CIMAPRA17-BA1-1 Exam - Topic 1 Question 66 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 66
Topic #: 1

If a country joined an economic union (for example, the European Union) its business sector could benefit from all of the following except which one?

AHigher profit margins due to a reduction in transport costs.

BEconomies of scale as it gained access to a larger market.

CLower input costs as imports from other member states would become cheaper.

DReduced costs as a result of access to a wider supply of factors of production.

Show Suggested Answer

Suggested Answer: B

by Lilli at Feb 28, 2023, 07:34 PM

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An

7 months ago

I don't think reduced costs are guaranteed, though.

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Rima

7 months ago

Economies of scale are definitely a big plus!

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Amie

7 months ago

Wait, are we sure about the lower input costs? Sounds too good to be true.

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Gracia

7 months ago

Totally agree, bigger markets mean better profits!

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Hershel

8 months ago

A country joining an economic union usually sees lower transport costs.

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Yvonne

8 months ago

I feel like C is a strong option too, but I can't recall if there are exceptions to cheaper imports.

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Percy

8 months ago

This question reminds me of a practice question where we analyzed market access. B definitely sounds like a benefit.

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Dean

8 months ago

I'm not entirely sure, but I think D might not be a direct benefit since access to factors of production can vary.

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Earleen

8 months ago

I remember discussing how joining an economic union can lead to lower transport costs, so A seems like a benefit.

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Marla

8 months ago

This question seems straightforward - I just need to identify the 3 statements that describe the principles-based approach to corporate governance in the UK.

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Quentin

8 months ago

I've got this one! The answer is C. The Sprint length should remain the same, and the team can use this as a learning experience to improve their planning and forecasting for future Sprints.

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Jutta

8 months ago

I'm pretty sure the answer is C - BGP. That's the standard routing protocol used between Cisco ACI spines and external networks.

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Alex

1 year ago

Wait, is the correct answer 'None of the above'? I mean, who would turn down higher profits, cheaper imports, and more factors of production? That's the economic union jackpot!

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Oneida

12 months ago

C) Lower input costs as imports from other member states would become cheaper.

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Bulah

1 year ago

B) Economies of scale as it gained access to a larger market.

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Alexis

1 year ago

A) Higher profit margins due to a reduction in transport costs.

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Tashia

1 year ago

B) Economies of scale as it gained access to a larger market. Bigger is better when it comes to business, am I right or am I right?

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Beth

1 year ago

D) Reduced costs as a result of access to a wider supply of factors of production. More options, more opportunities to optimize, am I right?

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Coral

12 months ago

C) Lower input costs as imports from other member states would become cheaper.

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Lili

1 year ago

B) Economies of scale as it gained access to a larger market.

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Deandrea

1 year ago

A) Higher profit margins due to a reduction in transport costs.

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Verlene

1 year ago

C) Lower input costs as imports from other member states would become cheaper.

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Talia

1 year ago

B) Economies of scale as it gained access to a larger market.

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Quentin

1 year ago

A) Higher profit margins due to a reduction in transport costs.

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Salley

1 year ago

I'm going with C) Lower input costs as imports from other member states would become cheaper. Gotta take advantage of that sweet, sweet tariff-free trade!

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Rima

1 year ago

I believe they might not get higher profit margins due to a reduction in transport costs.

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Wilda

1 year ago

I agree, but which benefit do you think they would not get?

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Laquita

1 year ago

Hmm, this one's tricky. I think the answer is A) Higher profit margins due to a reduction in transport costs. Joining the EU should make trade within the bloc easier and cheaper.

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Vanna

1 year ago

I see your point, but I still think it's A) Higher profit margins due to a reduction in transport costs.

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Celia

1 year ago

Actually, I think it might be D) Reduced costs as a result of access to a wider supply of factors of production.

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Stephaine

1 year ago

I disagree, I believe the answer is C) Lower input costs as imports from other member states would become cheaper.

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Reena

1 year ago

I think the answer is B) Economies of scale as it gained access to a larger market.

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Rima

1 year ago

I think joining an economic union can really benefit a country's business sector.

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