Business 7115 · O Level · Business and the international economy
Business and the international economy — practice question
SJD works in the private sector. It manufactures steel for construction firms. SJD plans to make 3500 of its 9000 employees redundant. The Operations Director said: ‘Cheap steel imports and high business tax rates are harming our business. There are also ethical issues that we must deal with. The Government should do more to support steel producers. Some of our competitors intend to shut their factories and move to other countries. SJD may need to do the same.’
(a)[2]
Identify two circumstances in which it may be necessary to reduce the size of the workforce.
(b)[2]
Identify two possible ethical issues that SJD may need to respond to.
(c)[4]
Identify and explain two possible problems for SJD if it chooses to relocate its business.
(d)[6]
Explain how each of the following factors could affect SJD’s business.
Elevated business tax rates.
Low-cost imports.
(e)[6]
Do you think the Government should help businesses like SJD? 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: “introduction of automation / newer technology” …