TYA is a limited company that produces 300
000 cars each year. It employs 600 workers. TYA has high fixed costs. The Managing Director wants to improve efficiency in the factory. He said: «Globalisation is altering the way businesses work. Many manufacturing businesses are thinking about whether to move their operations to other countries.»
(a)[2]
Define the term “globalisation”.
(b)[2]
Identify two examples of fixed costs that do not vary with output.
(c)[4]
Outline, with reference to TYA, how a limited company differs from an unincorporated business.
(d)[6]
Explain two methods TYA could use to improve efficiency.
(e)[6]
Do you think legal controls are the most important factor for a manufacturing business when choosing the country in which to locate its operations? 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: “Growth in worldwide trade and the movement of people and capital between countries” …