Edexcel igcse business studies student book pdf

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Edexcel IGCSE Business Studies Student. Book provides complete coverage of the Edexcel IGCSE Business Studies specification, so you can be sure you and. Edexcel International GCSE Business Studies Student Book provides complete coverage of the Edexcel International GCSE Business Studies specification. Here is the link to the Edexcel IGCSE Business Studies Activebook along with answers. Enjoy.:D.

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Edexcel International GCSE Business Studies Student Book provides complete coverage of the Edexcel International GCSE Business Studies specification, so you can be sure you and your students have all the material you need. The Student Book's attractive, full-colour design and. content and explains how to raise the achievement of your students. The guide: . The Edexcel International GCSE in Business Studies requires students to: .. Textbook. Case studies. Worksheets. 1. Business Activity and the Changing. Edexcel IGCSE Business Studies Answers - Free download as PDF File .pdf), Text File .txt) or read online for free. answers.

However, it is more than likely that customers would use it to record complaints about the quality of customer service perhaps. This increase in emissions from transportation does support the view that a cap should be placed on carbon emissions. Waiting times for heart bypass operations have halved from 14 to seven weeks over the same period. We comply with all environmental legislation. It is hard work running a business and without all of these skills business owners often fail. Most banks now offer online banking services.

Managers will also be adversely affected because managerial salaries are to be reduced. However, it could be argued that as a result of this action the job security of the remaining employees and managers will be protected.

Chapter review SurgiCo SurgiCo make producer goods. Businesses provide a wide range of goods and services. Some businesses concentrate on producing products for consumersordinary people. These are called consumer goods. Products sold by one business to another are called producer goods. SurgiCo designs and manufactures surgical instruments.

These are producer goods because they are sold to other business organisations hospitals not consumers. SurgiCo is a private sector business. Businesses are either private sector or public sector organisations. This means that it is owned by an individual or group of individuals. The people who own SurgiCo are free to run the business according to their own methods.

Businesses are more likely to be successful if they satisfy peoples needs and wants. Needs are the basic requirements for human survival. Some of these needs are physical and include water, food, warmth, shelter and clothing.

If these needs cannot be satisfied humans would cease to exist. Arguably, SurgiCo produce products which satisfy needs rather. They make surgical instruments which are used by surgeons when carrying out minimal invasive surgery. Their products will help surgeons reduce suffering and save lives. Business Studies d Identify two stakeholders in SurgiCo. Any two from: Most businesses operate in a changing business environment.

This means that they may be affected by external factors which are likely to change over time. Such factors include the strength of competition, the economic climate, government legislation, population trends, demand patterns, world affairs and social factors.

In this case, SurgiCo might be affected by cuts in government expenditure for example. These are often planned by governments in all parts of the world to help reduce government debt. Such cuts might reduce the demand from government-funded hospitals for SurgiCos products. To survive, businesses such as SurgiCo must produce goods and services that satisfy customer needs. They must have clear objectives and recognise that the changing environment can bring both new opportunities and impose new constraints.

SurgiCo is a private enterprise. The company aims is to be the worlds leading supplier of high quality, cost-effective instruments.

However, in the private sector businesses try to make a profit for their owners. In contrast, the hospitals supplied by SurgiCo are likely to be public sector enterprises. Public sector organisations do not normally aim to make a profit. They have other objectives such as improving the speed and quality of services or improving the duty of care. In the UK, hospitals often have targets to achieve. For example, they may aim to bring down the amount of time patients have to wait when attending the accident and emergency unit.

The owners want to raise profit from , to , Bahraini Dinars. It has been hit by the recession and made a huge loss of million in There has been a decline in the number of passengers travelling by air.

It will ground aircraft, slash seat numbers and postpone buying 12 A superjumbos. BA also said it was cutting its summer capacity by 3. Thomas Cook is aiming to grow. In its strategy for the future it states that the company hopes to grow overall revenue and profit. The company might also be aiming to be the market leader. It says in the case that Thomas Cook is number one or number two in its core markets. There is nothing in the case to suggest that Thomas Cook is trying to improve its image or reputation.

