Do you think the Government should help businesses like SJD? Justify your answer.
Award 1 mark for identification of relevant point (s) [max 1] Award 1 mark for a relevant reference made to this business Award up to 2 marks for relevant development of point(s)
Award up to 2 marks for a justified decision made as to whether the Government should help businesses like SJD
Points for might include:
· protect jobs [k] as they plan to make 3500 redundant [app] which would increase unemployment [an] and the cost of paying unemployment benefits [an]
· protect the vital industry [k] of steel [app] to ensure supply in their own country [an]
· impact on other businesses [k] who need the material for construction [app]
· government could lose tax revenue if they fail [k]
Points against might include:
· there is an opportunity cost / helping businesses would require money from the government [k] money spent on helping SJD will reduce the money available for other projects [an]
· can obtain materials from other countries [k] as have access to cheap imports [app]
· environmental impact of business [k] as industry creates pollution [an]
· it is not the role of government [k] to help private sector business [app]
disincentive for businesses to be successful [k] this could lead to them being inefficient [an]
