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Business Studies IGCSEPDF 199
212 pagesrevision 46931
PDF 199
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me 7
2 ~=NSL isa business based in country X. It manufactures food products including bread and breakfast
cereals. NSL uses lean production in its factory. Maintaining quality is important. NSL imports 15%
of its raw materials. Changes in country X's exchange rate can affect businesses which import raw
materials. NSL's Marketing Manager knows the business should respond to changes in consumer
spending pattems. She is aware that market research can be used to help make business decisions.
(a) Identify one way each of the following changes in country X's exchange rate might affect
businesses which import raw materials.
Depreciation:
Appreciation:
(b) Identify two reasons why consumer spending patterns might change.
Reason 1:
ONNOO” 7
4 PKN manufactures glass. Contributing to sustainable development is important to the business.
PKN has factories in 30 countries. It has 27000 employees. The Managing Director knows PKN
has benefited from globalisation. She plans to expand the business using external growth. Retained
profit is one source of finance a business could use to fund expansion. Some of PKN's directors
are concerned about possible diseconomies of scale as the business grows.
(b) Identify two reasons for globalisation.
(c) Outline two ways PKN could contribute to sustainable development.