Business 7115 · O Level · Production of goods and services
Production of goods and services — practice question
NSN is a multinational company. It manufactures cars. Over time, technology has altered production methods. NSN uses just-in-time inventory control in every factory. NSN plans to open a new factory in country Z, which will create 7000 jobs. Country Z’s Government has offered NSN an $80m grant. A spokesperson for NSN said: ‘Governments ought to support business activity. Other factors also influenced our choice to construct the new factory there, including the possible impact of economic growth.’
(a)[2]
Define the term ‘multinational company’.
(b)[2]
Identify two reasons why a government may back business activity.
(c)[4]
Outline one benefit and one drawback to NSN of using just-in-time inventory control.
(d)[6]
Explain two ways that higher economic growth could influence NSN’s decision to build a new factory in country Z.
(e)[6]
Do you think the changes technology has brought to production methods benefit every employee? 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 carries out factory, production, or service operations in more than one country” …