However, Thomas Cook has over 22 million customers and it will not want to lose any of them due to a decline in the companys image or reputation. It is reasonable to assume that such a company will take measures to protect is image and reputation by ensuring that public relations is positive. Question 2 a What objectives are set by public sector organisations? Use examples from this case. Objectives in the public sector tend to focus on improving the quality of customer service.

Evidence in this case supports this view. The NHS in England has officially hit its target to treat patients within a maximum of 18 weeks from referral by their GP.

The Department of Health said the average wait for treatment for admitted patients is now 8. For example, waiting times for cataract removal operations have halved from 20 weeks in March to 10 weeks in January Waiting times for heart bypass operations have halved from 14 to seven weeks over the same period.

Reducing waiting times in the NHS is a way of improving the quality of service. In the private sector most businesses aim to make a profit. However, in the public sector profit is not an objective. One reason why the NHS does not aim to make a profit is because the majority of its services are provided free to patients at the point of delivery.

The provision of health services is funded from taxpayers money. Chapter review Boston Pizza International a What is meant by a business objective? Use this case as an example. Businesses have objectives. The objectives of a business are the goals or targets which the business wants to achieve. In this case one of Boston Pizzas objectives is to grow the business.

This is suggested by the fact that the company has grown sales revenue by an average of 5. A mission statement is a description of the purpose of a business.

In this case, the purpose of Boston Pizza is to become a world-class franchisor through selecting and training people to manage an outstanding foodservice business profitably. Mission statements are often directed at stakeholders such as customers, employees and shareholders. The purpose of mission statements is to help a business to focus.

The mission statement outlines the general aim of the business and reminds employees about what they are expected to achieve. A mission statement may also provide a plan for the future of the business and make clear to all stakeholders what the business is trying to achieve.

It is suggested that BPI is concerned about is image and reputation. In recent years a growing number of businesses have been keen to improve their image and develop a good reputation. For example, Boston Pizza have taken into account the needs of the environment, customers, the local community and. Business Studies employees when making business decisions. In this case, Boston Pizza has donated money to charities and won awards such as Franchisor of the Year This suggests that the company is proud of its achievements and wants to foster a good public image.

If a business has a bad image or poor reputation it may lose customers. Generally, businesses are more likely to be successful if they set goals or objectives. One specific reason is that people in businesses such as Boston Pizza need something to work towards. Goals help to motivate people. For example, franchisees might get bonus payments if they reach certain sales targets. Another reason is that without aims and objectives franchisees might not have the spark needed to keep the business going.

They might lose grip and allow their franchise to drift. This might result in the failure of the business. Setting goals also helps to decide where to take a business and what steps are necessary to get there. For example, if Boston Pizza aims to grow the franchise operation, it might decide that launching it abroad might be an appropriate course of action.

Finally, it is easier to assess the performance of a business if objectives are set. If a business achieves its objectives it could be argued that the business has performed well.

For example, if Boston Pizza aimed to grow by 5 per cent each year it will have exceeded its objective and can be considered to have performed well. This is because the company has grown by an average of 5.

Luke Burger is the sole owner of Lukes Kaffeestrube. They are business partners. One advantage of owning a business with someone else is that more money can be raised when setting up. The burden and responsibility of running the business can also be shared.

One major disadvantage is that the profits have to be shared by the partners. Business owners have to take risks. In both these cases the owners had to risk their own money when setting up and running the business.

Luke had to pay 20, Namibian dollars when he bought the disused bakery and spent a further 50, dollars later to redecorate the cafe.

Question 1 a Use this case study as an example to explain what is meant by a partnership. A partnership exists when between 2 and 20 people share the ownership of a business. In this case, Mirza and Associates is a small firm of solicitors and there are four partners in the business.

All the partners share the cost and responsibilities of running the business. The profits will also be shared by the partners. Business Studies b How does this case illustrate one of the main advantages of partnerships?

One of the main advantages of a partnership is that partners are likely to have different skills and by specialising they can offer clients a wider range of services. The partners in this business each specialise in a specific area of law.

