Cambridge AssessmentInternational EducationCANDIDATENAMECENTRECANDIDATENUMBERNUMBERBUSINESS STUDIES0450/12Paper 1 Short Answer and Data ResponseFebruary/March 20231 hour 30 minutes63You must answer on the question paper.No additional materials are needed.INSTRUCTIONSAnswer all questions.Use a black or dark blue pen.You may use an HB pencil for any diagrams or graphs.Write your name,centre number and candidate number in the boxes at the top of the page.Write your answer to each question in the space provided.Do not use an erasable pen or correction fluid.Do not write on any bar codes.You may use a calculator.INFORMATION.The total mark for this paper is 80.The number of marks for each question or part question is shown in brackets ]This document has 12 pages.Any blank pages are indicated.03_0450_122023_1.13©UCLES2023[Turn over21 HCB manufactures cars in country X.It has 200 employees working in its factory.The businesshas changed its method of production due to new technology.HCB's Managing Director isconsidering ways to become more ethical.She is aware that other businesses in country X havestarted to import cars.The interest rate in country X has increased due to rising inflation.(a)Define 'inflation'.(b)ldentify two ways technology could change production methods(c)Outline two ways HCB could become more ethical.Way 2[4©UCLES202303_0450_12_2023_1.133(d)Explain two ways HCB could be affected by an increase in the interest rate in country X.Explanation:.Explanation:(e)Do you think manufacturing businesses will always benefit from the introduction of importtariffs?Justify your answer.©UCLES202303_0450_12_2023_1.13[Tum over