IGCSE Business Studies 0450 · Topic 6

External influences on business activity: past paper questions

159 real questionsasked in 10 of the last 10 exam series2019–2026usually: Explain, Identify, Justify, Define, Outline

Real questions on external influences on business activity

The newest 20 of 159 written questions. Open one to see it on the real paper.

0450/11 · May/June 2026 · Q4a[2]
Define ‘exchange rate depreciation’.
See it on the paper →
0450/12 · May/June 2026 · Q3b[2]
Identify two external users of accounts. external user external user
See it on the paper →
0450/12 · May/June 2026 · Q4c[4]
Outline two ways pressure groups might try to influence BRK’s decisions. way way
See it on the paper →
0450/12 · May/June 2026 · Q4d[6]
Explain two advantages to BRK of being a multinational company (MNC). advantage explanation advantage explanation
See it on the paper →
0450/12 · May/June 2026 · Q4e[6]
Explain two external benefits a business might create. Which benefit is likely to be the most important? Justify your answer.
See it on the paper →
0450/13 · May/June 2026 · Q4c[4]
Outline two ways import quotas affect LKH. way way
See it on the paper →
0450/13 · May/June 2026 · Q4e[6]
Explain two possible disadvantages to a country of a multinational company (MNC) locating there. Which disadvantage is likely to be the most important? Justify your answer.
See it on the paper →
0450/22 · May/June 2026 · Q4b[12]
Consider the following two ways KE could become an ethical business. Which is likely to be the best way for KE? Justify your answer. • • buying from ethical suppliers paying fair wages to employees buying from ethical suppliers paying fair wages to employees conclusion
See it on the paper →
0450/12 · February/March 2026 · Q3a[2]
Define ‘economic growth’.
See it on the paper →
0450/11 · October/November 2025 · Q2a[2]
Define ‘import tariff’.
See it on the paper →
0450/11 · October/November 2025 · Q3d[6]
Explain two possible effects an economic recession might have on Vicki’s business. Effect 1: Explanation: Effect 2: Explanation:
See it on the paper →
0450/12 · October/November 2025 · Q1e[6]
Explain two possible benefits to a country of a multinational company locating there. Which benefit is likely to be the most important? Justify your answer.
See it on the paper →
0450/13 · October/November 2025 · Q3a[2]
Identify two ways business activity can affect the environment. Way 2: Way 1:
See it on the paper →
0450/13 · October/November 2025 · Q3b[2]
Identify two reasons why a business should respond to environmental pressures. Reason 1: Reason 2:
See it on the paper →
0450/13 · October/November 2025 · Q3c[4]
Outline two ways economic growth might affect STB. Way 1: Way 2:
See it on the paper →
0450/23 · October/November 2025 · Q4b[12]
Consider the opportunities and threats of globalisation for ES. Are the threats likely to be greater than the opportunities for ES? Justify your answer. Opportunities: Threats: Conclusion:
See it on the paper →
0450/11 · May/June 2025 · Q2a[2]
Identify one way each of the following changes in country X’s exchange rate might affect businesses which import raw materials. Depreciation: Appreciation:
See it on the paper →
0450/11 · May/June 2025 · Q4b[2]
Identify two reasons for globalisation. Reason 1: Reason 2:
See it on the paper →
0450/11 · May/June 2025 · Q4c[4]
Outline two ways PKN could contribute to sustainable development. Way 1: Way 2:
See it on the paper →
0450/12 · May/June 2025 · Q4c[4]
Outline two external costs MHL might create when producing its products. External cost 1: External cost 2:
See it on the paper →

What examiners said

Comprehensive responses • These candidates were able to provide a full definition of the term. Such responses recognised that economic growth involved an increase in gross domestic product (GDP) and that this increase occurred over time. Limited responses • Many candidates understood that it referred to increase in GDP. Several responses omitted the time element. • Some identified features of ‘ec...
— Examiner report, February/March 2026, 0450/12 Q3(a) (Cambridge)

Many candidates were able to answer this question correctly. A common error was to state that depreciation would make imports cheaper and appreciation more expensive.
— Examiner report, May/June 2025, 0450/11 Q2(a) (Cambridge)

Candidates found this to be the most challenging question on the paper. Many candidates confused globalisation with multinational businesses. Such candidates stated the benefits of operating in more than one country.
— Examiner report, May/June 2025, 0450/11 Q4(b) (Cambridge)

Practise this topic

Answer these questions online and get each one marked against the official mark scheme, with what you missed and how to fix it.

Practise external influences on business activity

In the syllabus

1 Business cycle: • Main stages of the business cycle, e.g. growth,

Impact on businesses of changes in employment levels, inflation and Gross Domestic Product (GDP)

2 0450.6.1.2.01 — Impact of changes in interest rates

Impact of changes in interest rates
How businesses might respond to these changes

3 0450.6.1.2.02 — How businesses might respond to these changes

How businesses might respond to these changes

4 0450.6.2.1.01 — Sustainable development; how business activity can contribute to this

Sustainable development; how business activity can contribute to this
How and why business might respond to environmental pressures and opportunities, e.g. pressure groups
The role of legal controls over business activity affecting the environment, e.g. pollution controls
Ethical issues a business might face: conflicts between profits and ethics
How business might react and respond to ethical issues, e.g. child labour, paying fair prices to suppliers

5 0450.6.2.1.02 — How and why business might respond to environmental pressures and opportunities, e.g. pressure groups

How and why business might respond to environmental pressures and opportunities, e.g. pressure groups

6 0450.6.2.1.03 — The role of legal controls over business activity affecting the environment, e.g. pollution controls

The role of legal controls over business activity affecting the environment, e.g. pollution controls

7 0450.6.2.1.04 — Ethical issues a business might face: conflicts between profits and ethics

Ethical issues a business might face: conflicts between profits and ethics

8 0450.6.2.1.05 — How business might react and respond to ethical issues, e.g. child labour, paying fair prices to suppliers

How business might react and respond to ethical issues, e.g. child labour, paying fair prices to suppliers

9 0450.6.3.1.01 — Opportunities and threats of globalisation for businesses

Opportunities and threats of globalisation for businesses
Why governments might introduce import tariffs and import quotas

10 0450.6.3.1.02 — Why governments might introduce import tariffs and import quotas

Why governments might introduce import tariffs and import quotas

11 0450.6.3.2.01 — Potential benefits to a country and/or economy where a MNC is located, e.g. jobs, exports, increased choice, investment

Potential benefits to a country and/or economy where a MNC is located, e.g. jobs, exports, increased choice, investment
Potential drawbacks to a country and/or economy where a MNC is located, e.g. reduced sales of local businesses, repatriation of profits

12 0450.6.3.2.02 — Potential drawbacks to a country and/or economy where a MNC is located, e.g. reduced sales of local businesses, repatriation of profits

Potential drawbacks to a country and/or economy where a MNC is located, e.g. reduced sales of local businesses, repatriation of profits

13 The impact of exchange rate changes: • Depreciation and appreciation of an exchange

How exchange rate changes can affect businesses as importers and exporters of products, e.g. prices, competitiveness, profitability (exchange rate calculations will not be assessed)

Past papers, syllabus and examiner reports © UCLES (Cambridge University Press & Assessment). Questions are matched to topics from the official syllabus. AssessPro is independent and not endorsed by Cambridge.