Answer ONE question from the three options. Each of the questions (1-3) carries
equal marks.
Question 1
Critically discuss and evaluate the positives and negatives of BREXIT (UK leaving
the European Union) on businesses. (60 marks)
Indicative Answer: Candidates must evaluate the real\ potential advantages and
disadvantages of UK exiting the European Union. Good answers must recognise that
about 45% of UK’s exports are currently linked to the EU’s single market of about
500 million people. They must analyse what BREXIT implications would be for
businesses and their supply chain (at least in short terms) if UK disengages from EU.
They should also discuss the potential benefits to businesses as a result of UK being
free to strike bilateral trade agreements with other countries post BREXIT. A good
answer could also situate this discussion in the context of current uncertainties being
experienced by businesses because of UK Government’s lack of clarity regarding its
exit strategy (will there be deal or no deal?) from the EU.
Question 2
How bad is trade tension between US and China for global economy? (60 marks).
Indicative Answer: Candidates must recognise the strategic positions of US and
China as the biggest and second biggest economies respectively in the world. Thus,
an escalating trade tension would have ripple effects on global trade, particularly
because of the interconnectedness of the world’s economy. Good answer must
appreciate the merits of protecting domestic economy (protectionism) from unfair
trade practices as being espoused by the Trump’s administration in the US, but
reflect on alternative approaches (i.e continuing negotiations) to addressing trade
conflicts\disputes in the interest of global business growth and prosperity.
Question 3
Discuss the importance of Corporate Social Responsibility to the survival of business
enterprise in today’s business environment. (60 marks).
Indicative Answer: Candidates should demonstrate an understanding of ‘CSR’ as
obligations (beyond just making profit) businesses are expected to discharge for the
good of communities and societies where they operate. Candidates should highlight
that today’s consumers are better educated and more demanding of exemplary
corporate citizenship. Thus, consumers’ impression of businesses’ CSR activities
could influence their buying behaviours. Good answers should cite and discuss
come examples of good corporate citizenship by businesses and explain how these
have improved the companies’ brand image.