C&C has a good reputation for making high quality, hand-made shoes. It has 120 full-time skilled employees. C&C needs to recruit another 20 production employees to meet increased demand. The Managing Director said: ‘I don't know why people worry about globalisation. Two years ago we did not export, now exports are 10% of our output and increasing.' C&C has orders for 100000 pairs of shoes in 2017. The Managing Director cannot decide whether to introduce new technology into the production process.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2016). The mark or mark type is shown in brackets.

1. [2] Clear understanding: e.g. – the growth in worldwide trade
2. [2] Freer movement of people and capital between countries
3. [2] The process of countries becoming more interconnected
4. [1] Some understanding or identification of one of these features: trade around the world
5. [1] rise of multinationals
6. [1] movement of capital around the world
7. [1] increased competition/increasing imports
8. [1] exchange rates
9. [1] skilled workers leave for jobs elsewhere
10. [1] loss of individualised products
11. [1] wages increased to match multinational wage rates
12. [1] increasing investment from multinationals setting up in home market
13. [1] unable to meet demand
14. [1] Job centre [k] as local shoemakers would look here for jobs [app]
15. [1] advertising in newspaper [k] as skilled it is labour [app]
16. [1] specialist (trade magazines) [k] as looking for people to hand make shoes [app]
17. [1] recruitment agency [k] so C&C can focus on meeting the extra demand [app]
18. [1] jobs website/own website/social media [k]
19. [1] internal newsletter [k]
20. [1] Radio/television [k]
21. [1] Word of mouth [k]
22. [1] Easy to communicate/update [k] on new styles [app] as employees always there [an]
23. [1] Motivated/More committed to the business [k] so likely to produce enough shoes [an] to help meet the growing demand [app]
24. [1] Fewer workers needed [k] therefore less administration needed [an]
25. [1] No need to train regularly [k] as these are skilled workers [app] so able to maintain quality/output [an]
26. [1] internal pool of candidates for promotion [k] which can help keep recruitment costs low [an]
27. [1] Increased production [k] as need to produce 100000 each year [app] so able to work all the time [an]
28. [1] Consistent quality [k] as machinery likely to make fewer errors [an] which can help retain/enhance reputation [app]
29. [1] Risk to reputation [k] as known for its hand-made shoes [app] so fewer people may demand its products [an]
30. [1] Impact on employee motivation [k] as work could become less interesting [an] so quality of shoes falls [app]
31. [1] Risk of job insecurity [k] as it replaces some/all the skilled workers [app] which could lower efficiency [an]
32. [1] Cost of investment/retraining [k]