GAE is a multinational company. It manufactures steel. GAE has 2400 employees and has factories in 4 countries. The business regularly introduces new technology. Holding inventory is important. GAE's directors are planning to build a new factory and want to know how legal controls over location might affect this decision. The Managing Director said, 'The new factory will create many external benefits.' Define 'external benefits'. .......................................................................................................................................
Exam No：0450_s25_qp_13 Year：2025 Question No：3(a)
Answer:
Award 2 marks for a full definition. Award 1 mark for a partial definition.
- Gains to the rest of society other than the business as a result of business activity [2]
Partial definition e.g.
- Gains to the rest of society / third party [1]
- Gains to the rest of society other than the business as a result of business activity [2]
Partial definition e.g.
- Gains to the rest of society / third party [1]
Knowledge points:
6.1.1.1. Main stages of the business cycle, e.g. growth, boom, recession, slump
6.1.1.2. Impact on businesses of changes in employment levels, inflation and Gross Domestic Product (GDP)
6.1.2.1. Identify government economic objectives, e.g. increasing Gross Domestic Product (GDP)
6.1.2.2. Impact of changes in taxes and government spending
6.1.2.3. Impact of changes in interest rates
6.1.2.4. How businesses might respond to these changes
Solution:
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