South Korea’s economy was once dominated by many family-owned businesses that have now grown into large public limited companies. To help domestic firms expand, the government offered subsidies and used trade protection. From 2010, average earnings in South Korea have increased.
(a)[2]
Define what is meant by public limited company.
(b)[4]
Explain two reasons why average earnings may grow.
(c)[6]
Analyse, using a demand and supply diagram, how government subsidies enable firms to grow.
(d)[8]
Discuss whether trade protection does or does not encourage the growth of domestic firms.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Shares that can be bought and sold on a stock exchange” …