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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Beth

3 days 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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Salley

6 days 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

11 days ago

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

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Wilda

14 days ago

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

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Laquita

18 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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Rima

25 days ago

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

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