HJ Industries Ltd manufactures low-value plastic products used in plumbing, such as pipes. Production was organised using division of labour.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. [1] Dividing/breaking down a whole task into a number of tasks/stages
2. [1] Workers assigned different tasks
3. [1] A worker carries out a particular task/limited range of tasks
4. [1] Placing workers according to their skills.
5. [1] Worker becomes more skilled/expert in their jobs
6. [1] Work is quicker / greater speed / saving time
7. [1] Greater efficiency / less wastage
8. [1] Output increases
9. [1] Unit costs are reduced / at lower prices / take advantage of economies of scale
10. [1] Machinery / automation / mechanisation can be used
11. [1] Allows mass production / standardised goods
12. [1] Reduces labour / labour costs
13. [1] Easier to train workers / reduces training costs
14. [1] Can employ less qualified workers / leading to lower wages paid
15. [1] Saving of time of workers moving from job to job.
16. [1] Boredom
17. [1] as repeating the same job
18. [1] may lead to mistakes
19. [1] Less pride in job / less variety in job
20. [1] leading to less job satisfaction / less morale
21. [1] as only making part of a product
22. [1] Unemployment
23. [1] as some jobs may be replaced by computers / machinery
24. [1] e.g. loss of typist jobs
25. [1] Reduction in skills
26. [1] may make it difficult to move to other jobs
27. [1] as limited experience
28. [1] Slower workers may not be able to keep up with others
29. [1] may lose money if on piece-time
30. [1] less motivated
31. [1] Dependent on other workers
32. [1] to complete the task
33. [1] e.g. a worker may be absent
34. [1] which might affect their own output target.
35. [1] Different sizes of plastic products can be packed into different sized containers
36. [1] and may not be unpacked until accepted by the importer
37. [1] leading to faster delivery
38. [1] The transhipment from road to sea to road is easier
39. [1] as only the standard container has to be moved
40. [1] Ports are equipped with special equipment/cranes
41. [1] to make the moving of containers easier / quicker turnaround
42. [1] Reduces labour costs
43. [1] thereby reducing transport costs
44. [1] Safer/protected
45. [1] as less chance of theft/damage/weather from sealed/locked containers
46. [1] Containers do not have to be warehoused
47. [1] as the container acts as its own warehouse / reduces packing costs
48. [1] Can export in bulk
49. [1] containers can carry large quantity of goods
50. [1] TIR has speeded up the transport of goods
51. [1] as it reduces hold-ups at borders
52. [1] Plastic products are low-value items
53. [1] suitable for going by container.
54. [1] A trading bloc is a group of countries
55. [1] who cooperate together to promote trade between the bloc's member countries
56. [1] Usually there is free trade between member countries.
57. [1] HJ would, therefore, benefit from no import duties/quotas being imposed
58. [1] making them competitive
59. [1] lower prices
60. [1] saving costs/money
61. [1] Less regulation / less documentation
62. [1] often there is free movement of labour between countries of a trading bloc
63. [1] this would mean that HJ would have a wider choice when recruiting new workers
64. [1] May be part of a common currency
65. [1] easier to pay for imported goods
66. [1] no need to change currency
67. [1] Building a factory in that country will mean that they are close to the market for their goods.
68. [1] They will not have the problems associated with transporting the goods 2000 km, and providing the paperwork needed to import into that country.
69. [1] The government of the country purchasing the goods will encourage HJ to build the factory, since it will provide employment and assist the balance of payments.
70. [1] They may provide grants and other assistance to HJ if they build the factory.
71. [1] Building the factory may enable HJ to obtain further contracts from the country or from nearby countries.
72. [1] The infrastructure of the country will be different and there may be problems with labour supply, land supply, power supply and various legal matters.
73. [1] The new factory will involve considerable cost which will probably not be fully covered by government grants.
74. [1] Communication between head office and the new factory could be difficult and senior managers from head office would incur extra travelling costs.
75. [1] New suppliers may have to be found for the new factory.
76. [1] The government may have pollution/deforestation concerns over giving permission to build
77. [1] The contract may not be renewed in five years' time.
78. [1] The final decision on whether to build the new factory probably rests on the economic viability of the project.
79. [1] The cost of the new factory may be recovered quickly by the reduced cost of the goods manufactured there, thus increasing profits.
80. [1] This will depend on wage costs in the new country and other costs.
81. [1] Unless the financial benefits are clear, there would be considerable risks in building the new factory