4.1 plans.

Assess the likely future growth of ridesharing businesses in an emerging economy, such as India. (10)

Point=Ridesharing businesses, which involve passengers paying to travel in a private vehicle booked through an app or website, are likely to grow rapidly in India due to strong price sensitivity among consumers.

Effect=Extract D shows demand for transport-related products is highly price elastic (e.g. Ford PED –2.75), suggesting Indian consumers are responsive to price changes. Ridesharing services such as Ola offer low-cost + car-pooling options, making them cheaper than owning a car or using traditional taxis.

Consequence=This makes ridesharing attractive to price-conscious consumers in an emerging economy like India, increasing user numbers + revenue growth as prices fall or promotions are offered.

Judgement=This is a strong driver of future growth, particularly in urban areas where affordability is a key factor in transport choices.

Point=Ridesharing businesses also likely to grow due to increasing accessibility + local adaptation in India.

Effect=Extract F shows that Ola accepts cash payments + supports nine regional languages, unlike Uber initially, making the service accessible to a wider population where only 10% speak English. Global data in Extract E also shows rapid growth in ridesharing users, rising from 207 million in 2015 to over 539 million by 2021, indicating strong global momentum India can benefit from.

Consequence=Greater accessibility increases adoption beyond major cities, expanding the customer base + supporting long-term growth in smaller cities + rural areas.

Judgement=This significantly strengthens future growth prospects, as localisation allows ridesharing firms to overcome barriers that often limit success in emerging markets.

Conclusion=Overall, ridesharing businesses are likely to experience strong future growth in India due to high price sensitivity + effective local adaptation, supported by rapid global expansion trends. However, growth may be limited by regulatory pressure, ethical concerns + increased competition, meaning success will depend on how well firms balance low prices with responsible business practices.

Explain how Ebac Ltd could benefit from exporting its products. (4)

Point=Exporting involves selling goods produced in one country to customers in another. Ebac Ltd could benefit from exporting by increasing its sales revenue, as 70% of its current turnover already comes from Continental Europe (Extract F).

Effect=Selling to overseas markets allows Ebac Ltd to reach a larger customer base than it could in the UK alone, spreading fixed costs over more units + increasing profitability.

Judgement=This is beneficial because it supports business growth, job creation + reinvestment in the company, helping Ebac Ltd maintain its market-leading position in water coolers.

Assess the ways in which specialisation might give a business, such as Pfizer, a competitive advantage when trading internationally (10)

Point=Specialisation is when a business focuses on producing a limited range of products or services to become highly skilled + efficient in that area. Pfizer’s merger with Allergan allows it to specialise in specialist drugs, such as Botox + Alzheimer’s treatments (Extract E).

Effect=By focusing on these niche pharmaceutical products, Pfizer can improve production efficiency, benefit from expert knowledge + develop innovative treatments faster than competitors.

Consequence=This can give Pfizer a competitive advantage internationally, as it can offer high-quality, specialised products other firms may not be able to match, helping it expand into new markets worldwide.

Judgement=Specialisation is particularly important in the pharmaceutical industry, where innovation + quality are key to gaining market share + meeting regulatory standards globally.

Point=Specialisation can also allow Pfizer to benefit from economies of scale when trading internationally. With a narrower product range, production can be concentrated in fewer locations, such as Ireland (Extract E and F).

Effect=Producing larger volumes of specialised drugs lowers the average cost per unit + allows Pfizer to price competitively in international markets.

Consequence=This reduces costs while maintaining profitability, strengthening Pfizer’s competitive position against other multinational pharmaceutical companies.

Judgement=Combined with its ability to operate in low-tax locations like Ireland (Extract F), specialisation supports global expansion by making Pfizer more cost-efficient + globally competitive.

Conclusion=Overall, Pfizer’s focus on specialised pharmaceutical products + targeted production locations gives it both product + cost advantages, which are likely to strengthen its position in international markets + drive sustainable growth.

