the buyer's local currency depreciates against sterling?
- Demand may fall
- Export costs fall
- Tariffs are removed
- Demand will rise
-
What strategy can a firm use to mitigate exchange rate uncertainty when selling abroad?
- Lowering quality
- Increasing direct taxes
- Financial hedging
- Offshoring production
-
Which factor measures legal protections such as contract enforcement and property rights?
- Ease of doing business
- Exchange rate
- Disposable income
- Infrastructure
-
A country has a population of 50 million and average disposable income of 8,000 per person. What is total disposable income?
- 40 billion
- 400 billion
- 4 billion
- 400 million
-
Poor transport links and inadequate cold storage represent weak conditions in what area?
- Disposable income
- Ease of business
- Infrastructure
- Political stability
-
What is the primary risk of targeting a growing market with a volatile currency?
- Revenue fluctuation
- Falling population
- High tariff barriers
- Poor infrastructure
-
A sudden change of government through unrest or disorder is best described as:
- Fiscal consolidation
- Trade liberalisation
- Political instability
- Structural change
-
Political instability in a target market primarily threatens which aspect of business activity?
- Consumer spending preferences
- Operational continuity
- Exchange rate appreciation
- Infrastructure expansion
-
Which market profile is most attractive for selling high-value consumer goods?
- High disposable income
- High economic risk
- Saturated domestic market
- Low disposable income
-
Which type of good sees demand rise at a faster rate than the increase in disposable income?
- Basic necessity
- Normal good
- Inferior good
- Luxury good
-
Which metric best indicates individual purchasing power when assessing a country as a potential market?
- Disposable income
- Inflation rate
- Headline GDP
- Interest rate
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