O Level Business Studies 7115 · Topic 6

External influences on business activity: past paper questions

104 real questionsasked in 10 of the last 10 exam series2019–2025usually: Explain, Justify, Identify, Consider, Define

Real questions on external influences on business activity

The newest 20 of 104 written questions. Open one to see it on the real paper.

7115/11 · October/November 2025 · Q3d[6]
Explain two possible effects an economic recession might have on Vicki’s business. Effect 1: Explanation: Effect 2: Explanation:
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7115/11 · October/November 2025 · Q4d[6]
Explain two problems MTL might have when entering a new market in another country. Problem 1: Explanation: Problem 2: Explanation:
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7115/12 · 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.
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7115/21 · 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:
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7115/22 · October/November 2025 · Q4b[12]
Using Appendix 3 and other information, consider the following two ways FF could contribute to sustainable development. Which way should Kathryn choose? Justify your answer. • • Buying all flowers from sustainable sources Using electricity from renewable sources Buying all flowers from sustainable sources: Using electr...
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7115/11 · May/June 2025 · Q1b[2]
Identify two ways a government can support business start-ups. Way 1: Way 2:
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7115/11 · May/June 2025 · Q1c[4]
Outline two ways an economic boom might affect Brendan’s business. Way 1: Way 2:
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7115/11 · 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:
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7115/11 · May/June 2025 · Q4b[2]
Identify two reasons for globalisation. Reason 1: Reason 2:
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7115/11 · May/June 2025 · Q4c[4]
Outline two ways PKN could contribute to sustainable development. Way 1: Way 2:
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7115/12 · May/June 2025 · Q4c[4]
Outline two external costs MHL might create when producing its products. External cost 1: External cost 2:
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7115/12 · May/June 2025 · Q4d[6]
Explain two opportunities of globalisation for MHL. Opportunity 1: Explanation: Opportunity 2: Explanation:
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7115/22 · 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:
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7115/11 · October/November 2024 · Q4a[2]
Define ‘external costs’.
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7115/11 · 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:
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7115/11 · 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:
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7115/12 · October/November 2024 · Q1d[6]
Explain two ways an economic recession might affect Avtar’s business. Way 1: Explanation: Way 2: Explanation:
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7115/12 · October/November 2024 · Q2d[6]
Explain one advantage and one disadvantage to SNT of forming a joint venture when entering new markets in other countries. Advantage: Explanation: Disadvantage: Explanation:
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7115/12 · October/November 2024 · Q2e[6]
Do you think the advantages to a business of being ethical are greater than the disadvantages? Justify your answer.
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7115/21 · 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:
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What examiners said

Correct answers produced for this question focused on the potential for lower prices and higher quality for this computer manufacturer. The same point of application, computers, was often repeated in each reason. Weaker responses thought that the business was selling rather than buying raw materials abroad.
— Examiner report, October/November 2023, 7115/11 Q3(c) (Cambridge)

Many candidates understood the benefits of being ethical in attracting customers to the business. Such answers often gained the knowledge and application marks available. Limitations were less well understood. Very few candidates were able to develop their answers fully to show analysis. The mark scheme provides examples of the most appropriate impacts that were credited. A significant number of c...
— Examiner report, October/November 2023, 7115/11 Q3(d) (Cambridge)

Well answered by most candidates. A common mistake was repetition. For example, air pollution and noise pollution are both examples of pollution. Candidate must identify different ways to access both marks.
— Examiner report, October/November 2023, 7115/12 Q2(a) (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.

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In the syllabus

6.1.1 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)

6.1.2 How government control over the economy • Identify government economic objectives,

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

6.2.1 Environmental concerns and ethical issues • How business activity can impact on the

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

6.3.1 The importance of globalisation: • The concept of globalisation and the reasons for

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

6.3.2 Reasons for the importance and growth of • Benefits to a business of becoming a

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

6.3.3 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)

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