TYA is a limited company that produces 300000 cars each year and employs 600 workers. It has high fixed costs. The Managing Director wants to raise factory efficiency. He commented: ‘Globalisation is altering the way businesses work. Many manufacturing businesses are now deciding whether to move their operations to other countries’.
(a)[2]
Define the term ‘globalisation’.
(b)[2]
Identify any two examples of fixed costs.
(c)[4]
Outline, with reference to TYA, how a limited company differs from an unincorporated business.
(d)[6]
Explain two methods TYA could adopt to improve efficiency.
(e)[6]
Do you think legal controls are the most important factor for a manufacturing business when choosing which country to locate its operations in? 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: “Rising worldwide movement of goods, services, people and capital between countries” …