WEDNESDAY: 7 December 2022. Afternoon Paper. Time Allowed: 3 hours.
Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.
QUESTION ONE
1. Describe the term “strategic alliances”. (2 marks)
State FOUR reasons why multinational corporations engage in strategic alliances. (4 marks)
2. Outline SIX reasons why citizens could make use of the financial system in their country. (6 marks)
3. Explain FOUR benefits derived by businesses from setting clear objectives. (8 marks)
(Total: 20 marks)
QUESTION TWO
1. Explain the following terms:
Aggregate demand. (2 marks)
Multilateral trading system. (2 marks)
2. List SIX benefits of the concept of product life cycle. (6 marks)
3. With reference to internal economies of scale:
Analyse TWO features of marketing economies. (4 marks)
Explain THREE features of technical economies. (6 marks)
(Total: 20 marks)
QUESTION THREE
1. Identify FOUR reasons why income inequality is unfavourable for business. (4 marks)
2. Explain FOUR types of government economic policies that affect business operations. (8 marks)
3. Examine FOUR measures that businesses could take to improve performance during inflation. (8 marks)
(Total: 20 marks)
QUESTION FOUR
1. List FOUR causes of balance of payment disequilibrium. (4 marks)
2. Describe THREE disadvantages of secondary industries. (6 marks)
3. Analyse FIVE stages of an industry life cycle model. (10 marks)
(Total: 20 marks)
QUESTION FIVE
1. Outline SIX factors that could influence the cost behavior of a firm. (6 marks)
2. State SIX factors that have contributed to the growth of globalisation. (6 marks)
3. Summarise FOUR disadvantages of international trade restrictions. (8 marks)
(Total: 20 marks)
QUESTION SIX
1. Distinguish between “absolute advantage” and “comparative advantage” theories. (4 marks)
Identify FOUR limitations of the comparative advantage theory. (4 marks)
2. Enumerate FOUR objectives of multinational corporations. (4 marks)
3. Explain FOUR determinants of foreign direct investments (FDIs). (8 marks)
(Total: 20 marks)
QUESTION SEVEN
1. Summarise THREE constraints of strategy formulation. (6 marks)
2. Describe THREE advantages of fiscal policies. (6 marks)
3. Analyse FOUR factors that could affect industry entry barriers. (8 marks)
(Total: 20 marks)
