Business THEME 4

Question 1

The depreciation of the pound does what to import costs and export costs?

Answer 1

Weaker pound imports dearer exports cheaper (WPIDEC)

Question 2

The appreciation of the pound does what to import costs and export costs?

Answer 2

Stronger pound imports cheaper exports dearer (SPICED)

Question 3

Exchange rate

Answer 3

The value of one currency expressed in that of another

Question 4

Interest rates

Answer 4

The cost of borrowing (for the client) or the reward of saving (for the business)

Question 5

Inflation

Answer 5

The general increase in price

Question 6

GDP (Gross domestic product)

Answer 6

A country’s total product

Question 7

What do legislations do

Answer 7

Regulate, protect and ensure employee satisfaction

Question 8

Porters Five Forces - methods to work out the intensity of competition in a market

Answer 8

1. Power of customers
2. Power of suppliers
3. Threat of market entry
4. Threat from substitutes
5. Intensity of rivalry

Question 9

International trade

Answer 9

The exchange of goods and services between countries

Question 10

Tariffs

Answer 10

Taxes that are imposed on imports

Question 11

Quotas

Answer 11

Quotas are volume limits on the level of imports allowed into a country.