Business Studies 0450 May / June 2022 Paper 22 Question 4

4(a) Explain four effects of training on a business. Award 1 mark for each relevant reason (maximum of four). Award a maximum of 1 additional mark for each explanation. There are no application marks available for this question. Relevant effects might include: Greater motivation of employees…

Business Studies · May / June 2022 · Paper 22 · Question 4

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4(a)[8]
Explain four effects of training on a business. Award 1 mark for each relevant reason (maximum of four). Award a maximum of 1 additional mark for each explanation. There are no application marks available for this question. Relevant effects might include:
Greater motivation of employees – work harder to produce output
More flexible workforce – employees can be moved between tasks as necessary
Increased productivity/efficiency – lower unit costs
Quality of the product may be improved – greater customer satisfaction / improved brand image / improved reputation
Employees able to use new technology – easier to introduce new equipment to speed up production
Improves customer service – if trained how to answer customer queries
Fewer mistakes as employees are trained – less waste/less repair costs
Workforce is more knowledgeable/skilled – able to complete tasks more effectively
Output lost whilst training employees – higher costs
Employees may expect higher pay increasing wage costs as a result of being trained – lower motivation if pay is not increased
Training costs are incurred by the business – higher costs for the business may lead to lower profit initially
Employees may leave the business after they have been trained – therefore increases recruitment costs For example: The business will have a more flexible workforce (1)
this means when an employee is absent another employee can be moved to cover their task without production being halted (1).
4(b)[12]
Consider the benefits and drawbacks for country Z if TT builds a factory there. Do you think the government of country Z should allow TT to build this factory? Justify your answer. Level Description Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of both the benefits and drawbacks for country Z. Well-justified conclusion. Candidates discussing in detail both the benefits and drawbacks for country Z, in context and with a well- justified conclusion including why the alternative benefits or drawbacks were rejected should be rewarded with the top marks in the band. 9–12 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one benefit or drawback for country Z. Judgement with some justification / some evaluation of choice made. Candidates discussing in detail both benefits and drawbacks for country Z and applying these to the case should be rewarded with the top marks in the band. 5–8 Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the benefits and/or drawbacks with little/no explanation. Simple judgement with limited justification / limited evaluation of choice made. Candidates outlining the benefits and drawbacks for country Z in context should be rewarded with the top marks in the band. 1–4 No creditable response. Relevant points might include: Benefits Drawbacks
It creates jobs – lowering unemployment as it has been rising in country Z – raising incomes in the country and helping to increase economic growth/GDP
Increased investment – the new factory will create jobs to build it and new infrastructure may be built also benefiting local businesses
TT could export from county Z – improving its balance of payments – earns foreign currency for country Z to purchase more imports
TT may pay taxes to the government – increases tax revenue to provide more services for its population of 200 million
Increased consumer choice – more competition and more toys available to buy and the new toy is unique
The jobs created may be unskilled and low paid
There may be reduced sales for the three local toy businesses as their costs may be higher
Profits may be sent back to country Y – loss of government tax revenue in country Z
Scarce resources may be used up quickly by the multinational business leaving few non- renewable resources remaining when the multinational has left
The multinational business could have a lot of political influence and gain concessions such as grants that could have been spent on local businesses
Increased noise and air pollution when the factory is being built – may cause damage to the environment and health of the local population Conclusion:
Allowing TT to locate in the country has more benefits for country Z than it has drawbacks. The jobs created when unemployment is increasing will help the country develop and may benefit from a technology transfer from TT to other businesses in the country. This may increase their efficiency and improve their productivity – so many other local businesses may benefit which outweighs the drawbacks to the three local toy companies that may not be able to compete with TT.
The government in country Z should not allow TT to build a factory there as it may not gain tax revenue if the government of country Z has to make concessions to attract TT to locate there. As TT’s production is quite automated few jobs will be created and these may not increase incomes much so there will be little gain to the economy.

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