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Business Studies · May / June 2016 · Paper 12 · Question 4

7115

As printed in the paper

The question as text

KLG is based in country X. It specialises in making electrical parts which it sells to washing machine manufacturers in country X. The Managing Director is planning to relocate to country Y, which is a low-cost country. She said: ‘This will allow us to pay employees low wages for working long hours as there are few legal controls on employment and health and safety. KLG cannot be both ethical and profitable. Changes in exchange rates and import tariffs might cause us problems when we start exporting.’

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Show the answer and mark scheme
  • 4(a)[2]

  • 4(b)[2]

  • 4(c)[4]

  • 4(d)[6]

  • 4(e)[6]

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