CIMA Exam CIMAPRA17-BA1-1 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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Alex

8 days 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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Tashia

10 days 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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28 days 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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Reena

4 days ago

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

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Rima

1 months ago

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

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