DLT makes cups and plates in country X. Its factory operates with flow production and employs 75 workers. The Human Resources Director is aware that employment is controlled by many legal rules. DLT sells 30% of its output to country Y, where it enjoys lower taxation rates and no import quotas. The Managing Director is thinking about moving the factory to another area of country X in order to satisfy the higher demand for exports.
(a)[2]
State what is meant by ‘import quota’.
(b)[2]
Identify two advantages to a business of lower rates of taxation.
(c)[4]
Identify four legal controls governing employment.
(d)[6]
Explain one reason why DLT must consider each of the following factors when deciding where to relocate in country X:
Suppliers.
Suitability of land.
(e)[6]
Do you think the advantages to a manufacturing business of using flow production are greater than the disadvantages? 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: “A fixed limit on the number / amount of goods that can be brought into a country” …