External influences on business activity: past paper questions
Real questions on external influences on business activity
The newest 20 of 50 written questions. Open one to see it on the real paper.
- 0986/11 · May/June 2026 · Q4a[2]
Define ‘exchange rate depreciation’.
See it on the paper → - 0986/11 · May/June 2026 · Q4e[6]
Explain two reasons why a business might respond to environmental pressures. Which reason is likely to be the most important? Justify your answer.
See it on the paper → - 0986/21 · May/June 2026 · Q3a[8]
3 (a) Explain two ways the business cycle in country X going into the boom stage is likely to affect YC. 2 ..........
See it on the paper → - 0986/11 · October/November 2025 · Q2a[2]
Define ‘import tariff’.
See it on the paper → - 0986/11 · 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 → - 0986/21 · October/November 2025 · Q4b[12]
Using Appendix 3 and other information, consider the benefits and drawbacks for country Y of LB building its new factory there. Do you think the benefits for country Y are greater than the drawbacks? Justify your answer. Benefits: Drawbacks: Conclusion:
See it on the paper → - 0986/11 · May/June 2025 · Q1c[4]
Outline two ways an economic boom might affect Brendan’s business. Way 1: Way 2:
See it on the paper → - 0986/11 · 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 → - 0986/11 · May/June 2025 · Q4b[2]
Identify two reasons for globalisation. Reason 1: Reason 2:
See it on the paper → - 0986/11 · May/June 2025 · Q4c[4]
Outline two ways PKN could contribute to sustainable development. Way 1: Way 2:
See it on the paper → - 0986/12 · 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 → - 0986/12 · May/June 2025 · Q4d[6]
Explain two opportunities of globalisation for MHL. Opportunity 1: Explanation: Opportunity 2: Explanation:
See it on the paper → - 0986/22 · May/June 2025 · Q4a[8]
Explain two possible effects on TSE of the business cycle in country P moving into the recession stage. Effect 1: Explanation: Effect 2: Explanation:
See it on the paper → - 0986/11 · October/November 2024 · Q4a[2]
Define ‘external costs’.
See it on the paper → - 0986/11 · October/November 2024 · Q4c[4]
Identify four ways a pressure group might try to influence business decisions. Way 1: Way 2: Way 3: Way 4:
See it on the paper → - 0986/11 · October/November 2024 · Q4d[6]
Explain one possible benefit and one possible drawback to a country of having FSW (a multinational company) operating there. Benefit: Explanation: Drawback: Explanation:
See it on the paper → - 0986/21 · October/November 2024 · Q2b[12]
Consider how a decrease in interest rates and an increase in taxes in country P could affect CC. Which is likely to have the biggest effect on CC’s profit? Justify your answer. Decrease in interest rates: Increase in taxes: Conclusion:
See it on the paper → - 0986/11 · May/June 2024 · Q3e[6]
Explain two advantages to a business of being a multinational company. Which advantage do you think is likely to be the most important? Justify your answer.
See it on the paper → - 0986/11 · May/June 2024 · Q4e[6]
Do you think being ethical will always lead to lower profit for a business? Justify your answer.
See it on the paper → - 0986/12 · May/June 2024 · Q3c[4]
Outline one external cost and one external benefit RBG’s business activities might create. External cost: External benefit:
See it on the paper →
What examiners said
Many candidates recognised that an economic boom would increase sales for this flower business. Stronger candidates recognised the danger of rising competition or costs of production. Even the strongest candidates often struggled to provide two separate pieces of application. An error made by weaker candidates was to confuse an economic boom with a recession and state that sales would fall.
— Examiner report, May/June 2025, 0986/11 Q1(c) (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, 0986/11 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, 0986/11 Q4(b) (Cambridge)
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