AQA GCSE Business: Globalisation and Legislation (8132) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover AQA GCSE Business (8132) sections 3.2.4 Globalisation and 3.2.5 Legislation, from 3.2 Influences on business. The specification gives no tier labels for these sections. Read the study guide and revision notes first. Related pages: course hub | printable checklist | free diagnostics

Questions

1. Define the term globalisation and identify one way a UK business could compete internationally. [3]

2. Explain one benefit and one drawback of globalisation for a UK business that makes furniture. [4]

3. Halsewick Lighting is a UK business that makes designer lamps and sells most of them to shops in other countries. The pound becomes stronger. Analyse how this could affect Halsewick’s sales and profit. [4]

4. Aldercombe Foods imports its spices. The yearly import bill is £180,000 and operating profit is £54,000. A weaker pound raises the import bill by 8%. Prices and volumes stay the same. Calculate the extra cost, the new operating profit and the percentage fall in operating profit (to 1 decimal place). [4]

5. Treverton Bakehouse has 11 part-time staff, each working 16 hours a week for 52 weeks a year, all paid the legal minimum. The legal minimum rises by 45p an hour. (a) Calculate the extra yearly wage cost. [3] (b) Explain one way the owner could respond. [2]

6. Explain two ways the Equality Act (2010) could affect how Treverton Bakehouse recruits staff. [4]

7. Analyse the benefits to Davenmoor Pallets, a warehouse business, of providing a safe working environment under the Health and Safety at Work Act (1974). [6]

8. Thornsett Home Goods sold a set of towels as “100% organic cotton” in its adverts. A test shows that they are a cotton and polyester mix. Explain two consequences for the business of failing to follow consumer law on trade descriptions. [4]

9. Orrinshaw Cycles is a UK business that makes bicycles. It sells 1,500 bikes a year abroad at £420 each and buys gears from overseas for £150,000 a year. The pound is expected to strengthen. Overseas sales are expected to fall by 10%, while the gear bill is expected to fall by 6%. A competitor abroad offers cheaper bikes of similar design. Evaluate whether Orrinshaw should keep selling abroad. [9]

10. Treverton Bakehouse says that employment law, health and safety law and consumer law cost it too much. Evaluate whether the costs of legislation outweigh the benefits for a small business. [9]

Answers

1. Globalisation is the growing connection of the world’s economies and markets [1], so goods, services and money cross borders more easily [1]. One way to compete: offering better designs, higher quality products or lower prices [1]. [3] Examiner insight: A definition earns more credit when it says what is connected and what moves. A bare “selling abroad” is too narrow.

2. Benefit: access to a bigger market through exports, which can raise sales [1]. This could let the firm make more and spread its costs over more units [1]. Drawback: overseas furniture makers can sell in the UK and take customers [1]. This could force the firm to cut prices or lose sales [1]. [4] Examiner insight: Each “explain” point usually needs a reason attached to it. Naming a benefit and a drawback with no consequence leaves marks unclaimed.

3. A stronger pound makes UK lamps dearer for overseas buyers [1]. Halsewick’s sales may fall because shops buy from rivals [1]. If it cuts prices to keep sales, each lamp earns less profit [1]. As most sales are abroad, profit is likely to fall [1]. [4] Examiner insight: Use the detail in the stem. Saying that most sales are abroad lets you reach a conclusion about this business rather than any exporter.

4. Extra cost = 8% of £180,000 = £14,400 [1]. New operating profit = £54,000 - £14,400 = £39,600 [1]. Fall = £14,400 / £54,000 = 0.2667 [1]. Percentage fall = 26.7% [1]. [4] Examiner insight: Show each stage. Work is easiest to follow when you state the base figure for the percentage, here the original profit.

5. (a) Hours = 11 x 16 x 52 = 9,152 [1]. Extra cost = 9,152 x £0.45 [1] = £4,118.40 a year [1]. (b) The owner could raise prices [1], which covers the cost but may reduce customers [1]. Accept other responses with a linked effect, such as cutting hours. [5] Examiner insight: A response in (b) needs its consequence. The idea alone is not developed enough.