Salim Hussain is an expert in property law and deals with property ownership disputes. Tariq Zaman deals with tax and corporate matters for business clients. Nasir Ahmed deals with wills. Finally, Mirza is responsible for the administration of the partnership and deals with criminal cases. Question 2 a How do franchisors make money? Use this case study as an example. Franchisors allow other business operators franchisees to trade under their name.

They make money by making a charge. There is likely to be an initial start-up fee and then a regular payment from sales each year. One of the main advantages of taking out a franchise is that risk is reduced. The franchisee is taking on a tried and tested business idea. Another advantage is that the franchisor gives a range of support. Another advantage of operating a franchise is that start-up costs are predictable. This makes budgeting easier.

People who set up businesses are often called entrepreneurs. They are the business owners and without these people businesses would not exist in the private sector. They come up with a business idea, invest their own money and get a business started. Innovation Decision making Organising Risk taking Sole traders are unincorporated businesses.

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Some businesses are unincorporated. This means there is no legal difference between the owner and the business. Everything is carried out in the name of the owner or owners.

These businesses tend to be small and owned by one or a small group of people. Marek Jonata is a sole trader and runs an unincorporated business. Operating as a sole trader Marek has unlimited liability. All sole traders have unlimited liability. This is very important because it says something about the risk taken by sole traders.

It means that if the business collapses a sole trader is liable for all the business debts. The owner can be forced to. Business Studies meet these debts from personal wealth. It means that a person can actually lose more than was originally invested in the business. This case highlights one of the main problems with sole traders. It is often difficult to expand because finance is short. Marek wants to buy a new boat to increase capacity and make more money.

However, he cannot afford it alone and banks are not prepared to lend him the money. One option is to join forces with a business partner. There are some advantages when operating as a partnership.

First, it is possible to raise more finance. In this case Marek needs more finance and has found a colleague willing to invest. Partnerships are also easy to set up because there are no legal formalities. The burden of running the business is shared and partners may be able to specialise. However, there are some disadvantages. All the profit made by the business has to be split between the partners.

There is also the possibility that partners may disagree about the way the business is run. This might result in the partners falling out. Also, any decision made by one partner in the business is legally binding on all other partners even if they did not know about it.

It is also worth noting that partners have unlimited liability and tend to be quite small businesses because there is still a limit to how much finance can be raised. Marek might be well advised to take on the business partner. Although he has reservations, presumably due to the disadvantages of operating as a partnership, he is not likely to be able to afford the new fishing boat on his own.

If Marek is worried about the partnership arrangement it might be wise to draw up a Deed of Partnership to help clarify the rights of the partners. This might help to reduce the chances of disagreement. Use examples from the case studies. For example, in the case of Airport to Hotel half of the shares are owned by Hong Kong-based Unifol International, a group of investors. The other half are owned by Paul Stanyer. Also, according to information in the case the Bank of East Asia is owned by shareholders.

There is no information about the directors of Airport to Hotel. Evidence in the cases suggests that limited companies are significantly bigger than sole traders and partnerships. For example, Airport to Hotel turned over 8.

Not may sole traders would enjoy this revenue. The Bank of East Asia is very large. Question 1 a Who controls the Bestway Group? Bestway is a private limited company which means it is owned and controlled by the shareholders.

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The majority of the company, 66 per cent, is owned by Sir Anwar Pervez and his family. The rest of the company, 34 per cent, is in the hands of managers. Therefore, Sir Anwar Pervez and his family are able to control the company because they have the majority of the shares. Business Studies Private limited companies such as Bestway enjoy a number of advantages.

One significant advantage is that Bestway cannot be taken over by outsiders. This is because the shares are not on open sale.

Shares in private limited companies cannot be transferred without the consent of the other shareholders. They cannot be bought on the stock market. Only shares in plcs can be traded on the stock market. Therefore, Bestway is safe from predators. Another advantage is that all of Bestways shareholders have limited liability.

