A multinational company owns the quarry shown in Fig. 1.1. The quarry employs 50 workers. The company uses machinery, transport and explosives to quarry stones and rocks. It has a warehouse that stores equipment and dynamite. The multinational company has taken out a number of insurance policies. Fig. 1.1 Quarry Use Fig. 1.1 to help you answer the following questions.

Mark scheme

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

1. [2] Has Head Office in one country (1) and factories/outlets in another country/countries (1).
2. [2] It extracts raw materials (1) from the earth/land (1) it is an exhaustive industry (1)
3. [4] Fire (1) damage or destruction to quarry buildings or machinery (1)
4. [4] Theft (1) of quarry machinery (1)
5. [4] Consequential loss (1) cover against losses to quarry income caused by fire or theft (1)
6. [4] Premises/buildings insurance (1) cover against the risk of floods/wind/earthquake/damage to quarry buildings (1)
7. [4] Employer's liability (1) to cover risk of accident to quarry workers (1)
8. [4] Motor vehicle (1) for quarry trucks/machines (1)
9. [4] Public liability (1) to protect visitors to the quarry (1)
10. [1] A warehouse is an example of an aid to trade
11. [1] Employment is classified in PEST as an economic factor
12. [6] Road transport: Trucks can carry large and heavy quarry stones and rocks.
13. [6] Rocks/stones may be loaded directly onto trucks at the point of extraction so costs will be kept lower.
14. [6] Different types of road transport to carry the quarry materials/equipment.
15. [6] Flexibility of final destination, volume of goods, frequency of journeys.
16. [6] Door-to-door delivery with no need for transhipment.
17. [6] Available 24 hours a day, quicker over short distances and usually more affordable than other methods of transportation.
18. [6] The downsides to choosing road freight are: restrictions caused by traffic
19. [6] speed limits
20. [6] can be slow over long distances
21. [6] can increase pollution from petrol fumes and noise
22. [6] limited load capacity
23. [6] Rail transport: Larger/heavier loads of rocks/stones can be more easily and quickly carried over longer distances and they are less affected by weather conditions and traffic jams
24. [6] The downsides to rail transport are: lack of flexibility as routes and times cannot be adjusted
25. [6] scheduling of rail transportation may be inconvenient
26. [6] Evaluation: The company will have to weigh up the flexibility of road transport over advantages of carrying more goods in a single journey because the needs of the consumer and the business have to be met, particularly their location and the destination for the quarry materials. Fig.1.1 does not show a rail track so road might be the only way.