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Business Studies IGCSEPDF 208

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PDF 208

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0450/13 Cambridge IGCSE — Mark Scheme PUBLI LISHED May/June 2025 Answer Marks 3(e) Explain two benefits to a business of being a multinational company. Which benefit is likely to be the most important? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to which benefit of being a multinational company is likely to be the most important. Points might include: « Spreading risk [k] so a fall in sales / revenue in one country can be offset by an increase in sales / revenue in another country [an] « Access new / wider markets / sales / customers [k] increasing revenue / (global) market share [an] «Improve brand image / reputation [k] to help increase / maintain customers AND/OR could allow them to set higher prices / provide competitive advantage [an] « Economies of scale [k] lowering average/unit costs [an] « Cheaper / access (better quality) raw materials [k] reducing transport costs [an] OR access better quality / wider range of raw materials [k] allowing the business to produce new products [an] «Access to cheap labour [k] which can lower costs / increase profit margin [an] OR Access to skilled labour {k] which could increase efficiency [an] « Avoid import quotas [k] so no/fewer limits on the number of products the business can import into a country [an] This is a general question so there are no marks for application. Some points can be [k] or [an] but only award once. The following are [an] only: * Increase market share e Provide competitive advantage 0450/13 Cambridge IGCSE — Mark Scheme PUBLISHED May/June 2025 Answer Marks 3e) e Avoid import tariffs [k] so does not make products more expensive [an] e Reduced tax liability / benefit from favourable / lower tax rates [k] « Access government support/grants [k] Other appropriate responses should also be credited. Justification might include: One benefit is spreading risk [k] so a fall in sales in one country can be offset by sales in another country [an]. It also allows for easier access to raw materials [k] reducing transport costs [an]. Access to raw materials is likely to be the most important benefit because this could reduce production costs leading to lower prices helping the business remain competitive [eval] and ensuring the extra sales are achievable [eval]. Question Answer Marks Guidance 4(c) Using Herzberg’s theory, state whether each of the following would be classed as a hygiene factor or as a motivator: Award 1 mark per correct answer (imax 4). Working conditions: hygiene Wages: hygiene Opportunities for promotion: motivator Relationship with supervisor: hygiene Only award the first response given for each answer.