Business 0450 · IGCSE · Business and the international economy
Business and the international economy — practice question
Globalisation has transformed the way many businesses work. VKW manufactures cell (mobile) phones. It operates just-in-time inventory control. VKW sends 40% of its products abroad. To help keep total costs lower, it imports most of its raw materials. Every one of VKW’s 800 employees understands how important quality assurance is. The Operations Director has instructed all suppliers to make sure that child labour is not used. She is also worried that many governments intend to tighten import controls such as quotas.
(a)[2]
Define the term ‘globalisation’.
(b)[2]
State two advantages for a business of applying quality assurance.
(c)[4]
Outline two effects that increased import controls could have on VKW.
(d)[6]
Explain one benefit and one drawback to VKW of using just-in-time inventory control.
(e)[6]
Do you think businesses should be concerned about ethical issues such as child labour? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Countries linked together through trade in goods and services” …