This means that they can only lose the amount of money they originally invested in the company if it were to collapse. Bestway shareholders cannot be made to use personal wealth to pay off business debts. Limited liability means they enjoy legal protection from business creditors. Question 2 a Using this case as an example, explain what is meant by a joint venture.

A joint venture is where two or more companies share the cost, responsibility and profits of a business venture. They plan to manufacture cars and engines in China from They will both invest m in the venture and build a large production plant in Hunan province.

There are a number of advantages of joint ventures. They allow companies to enjoy some of the advantages of mergers, such as growth of turnover, without having to lose their identity. For example, in this case, Fiat and GAC will still continue trading as companies in their own right. Businesses can specialise in a particular aspect of the venture in which they have experience. For example, Fiat might provide the expertise in car manufacturing while GAC may provide a good distribution network for the vehicles.

The names of private limited companies end with Limited or Ltd. Therefore Nathans Home Offices Ltd is clearly a private limited company.

Also, the business has a number of shareholders. These include Nathan and other family members. A Memorandum of Association gives important details about the company.

Examples include the name of the company, the name and address of the companys registered office, the objectives of the company and the scope of its activities and the amount of capital to be raised and the number of shares to be issued. When going public a company is likely to publish a Prospectus. This advertises the company to potential investors and invites them to buy shares before a flotation.

It is a promotional document but the information it contains must be legally accurate. Share issues have to be underwritten. There is a chance that when going public some of the shares put up for sale will remain unsold.

To overcome this problem an underwriter is paid a fee to buy up any unsold shares. It is like an insurance policy. Going public can be expensive because of the number of costs involved. These include legal costs to ensure that the.

Business Studies prospectus is legally correct. Lawyers have to read and analyse all the information in the prospectus to ensure that potential investors will not be misled. There are the costs of printing and circulating the prospectus and also an administration fee which must be paid to a bank for processing all the share applications. There are also underwriting, advertising and administrative expenses. Nathan Edwards wants to convert his private limited company into a public limited company.

Therefore, he would need to go public. Going public is a way of raising large amounts of money. Another advantage is that Nathans business may be able to exploit economies of scale if it is much larger. There might be significant purchasing economies when buying office furniture from suppliers, for example.

The new company, homeofficeplus. Public limited companies have a higher profile than any other form of business organisation and as a result they may have more recognition which might boost sales. This would be important when expanding into the whole of Eastern Australia and launching a new service. However, Nathan should consider the disadvantages before making his final decision.

Public limited companies are more tightly regulated to protect investors. They also have to publish more detailed financial information which competitors might see. Nathans business could also be taken over by another company because shares can be bought by anyone. This is the largest possible market because a firm hopes to sell its products to consumers in all countries in the world.

It is suggested that the US is becoming less important in the global car industry. But from the s, their market share fell as Japan entered the global market. Now their share of their home market in the US has declined dramatically as new, leaner producers like Toyota have entered the market. GM and Ford are cutting thousands of jobs and closing plants, while Toyota is building one new plant each year. Toyota is worth 10 times as much as GM and is now the worlds largest carmaker.

Figure 5. On the other hand, in Asia, more cars are produced than are sold. The US has lost its dominance in the global car industry.

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One reason why car production might be rising in Asia is because labour costs are so low in this region. International car manufacturers might be locating an increasing number of car plants in Asia to help reduce their production costs.

Question 1 HSBC is a multinational. Multinationals are large and powerful corporations. They sell goods and services into global markets and have production. Business Studies plants and other operating facilities all over the world. In this case, HSBC is one of the largest banking and financial services organisations in the world. In , the turnover of HSBC was nearly 50 billion and over , people were employed across the world.

HSBC is clearly a multinational. In common with many other banks, HSBC offers an online banking service. Most banks now offer online banking services. This means that people can carry out banking transactions using their own computers. Online banking will help companies like HSBC reach global markets. This is because customers can access their accounts anywhere in the world. Customers do not necessarily have to live in the country where they opened an account.

