The Government in country J wants to encourage international trade. Do you think this would be an advantage to Made Fresh? Justify your answer
Knowledge [2 × 1]: identifies advantages/disadvantages [2].
Analysis [2]: explain how factors could affect MF.
Evaluation [2]: reasoned judgement as to whether it is an advantage to MF or not. For two evaluation marks, the answer must be clearly in the context of this business.
Possible advantages include:
• access to materials not available in home country [k]
• access to new markets and products [k]
• means to raise international profile of business [k]
• increased sales by selling to larger global market [k]
• increased demand could increase production [k] so able to benefit from economies of scale [an]
• government might offer them grants/incentives [k].
Disadvantages include:
• increased competition [k] in home and international markets could mean that MF must offer lower prices [an]
• increased costs of transport if try to sell to overseas customers [k]
• increased costs of marketing [k] as need to promote business more so potential customers aware [an]
• possible shortage of some resources if other competitors set up in your home country [k].
Context could include: High quality crops produced, farm crops failing, branding, grown by local farmers, organic, recent bad weather, countries nearby