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

2 months 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

19 days ago

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

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Bulah

1 months ago

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

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Alexis

1 months ago

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

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Tashia

2 months 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

2 months 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

18 days ago

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

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Lili

26 days ago

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

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Deandrea

1 months ago

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

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Verlene

1 months ago

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

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Talia

2 months ago

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

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Quentin

2 months ago

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

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Salley

2 months 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

2 months ago

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

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Wilda

2 months ago

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

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Laquita

2 months 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

23 days 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

24 days 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

27 days 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

2 months ago

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

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Rima

3 months ago

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

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