Document page
Business Studies IGCSEPDF 78
212 pagesrevision 46931
PDF 78
Page image rendered from the stored file at 110 dpi; it sharpens as you zoom. Outlines are placed from each region’s stored position on the page (612 × 792 pt).
no text layerread by OCR (tesseract5-eng@250dpi)The text layer was unusable, so the page image was read by OCR. OCR text can contain misread characters.
Source of this text: read by OCR. The better of the embedded text and OCR is kept.
me 7
4 = MHL manufactures tyres for large vehicles. It has factories in 6 countries. The business creates
external costs when producing its products. Good communication wth MHL's suppliers is important.
The Managing Director knows globalisation provides many opportunities for MHL. She is reviewing
data for one of MHL's factories as she wants to reduce the average cost of the tyres. An extract
from this data is shown in Table 4.1.
Table 4.1
Data for one of MHL’s factories
Output per month (units) 200000
Fixed costs per month $500 000
Variable cost per unit $25
(e) Explain two methods of communication a business could use to communicate with its suppliers.
‘Which is likely to be the best method to use? Justify your answer.