The government of Ireland supports the location of multinationals, such as Pfizer, in their country if this benefits the local and national economy overall. Evaluate the likely impacts on the Irish economy of Pfizer locating there and recommend if the Irish government should have supported this decision or not. (20)

Point=Foreign multinationals, such as Pfizer relocating its headquarters to Ireland, bring foreign direct investment (FDI), advanced knowledge + technology (Extract G).

Effect=FDI increases capital inflows into Ireland + can improve the productivity of the Irish economy through technology transfer + innovation.

Consequence 1=Higher productivity + innovation can strengthen Ireland’s pharmaceutical sector, making it more competitive internationally + increasing exports of specialist products, such as Botox + Alzheimer’s drugs (Extract E).

Consequence 2=The presence of multinationals can create employment opportunities, particularly for high-skilled workers, boosting wages + reducing unemployment in areas like Dublin, Cork + Sligo.

Judgement=Overall, the benefits of knowledge transfer, innovation + employment suggest a positive impact on Ireland’s economy, particularly in high-value sectors like pharmaceuticals.

Point=Ireland’s low corporation tax rate (12.5%) attracts multinationals to locate there (Extract F).

Effect=By relocating headquarters to Ireland, Pfizer can legally reduce its tax burden, potentially reinvesting savings into research, expansion, or higher wages for employees.

Consequence 1=The government gains tax revenue from corporate taxes that might otherwise have gone to the US or other countries, which can be used to fund public services or infrastructure.

Consequence 2=However, some jobs may be lost due to mergers + relocations + reliance on multinationals makes the economy vulnerable to decisions made by foreign-owned firms, potentially reducing long-term economic stability.

Judgement=While there are risks of job displacement + dependency on multinationals, the net effect is likely positive given the scale of investment, exports + high-skilled employment generated.

Conclusion=The relocation of Pfizer to Ireland is likely to benefit the Irish economy through FDI, knowledge transfer, increased productivity, exports + tax revenues. Despite some risks, the Irish government should support such decisions, as the overall economic + strategic advantages outweigh potential drawbacks.

When choosing to expand overseas, there are a number of factors that may limit the success of this strategy. Assess the likely importance of these factors to Pure Gym’s expansion into emerging markets, such as those in Asia, South America or Africa. (10)

Point=Cultural and market factors refer to local consumer habits, preferences + income levels. For Pure Gym, its low-cost, 24-hour gym model may not automatically appeal in emerging markets in Asia, South America, or Africa if customers prefer full-service gyms, group classes, or irregular membership payment options (Extract E).

Effect=This could result in slower membership growth, as potential customers may not immediately see value in the low-cost, self-service model.

Consequence=Lower membership uptake could reduce revenue + slow the return on investment for each new gym.

Judgement=Cultural + market factors are likely a key limitation, as failing to understand local preferences could significantly affect profitability + the success of expansion.

Point=Regulatory + financial factors include local laws, taxation + costs associated with setting up operations in a new country. Pure Gym may face licensing requirements, taxation differences, or higher costs for refurbishing + operating gyms in emerging markets (Extract F, G, H).

Effect=These factors could delay the opening of new gyms + increase operational costs, potentially affecting the speed of market penetration.

Consequence=Higher costs may reduce profit margins + make it more challenging to achieve the desired financial return from expansion.

Judgement=Regulatory + financial barriers are likely important constraints, as they directly impact both the feasibility + profitability of international growth.

Conclusion=Pure Gym’s overseas expansion is likely to be constrained primarily by cultural and regulatory/financial factors. While emerging markets offer growth opportunities due to rising urban populations + interest in fitness, the business will need to carefully adapt its model, pricing + operations to local conditions to achieve sustainable success.

Assess the factors that might affect the success of a global business such as Disney when entering a new market such as China. (10)

Point=Cultural + market factors refer to local tastes, preferences + income levels. For Disney, the popularity of American culture among China’s younger generation has supported the success of Shanghai Disney, attracting high visitor numbers (Extract B).

