The car industry is dominated by multinational companies.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2012). The mark or mark type is shown in brackets.

1. [2] (a) (i) Any two points x 1 mark each - a large company with its head office in one country and factories/outlets/offices in many other countries, any other relevant fact
2. [1] (a) (ii) Any example x 1 mark – Ford, Honda, Toyota, Fiat, BMW, Mercedes, Nissan, General Motors, Saab, Peugeot, Hyundai, Volvo
3. [4] (b) Any four points x 1 mark each or two well explained points x 2 marks - need much investment in plant and machinery and only a very large company could raise the finance needed, cars are needed all over the world and these companies fulfil that need, they make parts of the cars in many different countries and are able to assemble them in other countries, governments wish to have multinational car companies operating in their country for the benefit of the country's economy, they provide employment for many people with engineering skills, developed as global businesses because everyone wants cars, any other relevant point
4. [6] (c) Level 2 (4-6 marks) Has discussed how commerce links the car industry to the consumer (with consideration of some of the six commercial services) and has given a reasoned opinion. Cars are manufactured in order to be sold to consumers. If there were no commercial services, cars would not reach the consumer at the right time and at the right place. After cars have been manufactured they may need to be stored until they are sold. This may be in an open field or at a garage's showroom on display. Cars need to be exported to many countries and special ro-ro ships may be used for this purpose. They will also be transported from the docks or factories to the garages and car transporters are often used for this. Car manufacturers will need finance and banking in order to carry on their businesses. They will need loans to buy machinery and banking services to pay their creditors. Both the car manufacturer and the garages will need insurance in case risks such as fire or theft occurs. Advertising and promotion will be needed. Otherwise the consumer will not know the range of cars on offer and will not have any information about them. Communication is also important so that the manufacturer can keep in touch with importers and with customers such as the garages. It may use email, telephone or letter and will post large amounts of information on the Internet. Without commerce, the car manufacturer would soon be unable to make cars. Commerce helps production to be ahead of demand and is very important to multinationals involved in car manufacture. Level 1 (1-3 marks) Has commented on commerce in relation to the car industry with/without an opinion. Car manufacturers need commerce. They need banks and finance. They need advertising to inform and persuade consumers. They need to communicate with garages. Therefore they need commerce.
5. [3] (d) (i) Any three points x 1 mark each - television is a mass media /need to appeal to a mass audience, need to show films of the car in action, need to use colour and action, need to repeat the advertisement many times, company can afford the high costs of television advertising, need to use devices and television is suitable for this, any other relevant point
6. [4] (d) (ii) Any two devices described x 2 mark each - colour - to show the car in use and to attract attention, sexy/glamorous people – looking fashionable and enjoying the high life, suspense – cars falling off roofs, travelling at high speeds on narrow roads, romance - showing success with the opposite sex linked to using the car, luxury - with rich fittings or in rich locations, affluence - using exotic locations to advertise certain models of car, any other worthwhile device described in relation to advertising a car