Banks like HSBC can also advertise their services cheaply on the internet to a global market. Question 2 a How might the following benefit from Coca-Cola locating a bottling plant in their country? Residents often benefit when a multinational such as Coca-Cola locates a production facility on its doorstep. For example, in this case locals will benefit from jobs created in the large bottling plant.

Local suppliers are also likely to get work when a multinational invests in a project. The extra output and employment resulting from new business developments will increase economic growth and may raise living standards for people in these countries. Multinationals such as Coca-Cola have to pay taxes and other fees when building plants and running operations abroad.

Also, the output generated by a multinational in a foreign country is recorded as output for that country. Therefore, if this output is sold out of the host country it is counted as an export. This helps less developed countries to increase their foreign currency reserves. Chapter review Newmont Mining Corp a What is meant by a multinational? A multinational is a large business organisation which has production and other operating facilities in several different countries in the world. The company also employs approximately 34, employees worldwide.

By selling in different markets all over the world, multinationals can boost their sales. This is an increase of nearly 50 per cent. The shareholders may have benefited from this because profits and dividends may have been higher.

Economies of scale Marketing d How has Indonesia benefited from Newmonts business ventures in the country?

Countries may benefit from multinationals setting up plants in many ways. Business Studies taxes and other fees to the government. Sometimes, multinationals can have a negative impact on countries. In this case, some workers lost their lives in the mines which suggest that health and safety standards may have been low. There was also contamination of lakes in Sulawesi, a loss of water for farming and damage to forests in Sumbawa.

Also, in March , a number of protestors were shot by police near the site of one of Newmonts mines. The protests centred on Newmonts exploration activities in forests by the main mine site on Sumbawa. Local people want the company to leave and say that exploration has brought environmental damage and loss of livelihood.

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They have been prevented from going into the forests to collect honey, candlenut and palm sugar. The water supply has decreased, and crops such as rice, squash and cucumber have failed because of a drought. Clearly, in this case, Newmont Mining Corporation has had both a positive and a negative impact on Indonesia.

Chapter 6 Getting started Marco Valdez is happy operating as a sole trader. He likes the independence of operating as a sole trader. He has no real desire to expand and therefore does not need to raise any more capital. Cemex is a large multinational. It is a global building materials company serving customers and communities throughout the Americas, Europe, Africa, the Middle East, Asia, and Australia.

Cemex could not operate as a sole trader. The company has grown steadily over the last years and no doubt has needed injections of capital to fund this growth. There is no way a sole trader could provide funding on such a scale.

Mutlinationals need to be plcs to attract funding and enjoy a high international profile. The main reason why businesses need to change their legal status as they grow is to attract funding. Businesses will find it very difficult to grow as a sole trader or partnership. They are considered too risky for many investors and often struggle to raise finance. Businesses usually have to raise money by selling shares to become large operators.

Chapter review ADgirlsports. Most small businesses when they start are sole traders. Provided large amounts of money are not needed, this type of organisation is suitable because it is easy to set up and the owner is in complete control. Amanda said When I started, I started small, operating from home, and never needed outside funding, so being a sole trader seemed the simplest option. However, she needed money for premises, stock and marketing.

Also, after a few months there was a strain on cash flow. Therefore she decided to take on her best friend as a partner. It is a legal document and states clearly the rights of the partners. In this case, Amanda did not draw up a Deed of Partnership and she suffered as a result when her partnership was dissolved.

In her own words Amanda said I was a fool really. I should have drawn up a Deed of Partnership to clarify everything in case we disagreed. Amanda formed a private limited company after the break-up of the partnership. After the break-up of the partnership Amanda was right to form a private limited company. This type of organisation helped Amanda to achieve her objectives. Amanda now has control of the business.

This is because she has 51 per cent of the shares. Her mother bought 29 per cent and she allowed two of her best staff to buy the remaining 20 per cent. However, with 51 per cent no-one can overrule her. Amanda sold shares to her employees to raise more money for the business. However, another reason was because she wanted to reward them for their loyalty and keep them motivated.

Finally, Amanda needed more capital to expand the business. Some of the money raised from selling shares was used to set up an online business.