Effect=This cultural alignment encourages high attendance + strong revenue, as visitors are motivated by the novelty + appeal of Disney characters and experiences.

Consequence=High attendance strengthens Disney’s brand in China, builds customer loyalty + provides opportunities for cross-selling merchandise + food services.

Judgement=Cultural + market factors are likely highly important for Disney’s success, as failure to align with local tastes could drastically reduce visitor numbers + profitability.

Point=Political + economic factors include government support, regulation + the exchange rate. Shanghai Disney benefited from government involvement, including funding, land provision + partnership with local company Fosun International (Extract B), while fluctuations in exchange rates may affect costs + profits (Extract C).

Effect=Government support lowers initial costs + regulatory barriers, facilitating a smoother launch, whereas adverse currency movements could increase operating costs for international transactions.

Consequence=Political + economic stability enhances Disney’s ability to plan investments and maintain profit margins, while instability or weak government backing could slow expansion or increase financial risk.

Judgement=Political + economic factors are moderately important; government support is crucial for establishing operations, but Disney’s global experience may mitigate some economic risks.

Conclusion=Disney’s success in China is likely to be influenced primarily by cultural alignment + political/economic support. While high demand for American-themed entertainment drives attendance, government cooperation + stable economic conditions enable profitable operation.

Explain one way foreign direct investment (FDI) affects businesses in Indonesia (4)

Point=Foreign direct investment (FDI) occurs when a business from one country invests in operations, such as factories, in another country. For example, Nike has set up manufacturing in Indonesia (Extract F).

Effect=This allows businesses to benefit from lower labour costs + access to a relatively skilled workforce, making production cheaper + more efficient.

Judgement=FDI positively affects businesses in Indonesia such as textile + rubber manufacturers benefiting from increased demand from multinationals by reducing production costs + supporting faster, cost-effective access to a growing domestic + regional market.

Assess the likely impact of increased foreign direct investment (FDI) on the growth of businesses in the UK car industry. (12)

Point=Foreign direct investment (FDI) occurs when a company from one country invests in business operations, such as factories or joint ventures, in another country. In the UK car industry, companies like Jaguar Land Rover + Toyota have received FDI from foreign owners (Extract C).

Effect=FDI provides access to additional capital, advanced technology + expertise, allowing car manufacturers to expand production, invest in research + development + develop new products, such as battery electric vehicles (BEVs), which are experiencing strong growth (Extract B).

Consequence=This investment supports business growth by increasing efficiency + competitiveness, helping UK car companies capture a larger share of the growing electric car market and meet environmental targets.

Judgement=FDI is likely to have a significant positive impact on growth, particularly in innovative sectors like electric vehicles, despite supply chain issues limiting overall recovery.

Point=FDI can also strengthen a company’s global connections, enabling access to international markets + supply chains. For example, Toyota in Derby benefits from foreign ownership in sourcing components + exporting vehicles (Extract C).

Effect=This allows UK car businesses to diversify revenue streams + reduce dependence on the domestic market, which has faced declining sales + supply shortages (Extract A).

Consequence=Access to global markets + resources can sustain business growth even when domestic demand falls, supporting employment + economic stability in the UK car industry.

Judgement=While FDI brings growth opportunities, its impact is partly limited by external factors like semiconductor shortages + rising costs, so its benefits are substantial but not unlimited.

Conclusion=Overall, increased FDI is likely to promote growth in the UK car industry by providing investment, technology + global market access. However, external constraints such as supply chain issues mean while FDI supports recovery + innovation, it cannot fully overcome current market challenges.

Spotify is aiming to extend the product life cycle of its music streaming business. Spotify could either focus on marketing strategies in existing markets, such as Europe and the USA, or expand into emerging markets, such as those in Asia. Evaluate these two options and recommend which one is most suitable for Spotify to extend the product life cycle of its music streaming business. (20)

Point= The product life cycle (PLC) shows how a product moves through introduction, growth, maturity + decline. Spotify could extend its PLC by focusing on product development + differentiation in existing mature markets such as Europe + the USA.

