1|Page
WSET LEVEL 4 D2 EXAM NEWEST 2026 ACTUAL
VERIFIED EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||NEWEST
EXAM!!||
List major economic factors that influence demand for
wine - Answer-- Strength of economy
- Fluctuations in currency exchange
- Changes to the market
Give examples in which the strength of economy affect
wine demand - Answer-- 2008 financial crisis: champagne
demand falls, Prosecco grew; trade wine for beer, cider
etc
- Chinese economy growing: emerging middle class
chasing aspirational wines
In what kind of market does currency fluctuation have the
most significant impact on the demand for wine? - Answer-
Price-sensitive market
,2|Page
When a wine-exporting country's currency gains value
compared to that of the importing country, what can a
producer do? - Answer-- Increase wine price and losing
sales
- Keep the price and lose profit
When a wine-exporting country's currency loses value
compared to that of the importing country, what can a
producer do? - Answer-- Lower price and boost sales
- Keep price stable and improve profits for future
investment
What is one downside of weak currency on the part of the
producer? - Answer-Costs more to import equipment and
supplies such as barrels, corks and yeast, which may
offset additional profits
How does changes to the market affect demand for wine?
- Answer-- New companies/products enter, others
disappear
- Opportunities for competition
- However, if supply is limited, price increase is possible
,3|Page
List major legislative and political factors that affect
demand for wine - Answer-- Laws prohibiting or limiting
alcohol sale
- Government policies to reduce alcohol consumption
- Taxation
- International trade
- Wine laws
Give examples of laws that limit alcohol sale - Answer--
Monopoly
- USA three-tier system
- Min drinking age
- Limit hours in the day for alcohol sale
Give examples of government policies to reduce alcohol
consumption - Answer-- France: Loi Evin in 1991, restrict
alcohol advertising
- Scottish: min unit price: GBP(75cl bottle with 12%
considered to have 9 units)
- Blood alcohol concentration (BAC)
, 4|Page
What are two impacts of taxation on wine? - Answer--
Reduce consumption
- Major venue generator for many governments
List types of taxes applied to alcoholic drinks - Answer--
Sales tax (VAT in EU)
- Specific excise duties on alcohol, payable at the point of
manufacture
- Minimum pricing mechanism
List one example in which reduced tax has boosted wine
sales - Answer-In 2008, Hong Kong abolished excise duty
on wine with the aim of becoming wine trading hub of East
Asia
What is tax on imported goods called? - Answer-Custom
duties / trade tariffs
What non-member states have entered into trade
agreements with EU? - Answer-South Africa and Chile
WSET LEVEL 4 D2 EXAM NEWEST 2026 ACTUAL
VERIFIED EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||NEWEST
EXAM!!||
List major economic factors that influence demand for
wine - Answer-- Strength of economy
- Fluctuations in currency exchange
- Changes to the market
Give examples in which the strength of economy affect
wine demand - Answer-- 2008 financial crisis: champagne
demand falls, Prosecco grew; trade wine for beer, cider
etc
- Chinese economy growing: emerging middle class
chasing aspirational wines
In what kind of market does currency fluctuation have the
most significant impact on the demand for wine? - Answer-
Price-sensitive market
,2|Page
When a wine-exporting country's currency gains value
compared to that of the importing country, what can a
producer do? - Answer-- Increase wine price and losing
sales
- Keep the price and lose profit
When a wine-exporting country's currency loses value
compared to that of the importing country, what can a
producer do? - Answer-- Lower price and boost sales
- Keep price stable and improve profits for future
investment
What is one downside of weak currency on the part of the
producer? - Answer-Costs more to import equipment and
supplies such as barrels, corks and yeast, which may
offset additional profits
How does changes to the market affect demand for wine?
- Answer-- New companies/products enter, others
disappear
- Opportunities for competition
- However, if supply is limited, price increase is possible
,3|Page
List major legislative and political factors that affect
demand for wine - Answer-- Laws prohibiting or limiting
alcohol sale
- Government policies to reduce alcohol consumption
- Taxation
- International trade
- Wine laws
Give examples of laws that limit alcohol sale - Answer--
Monopoly
- USA three-tier system
- Min drinking age
- Limit hours in the day for alcohol sale
Give examples of government policies to reduce alcohol
consumption - Answer-- France: Loi Evin in 1991, restrict
alcohol advertising
- Scottish: min unit price: GBP(75cl bottle with 12%
considered to have 9 units)
- Blood alcohol concentration (BAC)
, 4|Page
What are two impacts of taxation on wine? - Answer--
Reduce consumption
- Major venue generator for many governments
List types of taxes applied to alcoholic drinks - Answer--
Sales tax (VAT in EU)
- Specific excise duties on alcohol, payable at the point of
manufacture
- Minimum pricing mechanism
List one example in which reduced tax has boosted wine
sales - Answer-In 2008, Hong Kong abolished excise duty
on wine with the aim of becoming wine trading hub of East
Asia
What is tax on imported goods called? - Answer-Custom
duties / trade tariffs
What non-member states have entered into trade
agreements with EU? - Answer-South Africa and Chile
