An ever-growing number of Pakistani firms are hiring managers who studied at the country’s universities. Pakistan’s universities are also raising the number of entrepreneurs in the country. Each entrepreneur and each manager confronts a range of challenges, including obtaining finance, sometimes through borrowing. Some entrepreneurs and managers also bargain with trade unions. These organisations can affect a country’s economic growth rate.
(a)[2]
Identify two risks that entrepreneurs must bear.
(b)[4]
Explain two reasons why firms might choose to employ local managers instead of foreign managers.
(c)[6]
Analyse why households and firms may take out more borrowing during periods of rapid economic growth.
(d)[8]
Discuss whether the actions of trade unions are likely to raise or lower a country’s economic growth rate.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A competitor launching a superior product” …