Effect= Extract B shows these markets are highly competitive, with many services operating at a loss, so Spotify has added short video clips, VR content + exclusive features to increase engagement + encourage premium subscriptions.

Consequence 1= This could slow down maturity + delay decline, as loyal customers are retained for longer + average revenue per user increases through advertising + subscriptions.

Consequence 2= However, these markets are near saturation, meaning growth is limited + Spotify still pays over 70% of revenue to record labels, which may restrict profitability + long-term PLC extension.

Judgement= Overall, focusing on existing markets can extend the PLC in the short to medium term, but high competition + cost pressures reduce its effectiveness as a long-term strategy.

Point= Spotify could extend the PLC by entering emerging Asian markets, where music streaming adoption is lower but growing.

Effect= Extract C shows Asia currently generates only 14% of global digital music revenue, suggesting the market is in an earlier PLC stage, offering greater long-term growth potential.

Consequence 1= Entering Asia could restart the growth stage of Spotify’s PLC, increasing subscriber numbers over time + spreading risk away from saturated Western markets.

Consequence 2= However, lower willingness to pay, copyright infringement + reliance on mobile network bundles may reduce profitability + make growth slower or less predictable.

Judgement= Despite these risks, emerging markets offer greater long-term PLC extension, as growth potential outweighs short-term profit limitations.

Conclusion= Both options can extend Spotify’s product life cycle, but to different extents. Marketing in existing markets is stronger in the short term, using product development to defend market share, but growth is limited due to saturation + high costs. Expanding into Asia is more suitable for long-term PLC extension, as it allows Spotify to enter earlier PLC stages + build future demand, even though success depends on external factors such as income levels + pricing sensitivity. Therefore, expanding into emerging markets is the more appropriate strategy for extending Spotify’s product life cycle + achieving long-term objectives.

Using the data from Extract F, assess the impact of the exchange rate movements between January 2019 and April 2019 on the total costs of a business, such as Tropicana, which imports to the USA from Brazil. (10)

Point=An exchange rate measures the value of one country’s currency against another. Between January 2019 + April 2019, the Brazilian Real (BRL) depreciated against the US dollar from approximately 3.8 BRL/US$ to 4.2 BRL/US$ (Extract F). For a business like Tropicana, which imports orange juice from Brazil to the USA, this depreciation increases the cost in dollars of purchasing Brazilian goods.

Effect=As Tropicana pays more dollars for the same quantity of orange juice, the total costs of importing increase.

Consequence=Higher import costs reduce profit margins if Tropicana cannot pass on the increased costs to consumers in the USA. This may force the business to raise prices or absorb lower profits, potentially affecting competitiveness in the US market.

Judgement=The impact of the exchange rate depreciation is significant because a large proportion of Tropicana’s inputs come from Brazil, making the business highly exposed to currency fluctuations.

Point=A depreciating BRL can also affect budgeting + financial planning for Tropicana, as costs become less predictable + more volatile due to ongoing currency fluctuations.

Effect=This uncertainty may lead the business to implement hedging strategies, such as forward contracts, to manage currency risk.

Consequence=While hedging can reduce financial risk, it may increase administrative + financial costs, which could partially offset the benefits of importing from Brazil at competitive rates.

Judgement=Overall, while Tropicana still benefits from accessing Brazilian orange juice, the weakened Real increases costs + introduces financial risk, requiring careful management.

Conclusion=The depreciation of the Brazilian Real against the US dollar between January and April 2019 likely increased Tropicana’s import costs, reducing profit margins + adding financial uncertainty. The business must balance these challenges with the benefits of sourcing high-quality orange juice from Brazil.

Assess the possible impact of multinationals, such as Nike, on the economy of Indonesia. (12)

Point=Multinationals like Nike bring foreign direct investment (FDI) to Indonesia by setting up factories + production facilities (Extract F).

Effect=FDI increases capital investment in the country, boosts industrial output + creates employment opportunities for both skilled + unskilled workers.