Going public is a big step for a business. It is an expensive move because of the costs involved such as producing a prospectus, administration, legal costs and underwriting fees. There is also the danger that trading as a plc means anyone can buy shares in the company. This means that an outsider could take over the company. The business would also have to disclose more financial information to the public and meet the cost of stock market regulation.

However, Amanda has a firm objective. She wants to take the business to the next stage of development. Her online business is expanding fast and Amanda also thinks she could develop a small chain of shops. A major sports retailer has recently put a number of stores up for sale. By going public Amanda could raise this sort of money and achieve her objective.

She could grow more slowly and fund growth from profits. She may be able to borrow money from banks. Alternatively she may be able to persuade some other entrepreneurs to invest in her business. All these options would need to be considered before she finally decided to go public. However, if a flotation was successful, it would allow Amanda to achieve her objective. In this case study JCB use resources such as metal, glass, paint and a wide range of components such as engines, braking systems, control systems and hydraulic units.

The company will also employ workers such as assembly workers, engineers and office staff. Machinery such as a laser cutters, presses, drills, paint sprayers will be used in the factory. JCB will also use energy such as gas and electricity. NB Any four are acceptable there may also be many others. JCB probably uses a lot of machinery in its production processes.

JCB has a reputation for innovation and high quality products. It has some of the finest engineering facilities across the globe. This suggests that the company relies heavily on production methods that use hi-tech machinery.

Business Studies Examples of capital used by Alonso which are mentioned in the case include the seater coach, mobile phones, office furniture and a computer. NB Any two of these are acceptable there may be others.

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Alonso Cortez is an entrepreneur. Entrepreneurs are responsible for setting up and running small businesses. Alonso has set up a bus company to provide a passenger transport service from Madrid city centre to the airport.

This was his idea and he owns the business. This is a feature of entrepreneurship. Alonso has also taken some risk. He has invested 40, of his own money. If the business is not successful he stands to lose some, or all, of this money. Alonso also organises other production factors. He has purchased some capital and hired two drivers to help him out.

Question 2 a What is meant by the division of labour? Use an example from this case study. Workers are likely to specialise in certain tasks and skills. This is called the division of labour and allows people to concentrate on a limited range of tasks. The three workers for Dublin Construction Company are all specialists.

They all focus on one particular job for the company.

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Brendan is a bricklayer, Mary is an electrician and Ahab is a plumber. Each of them possesses specialist skills which are needed to do their jobs. These have taken time to develop. Dublin Construction Company will benefit from employing specialists. When people specialise their productivity is higher. This is because the quality of work is likely to be better. They focus on the same limited range of tasks or skills and become. Specialist workers are usually better trained and more experienced in the specific tasks they undertake.

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This means the company can operate more efficiently and offer customers a higher level of workmanship. Chapter review Dragon Toys a What is meant by production?

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Production involves converting resources into goods or services. These goods and services are provided to satisfy the needs and wants of people. In this case, production involves using a factory, plastic, a moulding machine, other components and workers to produce plastic toys for children. Yang Chen is an entrepreneur. Without entrepreneurs businesses like Dragon Toys would not exist.

Entrepreneurs are the business owners. In this case study, Yang Chen came up with the business idea to produce small plastic toy tractors using a simple moulding machine. Yang Chen is the sole owner of Dragon Toys. He is in complete control of the business and is responsible for its direction. Entrepreneurs are also risk-takers. They risk their own money in a venture. When he first set up the business there was a chance that Dragon Toys would not succeed in which case Yang Chen could have lost some, or all, of his money.

Finally, entrepreneurs are responsible for organising. Yang Chen will have to buy and hire resources such as raw materials, tools, equipment and labour. He will also need to use skills such as decision-making, people management, time management and financial judgment to organise resources effectively. Dragon Toys has a factory which is located on a plot of land.

However, the main material used is plastic, which is an oil-based material. Other components used when producing pedal tractors might be made of metal. NB Any two of these are acceptable there may also be many others.

