Business 0450 · IGCSE · Business and the international economy
Business and the international economy — practice question
SJD operates in the private sector and produces steel for construction businesses. It intends to make 3500 of its 9000 employees redundant. The Operations Director commented: ‘Cheap steel imports and high business tax rates are harming our business. We also face ethical issues that need a response. The Government ought to do more to support steel producers. Some rivals are planning to shut their factories and move to other countries. SJD may have to follow the same course.’
(a)[2]
Identify two circumstances where downsizing the workforce could be necessary.
(b)[2]
Identify two ethical issues that SJD could need to address.
(c)[4]
Identify and explain two possible problems that SJD may face if it relocates its business.
(d)[6]
Explain how each of the following factors could affect SJD’s business: High business tax rates; Cheap imports.
(e)[6]
Do you think the Government should support businesses such as SJD? 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: “Automation / new technology introduced” …