Consequence=Jobs created by Nike provide income to the local workforce, increasing spending power + stimulating the domestic economy, particularly in urban areas with growing middle-class populations.

Judgement=Overall, the presence of Nike positively impacts economic growth + employment, especially in the manufacturing + footwear sectors.

Point=Nike’s factories benefit from Indonesia’s low labour costs + access to raw materials (Extract F & G).

Effect=This reduces production costs for Nike, increases efficiency + allows the company to remain competitive globally while potentially expanding operations.

Consequence=Lower production costs can encourage further investment from other multinationals, improving Indonesia’s reputation as a manufacturing hub + increasing exports, but there may be challenges such as land shortages + strain on infrastructure.

Judgement=While there are limitations, the long-term economic benefits from cost-effective manufacturing, increased exports + foreign investment outweigh potential negatives.

Conclusion=Nike’s investment in Indonesia is likely to have a significant positive impact on the economy through job creation, industrial growth + enhanced exports. Although some challenges exist, the net effect supports economic development + encourages further multinational investment.

There are several factors that have contributed to increased globalisation, including transport and communication. Assess the likely importance of transport and communication for the increased globalisation of the computer games market. (12)

Point=Globalisation is the integration of economies, cultures, technology, markets, ect. Transport has facilitated globalisation of the computer games market by enabling physical consoles + games to be shipped worldwide (Extract E).

Effect=Games produced in countries such as Japan + China can reach global markets, allowing firms to sell to a wider customer base + increase revenue.

Consequence=Businesses benefit from economies of scale as larger production volumes reduce average costs + consumers gain access to a greater variety of games.

Judgement=Transport is important, but its relative significance has declined with the rise of digital distribution, which reduces reliance on physical shipping.

Point=Communication and digital technology have accelerated globalisation by enabling online gaming, cloud storage + simultaneous worldwide game releases (Extract E & G).

Effect=Gamers can play with friends across the globe, download games instantly + access niche markets without physical constraints. Cultural adaptations, such as Sony changing controller symbols for different regions, allow products to suit diverse markets.

Consequence=Firms can target billions of players simultaneously, increase sales + build global brand loyalty. Digital platforms reduce costs + expand market reach beyond what transport alone could achieve.

Judgement=Communication + digital technology are likely more important than transport in driving current globalisation of the games market because they enable real-time interaction, customization + immediate access.

Conclusion=Both transport + communication have contributed to the globalisation of the computer games market. While transport initially enabled physical distribution, advances in communication, online connectivity + digital distribution have become the primary drivers of global market expansion + widespread accessibility.

Explain one way the Indian government might use legislation to protect the Indian ridesharing market from nonIndian businesses. (4)

Point=The Indian government could use legislation, such as restrictions on foreign ownership or investment caps, to protect the Indian ridesharing market. For example, limiting the proportion of a foreign company’s stake in ridesharing firms would favour local businesses like Ola over non-Indian companies such as Uber.

Effect=This would reduce competition from foreign firms, helping Indian businesses maintain market share + supporting local employment, regional language support + services suited to the domestic market.

Assess the likely effects of protectionism on Northfield Cycles. (10)

Point=Protectionism, such as tariffs on imported bikes or restrictions on imports from countries like China, Taiwan, Vietnam + Malaysia, could affect Northfield Cycles (Extract F).

Effect=The cost of importing 95% of NC’s stock would rise, meaning higher prices for consumers or lower profit margins for NC if they absorb the cost.

Consequence=Higher prices could reduce demand, especially since many NC customers are price-sensitive + the product life cycle of high-performance bikes is short, meaning discounts are already common.

Judgement=Overall, protectionism could increase NC’s costs in the short term + risk sales, but might strengthen the domestic supply chain in the long term.

Point=Protectionism may affect NC’s expansion plans (Extract H). For example, higher import costs could reduce net cash flows + the net present value (NPV) of Plan A (£4,989) or Plan B.

Effect=This could limit NC’s ability to invest in larger or high-tech workshops, delaying or downsizing expansion projects.

