Document page

Business Studies IGCSEPDF 181

SourcePortal capture, 9 Oct 2026

PDF 181

Page image rendered from the stored file at 110 dpi; it sharpens as you zoom. Outlines are placed from each region’s stored position on the page (612 × 792 pt).

no text layerread by OCR (tesseract5-eng@250dpi)

Source of this text: read by OCR. The better of the embedded text and OCR is kept.

Government policy change | Possible business decision | Problems with this decision Increase income tax ~ Lower prices on existing Less profit will be made on each this reduces the amount products to increase demand —_| itern sold (reduces gross profit consumers have to spend margin) Praduce ‘cheaper’ products to | The brand image of a product allow for lower prices might be damaged by using cheaper versions of it Increase tariffs on imports Focus more on the domestic —_| It might still be more profitable to market as locally produced export goods now sccm cheaper Switch from buying imported — | Foreign materials and components materials and components to | might be of higher quality locally produced ones Increase interest rates Reduce investment so future | Other companies might still grow growth will be less so market share will be lost Develop cheaper products that | Depends on the product but consumers will be better able | could consurners start to think to afford that the quality and brand image are lower? Sell assets for cash to reduce —_| The assets might be needed for existing loans future expansion