External influences

Worked examples (6)

• 1Explain the effect of an interest-rate rise
• 2Apply SPICED to an exporter
• 3Explain the effect of inflation on costs
• 4Analyse a recession's impact on a luxury firm
• 5Analyse a weak currency on an importer
• 6Analyse a rate rise on a highly-geared firm

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Explain (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section B style — Analyse (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Explain how competition affects pricing
• 2Explain one response to a new competitor
• 3Explain the benefit of a USP
• 4Analyse responses to a new competitor
• 5Analyse operating in a highly competitive market
• 6Analyse the benefits of market dominance

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Explain (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section B style — Analyse (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Explain the effect of consumer protection law
• 2Explain a minimum-wage rise on a labour-intensive firm
• 3Explain a benefit of complying with health u0026 safety law
• 4Analyse the impact of employment law
• 5Analyse competition law on a dominant firm
• 6Analyse environmental legislation: cost vs benefit

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Explain (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section B style — Analyse (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)