In 2017, two companies in China's chemical sector merged. This produced the world's largest chemical group, with revenue of roughly US$100 billion. The chief purpose of this merger was to dominate the domestic chemicals and fertilisers market by setting up a monopoly. The resulting business is a multinational company (MNC) because it also manufactures in other countries, including Italy and Switzerland.
(a)[2]
Define the term industry.
(b)[4]
Explain two forms of integration (merger).
(c)[6]
Analyse the advantages enjoyed by an MNC over a firm that only produces in its home country.
(d)[8]
Discuss whether an economy does or does not benefit from firms that are monopolies.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Businesses making the same product” …