Consequence=Expansion delays could restrict the shop’s capacity to meet growing demand from government schemes (Extract G), such as Cycle to Work and Fix Your Bike, potentially limiting future revenue growth.

Judgement=While protectionism protects domestic producers, for a business like NC heavily reliant on imports, it could hinder growth + investment plans, so the negative impact might outweigh long-term benefits.

Conclusion=Protectionism is likely to increase costs for Northfield Cycles + reduce short-term profitability, but could encourage domestic sourcing. However, given NC’s reliance on imported stock + plans for expansion, the overall impact is probably negative unless suitable domestic alternatives are available.

Assess the likely benefits to Lavazza of operating in the NAFTA trading bloc (10)

Point=Operating within NAFTA gives Lavazza tariff-free access to the US + Mexican markets (Extract F). NAFTA ensures member states treat each other’s goods + investors equally.

Effect=Lavazza can sell coffee products from its Canadian subsidiary across North America without paying import tariffs.

Consequence=This reduces costs, making Lavazza more competitive + potentially increasing sales in the large US coffee market (Extract D).

Judgement=NAFTA membership is beneficial for market access + cost efficiency, supporting Lavazza’s growth.

Point=NAFTA facilitates investment within member countries (Extract F), allowing Lavazza to purchase Canadian companies safely.

Effect=This reduces barriers to entry + legal risk when expanding operations into the US and Mexico.

Consequence=Lavazza can leverage Kicking Horse Coffee’s market presence in the organic + fairtrade segment to grow sales.

Judgement=The trading bloc supports Lavazza’s profitability + competitive advantage in North America.

Conclusion=Overall, NAFTA gives Lavazza tariff-free trade, secure investment + access to large markets, making it a significant advantage for expanding + growing its North American operations.

Assess one effect on Nike of Indonesia being a member of the ASEAN trading bloc. (10)

Point=Indonesia being a member of the ASEAN trading bloc allows Nike to benefit from reduced trade barriers + tariffs between member countries (Extract F).

Effect=This lowers the cost of exporting Nike’s products from Indonesia to other ASEAN countries + makes production more cost-effective.

Consequence=Nike can sell its products at more competitive prices in ASEAN markets, increasing sales + market share.

Judgement=Operating within ASEAN is likely to be beneficial for Nike’s profitability + growth in the region, making Indonesia a strategic manufacturing hub.

Point=ASEAN membership promotes free trade + easier market access, while Indonesia provides a large, skilled, low-cost workforce (Extract F).

Effect=Nike can take advantage of cheaper production costs + quicker access to regional markets.

Consequence=This supports Nike’s ability to expand manufacturing + meet growing demand efficiently.

Judgement=Overall, being in a free-trade bloc like ASEAN strengthens Nike’s competitiveness in Southeast Asia.

Conclusion= Indonesia’s membership of ASEAN benefits Nike by reducing tariffs + improving market access, which can lower costs + support growth. However, challenges such as land shortages + competition for skilled labour (Extract F) may limit the full potential of these benefits. Overall, the positive effects on cost efficiency + regional sales are likely to outweigh the drawbacks, making Indonesia a strategically advantageous location for Nike, but not without some risks.

Explain one reason for Ford's decision to develop an SUV for the Indian market (4)

Point=Ford is developing an SUV for the Indian market through a joint venture with Mahindra (Extract G). This allows Ford to offer a vehicle suited to local preferences + conditions while using Mahindra’s chassis.

Effect=By collaborating with Mahindra, Ford can reduce production costs, gain local market knowledge + benefit from Mahindra’s established distribution network, making the SUV more competitive in India.

Ebac's sales to mainland Europe have fallen by 55% since 2016. In order to remain competitive in the European market for white goods it is considering either relocating production facilities to Poland or reducing selling prices to match those of rivals such as Indesit and Hotpoint. Evaluate Ebac's options and recommend which one would be most appropriate to increase its European sales (20)

Point=Ebac could relocate production facilities to Poland, where manufacturing costs - including labour, electricity, and other expenses - are lower than in the UK (Extract E).