6. The Act makes unfair treatment because of characteristics such as age, sex, race, disability or religion unlawful [1]. Way 1: the business must choose staff on skills and experience, so it may need clear selection criteria [1]. Way 2: managers may need training in fair interviewing [1], which costs time and money [1]. Accept a workplace adaptation for a disabled applicant. [4] Examiner insight: The specification asks for the effect on the business, so link the law to recruitment and training and not just describe it.

7. Fewer accidents mean less absence, so the firm pays less for cover and lost output [1][1]. Staff who feel safe and valued are more motivated and productive [1][1]. A good safety record improves reputation, which helps recruit staff [1]. The firm avoids compensation claims and legal costs [1]. Maximum 6. [6] Examiner insight: In an “analyse” answer, each benefit scores best when followed by a consequence for the business, not left as a list.

8. Consequence 1: the firm may have to refund customers or pay compensation [1], which cuts profit [1]. Consequence 2: customers lose trust in the brand [1], so future sales may fall [1]. Accept legal action or penalties with a linked effect. [4] Examiner insight: Naming a consequence earns less than showing what it does to the business, so extend each point once.

9. Revenue lost: 10% of 1,500 = 150 bikes, and 150 x £420 = £63,000 [1]. Gear saving: 6% of £150,000 = £9,000 [1]. The saving is much smaller than the lost revenue, so exports look weaker, though some production costs also fall with fewer bikes [1]. For keeping: overseas sales are still 1,350 bikes, worth £567,000 [1]. Ending exports would lose that income, and the UK market may not replace it [1]. Design quality could support the price [1]. Against: a cheaper rival abroad adds pressure [1]. Judgement: keep selling abroad, but seek a lower-cost source of gears and review the price [1], since the exports still bring in £567,000 and the gear saving is small [1]. [9] Examiner insight: An evaluation needs both sides and a decision. Making the judgement depend on the figures in the case stands up better than a general opinion.

10. Costs: higher wage bill, training time, equipment, and checks on products [1][1]. These are a larger share of a small firm’s budget [1]. Benefits: fair recruitment, a safer workplace and honest selling improve morale, reputation and customer trust [1][1]. Compliance also avoids penalties, compensation and lost sales [1], which could close a small firm [1]. The balance depends on the size of the cost and the likelihood of failure [1]. Judgement: the benefits outweigh the costs over time, because the cost of breaking the law is larger and less certain than the cost of following it [1]. Accept a different reasoned conclusion, for example for a very low-margin firm. [9] Examiner insight: Set costs against benefits directly instead of writing two separate lists. A final judgement that refers back to the firm’s size is stronger.

Where marks are usually lost

• Writing that a stronger pound is always good or always bad.
• Converting currencies, which the specification says you will not be asked to do.
• Naming a law but leaving out its effect on the business.
• Ignoring the figures or details given in the case study.
• Giving costs of legislation with no benefits, or the reverse.
• Writing a list for an evaluate question with no judgement.
• Leaving out the base figure when calculating a percentage change.
• Confusing importers with exporters.

Next steps

• Revision notes
• Study guide
• AQA GCSE Business course hub
• Printable checklist
• All free 10-minute diagnostics
• Book a free trial class

Frequently asked questions

Do I have to convert currencies in AQA GCSE Business (8132)? No. The specification says you will not be asked to calculate exchange rate conversions; questions ask about the effect of a stronger or weaker pound on a business.

How much detail do I need about each law? Only brief knowledge of each law is needed. Most marks come from explaining its effect on the business, such as costs, training needs, recruitment and the consequences of failing to comply.

How should I answer an exchange rate question? Say whether the business imports or exports and whether the pound is stronger or weaker, then follow the chain from price or cost to sales and profit, using figures from the case.

What makes an evaluate answer on legislation score well? Set the costs of complying directly against the benefits, using the case details, and finish with a judgement rather than two separate lists.

Official syllabus

AQA GCSE Business (8132), specification for first teaching from September 2017, published by AQA: sections 3.2.4 Globalisation and 3.2.5 Legislation.