Business 0450 · IGCSE · Business and the international economy

Business and the international economy — practice question

FXN makes mobile phones. It operates as a multinational company. FXN is intending to construct a new factory in country Y. One reason for this is the government of country Y’s decision to bring in import quotas. The Managing Director stated: ‘The new factory will create 1200 jobs and help reduce unemployment in country Y. FXN will begin the recruitment process as soon as a decision has been reached about an appropriate site for the new factory’.
(a)[2]

Define the term ‘import quota’.

(b)[2]

Identify two advantages for a country of having lower unemployment levels.

(c)[4]

Identify four possible disadvantages for a country of having a multinational company located there.

(d)[6]

Explain two factors FXN should take into account when deciding on a suitable location for the new factory.

(e)[6]

Do you think a recruitment website, which advertises jobs, is the best way for a business to recruit a large number of employees? 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: “Cap on the number or amount of goods that may be imported into a country” …

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