Effect=Lower production costs would allow Ebac to reduce selling prices or improve profit margins while remaining competitive against rivals such as Indesit + Hotpoint.

Consequence 1=Relocating could increase European sales by offering products at more attractive prices in the highly price-sensitive white goods market.

Consequence 2=However, relocating may involve high initial setup costs, potential disruption to production + loss of skilled UK-based staff who contribute to innovation + quality (Extract F).

Judgement=While relocating could enhance cost competitiveness, the financial risk + impact on Ebac’s innovative UK operations make it a long-term strategic choice rather than an immediate solution.

Point=Alternatively, Ebac could reduce selling prices to match competitors like Indesit + Hotpoint without relocating production.

Effect=Lower prices could make products more attractive to price-conscious European consumers, helping to recover lost market share from the 55% fall in sales since 2016.

Consequence 1=This strategy could boost short-term sales + maintain Ebac’s presence in the European market.

Consequence 2=However, reducing prices without cutting production costs may squeeze profit margins, limiting funds for reinvestment + innovation (Extract F).

Judgement=Reducing prices is less risky + faster to implement than relocating, but it may not be sustainable in the long term if costs remain high.

Conclusion=The most appropriate option is for Ebac to initially reduce selling prices to regain market share quickly while exploring cost-saving measures, including possible partial relocation or efficiency improvements, to ensure long-term competitiveness in Europe.

Taco Bell's objective in Brazil is to open 200 locations by 2027. It could achieve this growth either by selling franchises or by opening company-owned outlets. Evaluate these options and recommend which one is most likely to lead to Taco Bell's growth in Brazil (20)

Point=Taco Bell could expand in Brazil by selling franchises, allowing independent operators to open + run outlets under the Taco Bell brand (Extract D).

Effect=This would reduce the capital investment + financial risk for Taco Bell, as franchisees fund the setup + day-to-day operations of new locations.

Consequence 1=Franchising could allow rapid expansion towards the 200-location target by 2027, as growth is not limited by Taco Bell’s own resources.

Consequence 2=However, maintaining consistent quality + brand image may be more challenging with franchises, especially in a diverse + heavily regulated market like Brazil (Extract G).

Judgement=Franchising offers speed + lower financial risk, but requires robust franchisee training + monitoring systems to ensure standards are maintained.

Point=Alternatively, Taco Bell could expand by opening company-owned outlets, retaining full control over operations, menu + brand experience (Extract E).

Effect=Company ownership ensures consistent quality, brand image + customer experience, which is important in a competitive fast-food market + for building customer loyalty.

Consequence 1=Growth may be slower because Taco Bell must fund the full investment in each new store, including property, staff + equipment.

Consequence 2=High upfront costs + currency fluctuations (Extract F) could affect profitability + delay reaching the 200-location target.

Judgement=Company-owned outlets provide stronger control + brand protection but are slower + more capital-intensive, potentially limiting rapid market penetration.

Conclusion=The most suitable strategy is likely a combination: initially expand with company-owned outlets to establish the brand + ensure quality, then scale rapidly using franchising to reach the 200-location target by 2027 while managing financial risk + maintaining brand standards.

Using the data in Extract E, calculate the percentage of the world's top 25 exporting economies that have costs of production above those of the United Kingdom in 2014. You are advised to show your working (4)

Using the data in Extracts E and F, calculate the amount Pfizer would have saved in 2014 if it had paid corporation tax in Ireland, rather than the USA. You are advised to show your working. (4)

For people in developing countries, purchasing a pair of VisionSpring glasses may be considered as an investment. Using the data in Extract B, calculate the average rate of return from purchasing a pair of glasses. You are advised to show your working (4)

Using the data in Extract D, calculate the percentage growth in the total McDonald’s restaurants operating in Brazil, between 2012 and 2018. State your answer to 2 decimal places. You are advised to show your working. (4)