Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
NSN is a multinational company that manufactures cars. Over time, technology has altered production methods. NSN uses just-in-time inventory control in all of its factories. NSN intends to open a new factory in country Z, creating 7000 jobs. The Government of country Z has offered NSN an $80m grant. A spokesperson for NSN said: ‘Governments should support business activity. Other factors also influenced our choice to construct the new factory there, including the possible effects of economic growth.’
(a)[2]
Define the term ‘multinational company’.
(b)[2]
Identify two reasons why a government might support business activity.
Reason 1 (first reason):
Reason 2 (second reason):
(c)[4]
Outline one advantage and one disadvantage for NSN of using just-in-time inventory control.
One advantage:
One disadvantage:
(d)[6]
Explain two ways in which an increase in economic growth might affect NSN’s decision to build a new factory in country Z.
Way 1 (first way):
Explanation:
Way 2 (second way):
Explanation:
(e)[6]
Do you think the changes technology has brought to production methods benefit all 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: “A business that has factories, production or service operations in more than one country” …