Lesson 2.1.3a

2.1.3a Imports, exports, changing locations and multinationals Quiz: Pearson Edexcel Business, Unit 6

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.1.3a, Imports, exports, changing locations and multinationals: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 6: Growing the business, written with Revision Ninja.

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The 20 questions

  1. What is a good or service brought into a country from abroad called?

    • An export
    • An import
    • A tariff
    • A multinational

  2. What is a good or service sold to buyers in another country called?

    • An export
    • A subsidy
    • An embargo
    • An import

  3. What is a business that operates in more than one country called?

    • A domestic firm
    • A franchise
    • A multinational
    • A sole trader

  4. What is a major advantage of importing goods instead of making them?

    • Slower delivery
    • Lower costs
    • More control
    • Higher taxes

  5. What is a key disadvantage of importing for domestic producers?

    • Lower tariffs
    • Higher subsidies
    • Increased competition
    • Stronger currency

  6. What is a primary benefit to a business of exporting goods?

    • Zero transport costs
    • Lower taxes
    • Larger markets
    • Simpler rules

  7. When a business moves its call centre to another country, this is an example of what?

    • Franchising
    • Changing location
    • Diversification
    • Exporting

  8. A UK firm sells £2m of goods abroad and buys £1.5m of materials from overseas. What is its trade balance from these figures?

    • A £3.5m deficit
    • A £0.5m deficit
    • A £3.5m surplus
    • A £0.5m surplus

  9. A clothing firm sources garments from a supplier in Vietnam because it is cheaper than UK production. Which term best describes this?

    • Exporting
    • Merging
    • Importing
    • Tariffing

  10. Why might a multinational set up a factory close to its overseas customers?

    • Higher tariffs
    • Stricter laws
    • Lower transport costs
    • Fewer sales

  11. Which factor directly affects the price of goods exported to another country?

    • Exchange rate
    • Corporation tax
    • Interest rate
    • Inflation rate

  12. A shop replaces bought-in foreign toys with ones it makes itself. What is this?

    • Outsourcing
    • Local production
    • Offshoring
    • Importing

  13. What is the likely effect on exports if the pound strengthens significantly?

    • Cheaper costs
    • Increased sales
    • Lower prices
    • Reduced demand

  14. What is a tax added to goods imported from another country called?

    • A subsidy
    • A tariff
    • A dividend
    • A quota

  15. Why might a business change its location as overseas sales grow quickly?

    • Faster delivery
    • More red tape
    • Fewer customers
    • Higher taxes

  16. An online shop sells to customers in twelve countries. Which term describes this type of international trade?

    • Exporting
    • Merging
    • Importing
    • Floating

  17. Which business is the best example of a multinational?

    • National hairdressers
    • Global car brand
    • Regional bakery
    • Local corner shop

  18. What is a major risk of moving all a firm's production abroad?

    • Higher demand
    • Damaged reputation
    • Lower efficiency
    • Cheaper wages

  19. What happens to the sterling cost of imports if the pound falls in value?

    • They fall
    • They stay unchanged
    • They become tax-free
    • They rise

  20. What is a major risk of building a factory in a low-wage country for home sales?

    • Lower worker productivity
    • Zero demand abroad
    • High transport costs
    • Mandatory domestic taxes

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