O-LevelCommerceGlobal trade7100/21 · May/June 2010 · Q120 Marks

You work in the Head Office of a large company mining iron ore. The company has operations in several countries.

(a)(i)What type of industry is mining iron ore?[1]
(a)(ii)What type of business organisation has operations in several countries?[1]
(b)(i)The company trades with China and Japan. It transports its iron ore by ship to these countries. Explain why it uses ships.[4]
(b)(ii)How do port authorities assist this company to send its iron ore by ship?[4]
(c)(i)An overseas customer wants an immediate reply to an enquiry.[2]
(c)(ii)Three managers of mines in different countries need to discuss an important report.[2]
(c)(iii)A member of staff in your office is late for an important meeting.[2]
(d)Why would this mining company have an Internet website?[4]

Mark scheme

Marking points from the official mark scheme (May/June 2010). The mark or mark type is shown in brackets.

[1] (a)(i) primary/extractive
[1] (a)(ii) multinational
[4] (b)(i) Any four points × 1 mark each or 2 developed points × 2 marks – It uses ships because ships can carry heavy cargoes in bulk (2); Iron ore is a bulk and heavy commodity; Iron ore is a cheap commodity so the cost of air transport would be too expensive; Although we do not know where the iron ore is shipped from, it is likely to be a long distance across sea so road or rail are not suitable; There are plenty of ships available to carry such cargoes/specialised ships; Non-urgent cargo; Any other relevant point
[4] (b)(ii) Any four points × 1 mark each – By providing deep water berths for ships to dock; By providing road/rail access to the docks; By providing loading facilities for the iron ore; By providing deep water channels and navigational aids; By providing repair facilities/refuelling/dry docks; By providing security; Any other relevant point; Warehousing = 0
[2] (c)(i) One mark for choice and one mark for reason for each part question – Email/telephone/fax; Because a speedy reply is needed; Needs a method of communication that is international; Email provides a written record; Telephone enables discussion to take place; Fax provides written record; Cheap
[2] (c)(ii) One mark for choice and one mark for reason for each part question – Teleconferencing; Can be linked together without the need for travelling; Saves travel time and travel costs; Can be set up quickly
[2] (c)(iii) One mark for choice and one mark for reason for each part question – Telephone; Can be summoned immediately; Can find out why the person is late; Contact while on the move; Any other relevant reason
[4] (d) Any four points × 1 mark each or two developed points × 2 marks – So that it can publicise its operations and enhance its public image; So that it can advertise staff vacancies; So that it can show what it has for sale; So that buyers can place orders; Because its competitors may also have websites; So that it can show what developments there have been in iron ore mining; Worldwide access; Any other relevant point; internet banking/info on competitors = 0