Analyse the possible disadvantages for country Q of NH opening hotels there.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2020). The mark or mark type is shown in brackets.

1. Knowledge: Domestic businesses at risk due to competition
2. Knowledge: Competition may eventually be decreased
3. Knowledge: Jobs, especially management, may not go to domestic employees
4. Knowledge: Jobs created may be low paid, part time, temporary
5. Knowledge: Profits may be taken out of country Q
6. Knowledge: Pressure on domestic businesses due to competition for workers
7. Knowledge: Pollution from business activity
8. Knowledge: NH may repatriate profits to country X which will worsen the current account on balance of payments
9. Knowledge: Repatriation of profits rather than reinvesting in the hotel therefore not boosting demand in the local economy
10. Knowledge: NH may damage the environment in the AONB imposing external costs on society
11. Application: Use of context points could include reference to: three hotels; NH becoming a multi-national business; types of work in hotels; hundreds of jobs; Minister for Tourism, advisers; Impact of hotels on area of natural beauty
12. Analysis: Domestic hotels may face competition for labour pushing up wages and costs
13. Analysis: NH may take customers away from existing hotels resulting in domestic hotels closing
14. Analysis: Higher paid jobs in new hotels may go to employees from country X, therefore, bringing no benefit to country Q employment