Business Studies d What might be the drawbacks of labour specialisation at Dragon Toys? At Dragon Toys workers are likely to specialise in certain tasks and skills. This is called the division of labour. It allows people to concentrate on a limited range of tasks and helps to improve efficiency in the business.

However, specialisation does have drawbacks. For example, work can become tedious and boring because of repetition. This may be the case at Dragon Toys. This is because operating moulding machines may not be very interesting. Once trained, the workers may find the job boring. Also, when one stage of production depends on another, there may be delays if one stage breaks down.

For example, if the moulding machine breaks-down, this might hold up production completely. This would be expensive for Dragon Toys. Production at Dragon Toys is labour intensive. Production may be labour intensive or capital intensive.

At Dragon Toys production is said to be labour intensive. This means that the production methods used in the factory rely heavily on people. Although a moulding machine is used to produce plastic components at Dragon Toys, a lot of workers are employed in the assembly area. The business will employ another people when production begins on a new product. Production at Dragon Toys is likely to become more capital intensive in the future. I agree with this statement. Over time the types of resources used by a business, and the way they are used, are likely to change.

For example, rapid advances in technology have resulted in more capital intensive production worldwide. Workers in a wide range of different jobs are likely to use computers today.

Fifty years ago computers were undeveloped and not widely used. There is also more large-scale production because it is more efficient. This often results in more capital. In the future developments in technology are likely to continue or even accelerate.

Therefore production is likely to become more capital intensive. However, if labour costs remain low in some countries, such changes are likely to be slower. Chapter 8 Getting started a Which of these businesses are concerned with i agriculture ii manufacturing iii services? It is using the land to grow produce. It is making products.

The first is a retailer and the second provides an air transport service. Therefore the farm shown in the photograph is most likely to be the most common type of business in Africa. Therefore, retailers and businesses providing air transport services are most likely to be common in Western Europe.

Question 1 a What is the difference between the primary and the tertiary sectors? Use examples from this case study. Business Studies The primary sector is concerned with the extraction of raw materials from the earth.

The main activities in this sector include mining, quarrying, fishing forestry and agriculture. In this case, Jill and Ronnie Sanchez are farmers producing agricultural products. They grow root vegetables which is an example of primary production. The tertiary sector is concerned with the provision of services. In this case, the shops and supermarkets supplied by Jill and Ronnie Sanchez, are retailers.

Retailing is an important activity in the tertiary sector. Look at Figure 8. There has been a sharp fall in the number of people employed in agriculture since In , 1,, people were employed in the agricultural sector. In , this had fallen to , One of the main reasons why employment in agriculture has fallen in the UK so sharply is because of advances in technology. In the s, Jill and Ronnie employed up to 12 workers, however, due mainly to mechanisation they now only employ three.

Developments in technology have been enormous in agriculture.

The harvesting machine shown in the photograph is an example. Once such machines have been purchased, the need for labour drops sharply. Chapter review Business sectors a What is meant by i secondary and ii tertiary production? Use examples from the case study. All of manufacturing, processing, and construction lies within this sector.

In this case, VT Garments is a manufacturer. It makes a range of jackets such as padded jackets, ski jackets and unlined jackets; pants; shorts; bermudas; jogging suits; training suits and T-shirts. In this case, the Spanish bank Banco Santander provides financial services for its customers. It is the third largest bank in the world by profit.

Thailand relies most on the secondary sector for its economic output. Nearly half of its entire output 46 per cent comes from the secondary sector. This compares with 29 per cent in Spain and 25 per cent in Uganda. VT Garments, a clothing manufacturer, is an example of a business in Thailand that operates in the secondary sector.

Businesses in each of the three sectors rely on each other. For example, in the primary sector cereal farmers rely on bakers in the secondary sector for their sales of wheat. Bakers may depend on advertising agencies in the tertiary sector to produce television adverts for their products. The transport industry in the tertiary sector relies on the oil industry in the primary sector to provide fuel for its vehicles.

Workers in both the secondary and tertiary sectors rely on the primary sector for their food. This reliance between sectors is called interdependence. It involves the decline of the manufacturing sector at the expense of the tertiary sector. In the last 20 or 30 years many western style economies have seen employment in manufacturing fall sharply. However, at the same time there has been a consistent increase in the quantity and value of services. According to Figure 8. The amount of output contributed by the tertiary sector is 68 per cent in Spain.

