NSN is a multinational company. It makes cars. Over the years, technology has changed production methods. NSN uses just-in-time inventory control in all its factories. NSN plans to open a new factory in country Z creating 7000 jobs. Country Z’s Government has offered an $80m grant to NSN. A spokesperson for NSN said: ‘Governments should support business activity. There were also other factors that influenced our decision to build the new factory there including the possible effects of economic growth.’ Define ‘multinational company’. Identify two reasons why a government might support business activity. Reason 1: Reason 2: Outline one advantage and one disadvantage to NSN of using just-in-time inventory control. Advantage: Disadvantage: 1 2 Explain two ways in which an increase in economic growth might affect NSN’s decision to build a new factory in country Z. Way 1: Explanation: Way 2: Explanation: Do you think the ways technology has changed production methods benefits all employees? Justify your answer. [ 1 2 7115_w21_qp_11 THEORY 2021 Paper 1, Variant 1 View
The Government of country B plans to build a new airport. A Government spokesperson said: ‘There will be external costs, but I think there will be more benefits for the local community. We have to support businesses such as airlines in the private sector’. RU Air is one of the world’s most profitable airlines. RU has announced plans on its website that it will operate flights to and from country B in the future. RU is a public limited company. What is meant by the ‘private sector’? Identify two ways the Government might support RU Air and other private sector business activity (other than by building a new airport). Way 1: Way 2: Identify and explain two benefits to RU Air of high profits. Benefit 1: Explanation: Benefit 2: Explanation: Identify and explain two benefits for RU Air of having a website. Benefit 1: Explanation: Benefit 2: Explanation: Do you agree that there are likely to be more advantages for the local community from the new airport than disadvantages? Justify your answer. 7115_s14_qp_12 THEORY 2014 Paper 1, Variant 2 View