What this practice covers
These questions are drawn from past CIE 0264 Business papers and filtered to business and the international economy. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on business and the international economy, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Defining globalisation as "countries trading with each other", which has always happened, instead of the growth in cross-border activity.
- Confusing a tariff with a quota. A tariff is a tax on imports, a quota is a limit on quantity.
- Saying a tariff is good for every business in the country, when businesses importing components pay more because of it.
- Calling a business an MNC because it exports. It must have operations in more than one country.
- Saying repatriation of profits means the business makes a profit, rather than sending profit back to its home country.
- Treating an external cost as any cost the business dislikes. It is a cost paid by someone else.
- Getting the exchange rate direction backwards. Appreciation makes exports dearer abroad and imports cheaper at home.
- Answering an exchange rate question about an exporter as though it were about an importer, without checking which the business is.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Business and the international economy revision notes.