External influences on business activity — IGCSE Business Studies (0450) questions by topic

External influences on business activity questions in IGCSE Business Studies ask you to define terms such as external benefits, then trace how a named change, like an exchange-rate depreciation or a government report, or a recession stage of the business cycle, might affect a specific importer or restaurant.

Explain and identify lead the command words, joined by outline, justify and consider, with every question here worth 20 marks. The 5 questions on this page are drawn from 2025 papers. Practise linking each cause to a business-specific effect, then submit your answer for instant marking to check the chain of reasoning holds together rather than stopping at the first stated impact.

May–June 2025, Paper 11

Question 2 · 20 marks

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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May–June 2025, Paper 13

Question 3 · 20 marks

Define 'external benefits'.

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May–June 2025, Paper 21

Question 4 · 20 marks

Explain one effect on PF of the increase in each of the two taxes outlined in Appendix 2. - Tax on people's income - Tax on profit made by businesses

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May–June 2025, Paper 22

Question 4 · 20 marks

Explain two possible effects on TSE of the business cycle in country P moving into the recession stage.

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May–June 2025, Paper 23

Question 4 · 20 marks

Explain two ways the information in the government report outlined in Appendix 3 might affect Jemi's restaurant.

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