Fig. 1 shows the production assembly line of a multinational car factory. [Figure 1 Car production] Use Fig. 1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [1] Identify the type of production used to make the cars. Division of labour / specialisation / secondary / manufacturing / mass production
2. [2] 1 mark for each advantage It increases output It makes greater use of machinery / mass production / higher quality Reduces the need for labour / reduces labour costs /cheap Leads to increased efficiency / saves time Easier to train workers / cost of training is reduced Less time is wasted by workers moving from job to job Increases the skill of workers / workers become experts Allows the business to take advantage of economies of scale
3. [1] Car making is classified as a secondary industry.
4. [1] When a car is bought through hire purchase, the buyer becomes the owner of the car at the time of the last payment.
5. [1] State one feature of a multinational company (MNC). Has head office in one country (home) Has factories/manufacturing in multiple other countries (host countries) Usually large / global organisations / public limited companies
6. [4] 1 mark for each way and 1 mark for each explanation × 2 ∞ Bring in employees from other parts of world (1) e.g. managers (1) less scope for local people (1) who often end up in lower paid jobs (1) become unemployed (1) ∞ Exploit a country's cheap labour rates (1) e.g. use of child labour (1) ∞ May leave the country when grant/agreement runs out (1) especially if labour costs are cheaper elsewhere (1) leading to unemployment (1) ∞ Profits leave the host country back to HQ country (1) the host country does not get the benefit of it (1) reducing the country's foreign currency exchange reserves (1) ∞ May exploit or harm the environment (1) pollution from industrial waste or waste materials (1) air pollution from factories (1) breaking international regulations (1) ∞ Exploiting natural resources (1) e.g. raw materials, such as cotton (1) once resources are used up, MNC may move on (1) leaving the country with less/no natural resources (1) ∞ Local firms may go out of business (1) local consumers may prefer branded goods (1) but local firms cannot compete with economies of scale achieved by MNCs (1) ∞ Damage local culture/traditions / disregard for national customs (1) e.g. working on days of worship (1)
7. [8] Methods of suitable communication include: Email - direct form of communication with a written record. Cheaper and quicker to send all over the world than sending a letter, and the car parts might be urgent. Letter - external form of communication that provides detailed written information to be kept as a reference. The car parts may not be urgently required or the email mailbox may be full or email ignored. Telephone - one-to-one communication with instant contact and feedback, with decisions made and delivery agreed straightaway. Teleconferencing – avoids travelling to see the overseas supplier, saving time and money. Videoconferencing/video call – can see the body language of the supplier, and avoids travelling to see the overseas supplier, saving time and money. Evaluation: It is not known whether the car parts are urgent but it is recommended that if they are the telephone is used to gain immediate contact. If not quite so urgent, an email might be used so a written record is created. A written form would be best when there is a problem so there cannot be any later confusion/disagreement.