NAME: ______________________________________ CLASS: ___________________ SEC: _______

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A Level - Business Studies
CHAPTER 6– EXTERNAL INFLUENCE ON BUSINESS ACTIVITY
Answer the following questions.

1. Railways can be ‘privatised’. If you agree on this statement then highlight the reason why? If
you disagree then give the justification for the same.
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2. Now is the era of digitalisation, whatever we need is just a click away. Highlight how this
scenario impact business activity positively and negatively.

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3. Explain ‘greenwashing

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4. Explain the impact of international trade agreements on business.

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5. Volkswagen (VW) clean diesels – the claim that was not true.
For several years, VW claimed that the diesel cars it sold in the USA and other countries were
‘really clean’. This suggested that the diesel cars and vans it was selling were less polluting
than the products of other car manufacturers. In 2015, VW was found out. Its diesel engines
had been fitted with cheat devices to give much lower pollution levels when being tested. So,
although VW could use these test results to support its claims about clean diesels, senior VW
managers knew all along that the company had cheated the testing system. Once VW was
found out, it offered compensation to some car owners and apologized to all external
stakeholders.
VW’s corporate social responsibility policy now state that , ‘ We want to create enduring value,
provide good working conditions and handle the environment and resources with care’.
Business analyst doubt that VW’s brand image will ever fully recover from this scandal,
despite the company’s attempt to rebrand itself with a new design and colour for its VW logo.
The damaging effects of greenwashing can last for a very long time.
i) Analyse ways in which a business such as VW might attempt to re-establish an excellent
CSR reputation
ii) Evaluate the long- term impact on VW if its CSR environmental policies are thought to
be untrue or greenwashing.

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