This compares with 44 per cent in Thailand and 42 per cent in Uganda. Business Studies e Evaluate the main causes of de-industrialisation. De-industrialisation occurs in well-developed countries. Several suggestions have been made to explain the process.

There may have been a change in consumer demand.


People may prefer to spend more of their income on services rather than manufactured goods. For example, people may be spending more on holidays, restaurants, travelling and personal services and less on consumer durables. Competition in manufacturing may be another important reason. Recently there has been fierce competition in the production of manufactured goods from developing countries such as India, China, Thailand and Brazil. These countries can often produce manufactured goods more cheaply than in western economies.

Another reason is that as countries become more developed the public sector tends to grow. Since the public sector mainly provides services such as education and transport and healthcare, this adds to the growth of the tertiary sector. Finally, advances in technology means that employment in manufacturing falls because machines replace people.

The reason for the decline in manufacturing in well developed countries may be different depending on the circumstances of the individual nation.

For example, a country which has an inefficient manufacturing sector may be vulnerable to overseas competition. Chapter 9 Getting started a Outline two factors that must be taken into account when locating a prawn farm.

Prawn farms need clean water and soil. They need water which can be introduced into the ponds throughout the rearing period. Also, farms should be located away from cities, harbours and industrial centres, or any other activities which may pollute the water supply.

There must also be enough soil available for pond construction and it is preferable to site the farm where the soil is fertile. The changing business environment may affect the location decisions made by some businesses. In this case, Matisse Textiles has decided to move production from Lyon to Bangladesh.

This is because labour is now much cheaper in Bangladesh. Matisse Textiles are trying to cut costs by 40 per cent and by moving production to Bangladesh the business can take advantage of lower wages. In Bangladesh factory wage rates are only about 25 per cent of those in France.

When locating factories manufacturers need to consider factors such as the costs of land, transport, labour and skills, proximity to the market and whether there is any government help. GYMCL believed that the factory is well located in a major hub for auto-parts, bus and construction equipment. Its location will help to increase scale and location to shorten the supply chain and lower production costs.

It is also believed that the location will help improve GYMCLs competitiveness and strengthen its customer relations. Question 2 The government can have an impact on business location. Governments can provide both opportunities and constraints for businesses when they locate their operations. In this case Vedanta Resources was constrained by the government. Plans to develop a bauxite mine on sacred tribal land in India were blocked.

Indias environment ministry prevented Vedanta Resources from mining aluminium ore in the eastern state. Business Studies of Orissa. A government enquiry said that mining would destroy the way of life of the areas endangered and primitive people, the Kutia and Dongria Kondh tribes. Immediately after the decision was announced shares in Vedanta Resources fell by about 6 per cent. This wiped almost m off the value of the company.

The decision means that Vedanta will be prevented from generating quite a lot of revenue from mining at the site in India. The company will also have lost money during the exploration of the site.

CompComp is growing fast and has plans to build a new factory in south-east Asia. Pam Taylor. Rob Jones. Victoria Payne. Michael Witherick. Rob Bircher. Nigel Kelly. Sarah Moffatt. Home Contact us Help Free delivery worldwide. Free delivery worldwide. Bestselling Series. Harry Potter. Popular Features. New in The Student Book's attractive, full-colour design and engaging features makes it accessible for every student.

Written by Rob Jones, a highly experienced teacher and examiner. Contains lots of up-to-date, relevant examples and case studies drawn from a wide variety of international contexts. Includes a Getting Started case study for each chapter, photos from around the world, helpful artwork and diagrams, useful margin features, key terms and questions at the end of each chapter.

Free ActiveBook CD with every Student Book, containing a full glossary, revision questions and exam preparation material. Author Biography Rob Jones is currently an Examiner for a major awarding body. He is also a consultant to the University of Manchester, where he is working with trainee teachers in Business Studies and Economics.