The world has become a global market with multinational companies dominating many industries such as oil, medicines and banking.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2011). The mark or mark type is shown in brackets.

1. [2] (a)(i) Any two points × 1 mark each:
2. • operates in more than one country
3. • may have head office in country where it originated
4. • may have factories in several countries, sales offices in other countries
5. • may sell worldwide
6. • may have a very well-known brand
7. • employs large numbers of people worldwide
8. • moves goods/capital/profits/labour between countries.
9. Any other relevant point.
10. Example = 0.
11. [6] (a)(ii) Any six points × 1 mark each and up to 2 marks for any well-explained point:
12. • they can take advantage of improvements in communication and transport to expand
13. • they are able to expand by reinvesting retained profits or by buying or taking over smaller businesses
14. • they have the capital reserves to invest in research, technology and new projects
15. • they are identified by consumers in many different countries and consequently these consumers use their services
16. • they are in businesses that require large amounts of investment and they can supply this, e.g. oil and medicines
17. • they provide large-scale employment in many countries and so are welcomed by the governments of these countries
18. • they generate vast amounts of revenue, some of which may be used to pay taxes, improve the infrastructure of a country or affect the balance of payments of countries in which they are located
19. • they provide a broad range of goods/services that are demanded in many countries plus example
20. • they are in industries that have a global demand.
21. Any other relevant point.
22. [2] (b) Any two points × 1 mark each:
23. • a worldwide market for goods and services
24. • that operates across many countries.
25. Any other relevant point.
26. [4] (c) Any two explained points × 2 marks:
27. • communication enables buying and selling to take place quickly so that deals are made across countries
28. • communication enables information about goods and services for sale to be readily available, e.g. on the Internet
29. • communication enables businesses to be in touch with a wide range of suppliers in many different countries
30. • communication has speeded up trade and so opened up new markets
31. • communication has enabled the establishment of international trading organisations such as stock exchanges, commodity markets and insurance companies
32. • communication enables multinational companies to operate on many different sites in many different countries
33. • communication enables companies to take advantage of business opportunities – opening factories in countries where labour costs are low
34. • communication enables people to talk across distances – tele/video-conferences
35. • decisions can be taken quickly.
36. Any other relevant point.
37. [6] (d) Level 2 (4-6 marks)
38. Candidate has discussed some of the elements of commerce (i.e. trade and some of the aids to trade – at least two) and shown whether or not they are essential to the growth of the global market.
39. Commerce is trade and aids to trade, such as transport, warehousing, advertising, banking, communication and insurance. For a global market to exist, it is essential that trade takes place between countries. This means that countries will import and export. In order to trade they will need to make use of transport to move their goods across the world. They may use air or send bulk goods or containers by sea. These goods and the transport will need to be insured against loss so that compensation can be obtained if a problem occurs. Finance may be required and payments must be organised through banks. In order for the goods to be known, advertising must be aimed at potential buyers in many different countries and these buyers must be contacted using rapid communication, such as email and the telephone.
40. If the global market is to grow for the benefit of all countries, commercial services must be used efficiently to assist buying and selling to take place between as many countries as possible.
41. Level 1 (1-3 marks)
42. Candidate has linked the global market to commercial services, such as trade and some of the aids to trade.
43. The global market needs buyers and sellers. People export and import goods. They use advertising to make people aware of what they wish to sell. They use transport to move the goods. They insure these goods and put any money they make into banks.