Business 7115 · O Level · Business and the international economy
Business and the international economy — practice question
Alkin is a multinational company. It produces breakfast foods, including many leading cereal brands. Alkin intends to begin selling in country Z, which is a rapidly growing market. Alkin plans to set up a joint venture with a local business based in country Z. ‘Effective communication will be important to our success but I think there are many advantages in expanding this way’ said Alkin’s Managing Director. The Government of country Z is concerned about the impact of multinational companies such as Alkin on consumers.
(a)[2]
What does the term ‘multinational company’ mean?
(b)[2]
What does the term ‘brand’ mean?
(c)[4]
Identify and explain two reasons why effective communication could matter for Alkin.
(d)[6]
Identify and explain two advantages to Alkin of using a joint venture to expand into country Z.
(e)[6]
Do you think the Government in country Z is right to worry about how multinational companies such as Alkin affect consumers? 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 / beyond its usual area of operation” …