Mark scheme ( Results)

October 2021

Pearson Edexcel International Advanced

Subsidiary In Business (WBS14/01)

Unit 4: Global business

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October 2021
Paper Log Number P67000A
Publications Code WBS14_01_2110
All the material in this publication is copyright
© Pearson Education Ltd 2021
General Marking Guidance

• All candidates must receive the same treatment. Examiners must mark the
first candidate in exactly the same way as they mark the last.
• Mark schemes should be applied positively. Candidates must be rewarded
for what they have shown they can do rather than penalised for omissions.
• Examiners should mark according to the mark scheme not according to their
perception of where the grade boundaries may lie.
• There is no ceiling on achievement. All marks on the mark scheme should be
used appropriately.
• All the marks on the mark scheme are designed to be awarded. Examiners
should always award full marks if deserved, i.e. if the answer matches the
mark scheme. Examiners should also be prepared to award zero marks if
the candidate’s response is not worthy of credit according to the mark
scheme.
• Where some judgement is required, mark schemes will provide the principles
by which marks will be awarded and exemplification may be limited.
• When examiners are in doubt regarding the application of the mark scheme
to a candidate’s response, the team leader must be consulted.
• Crossed out work should be marked UNLESS the candidate has replaced it
with an alternative response.
General Marking Guidance

• All candidates must receive the same treatment. Examiners must mark the
first candidate in exactly the same way as they mark the last.

• Mark schemes should be applied positively. Candidates must be rewarded

for what they have shown they can do rather than penalised for omissions.

• Examiners should mark according to the mark scheme not according to

their perception of where the grade boundaries may lie.

• There is no ceiling on achievement. All marks on the mark scheme should

be used appropriately.

• All the marks on the mark scheme are designed to be awarded. Examiners
should always award full marks if deserved, i.e. if the answer matches the
mark scheme. Examiners should also be prepared to award zero marks if
the candidate’s response is not worthy of credit according to the mark
scheme.

• Where some judgement is required, mark schemes will provide the

principles by which marks will be awarded and exemplification may be
limited.

• When examiners are in doubt regarding the application of the mark scheme
to a candidate’s response, the team leader must be consulted.

• Crossed out work should be marked UNLESS the candidate has replaced it
with an alternative response.

• Mark schemes will indicate within the table where, and which strands of
QWC, are being assessed. The strands are as follows:

i) ensure that text is legible and that spelling, punctuation and grammar
are accurate so that meaning is clear
ii) select and use a form and style of writing appropriate to purpose and to
complex subject matter
iii) organise information clearly and coherently, using specialist vocabulary
when appropriate.
Question Answer Mark
1(a) Knowledge 1, Application 2, Analysis 1

Quantitative skills assessed:

QS3: construct and interpret a range of standard graphical
forms.

Knowledge
1 mark for correctly constructing a supply and demand
diagram with correctly labelled axes as ‘price’ and ‘quantity’
(1)

Application
Up to 2 marks for: Showing supply and demand curves with
original equilibrium (1)
Shifting the demand curve to the right (1)

Analysis
1 mark for showing the new equilibrium and its effect on
price (increasing) and quantity demanded (increasing) (1)

(4)
Question Answer Mark
1(b) Knowledge 1, Application 2, Analysis 1

Knowledge
1 mark for correctly explaining a characteristic of a
developed economy e.g.:
• Reliance on tertiary sector of the economy (1)

Application
Up to 2 marks for contextualised answers, e.g.:
• Other examples of developed economies include US,
UK, New Zealand and Germany (1)
• Australia’s services sector comprises 62.7% of GDP
and employs 78.8% of the labour force (1)

Analysis
1 mark for developing the explanation. E.g.:
• The Australian economy has moved away from primary
and secondary production and is now reliant mainly on
the tertiary sector and is therefore a developed
economy (1)

(4)
Questio Indicative content
n
1(c) Indicative content guidance
Answers must be credited by using the level descriptors (below) in line
with the general marking guidance. The indicative content below
exemplifies some of the points that candidates may make but this does
not imply that any of these must be included. Other relevant points must
also be credited.

Knowledge, Application, Analysis, Evaluation – indicative

content

• FDI means that capital is being invested in the productive

capacity of the Vietnamese economy
• It has increased every year for ten years
• South Korea invested $7.9bn and Apple is to move production of
AirPods there
• This will create jobs lowering unemployment
• As incomes rise so does GDP
• The balance of payments is likely to improve as manufactured
goods such as Apple’s AirPods are exported
• Tax revenues should increase enabling greater levels of
government spending
• However, if growth is too rapid, inflation might occur
• FDI can cause negative impacts such as environmental damage

Level Mark Descriptor

0 No rewardable material.
Level 1 1–2 Isolated elements of knowledge and understanding – recall
based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–5 Accurate knowledge and understanding.
Applied accurately to the business and its context.
Chains of reasoning are presented, showing cause(s) and/or
effect(s) but may be assertions or incomplete.
An attempt at an assessment is presented that is unbalanced and
unlikely to show the significance of competing arguments.
Level 3 6–8 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Logical chains of reasoning, showing cause(s) and/or effect(s).
Assessment is balanced, well contextualised, using quantitative
and/or qualitative information, and shows an awareness of
competing arguments/factors.
Questio Indicative content
n
1(d)
Indicative content guidance
Answers must be credited by using the level descriptors (below) in line
with the general marking guidance. The indicative content below
exemplifies some of the points that candidates may make but this does
not imply that any of these must be included. Other relevant points must
also be credited.

Knowledge, Application, Analysis, Evaluation – indicative

content

• Ease of doing business refers to the number and severity of

barriers a business faces when entering a new market/country. A
high ranking means a business faces fewer barriers
• Such barriers include; dealing with/amount of government
regulations, access to energy sources, tax regimes, employment
law and enforcing contracts
• Choosing a production location in a country with a high Ease of
Doing Business ranking means it is quicker and less costly to set
up and run a business
• This may be important if a business needs to get ahead of
potential rivals or if set-up costs are potentially large
• Although Vietnam is 70th, it still has a higher ranking than
neighbouring countries Cambodia (144th) and Laos (154th)
• For a business wanting to locate in this area, Vietnam’s ranking
may be the determining factor
• However, other factors may be more important such as the cost
and availability of unskilled/skilled labour, access to raw
materials, infrastructure and political stability
• Extract B suggests that Vietnam may need to improve the supply
chain and the skills of its workforce, this may deter potential
investors despite the ease of doing business
• Some businesses such as oil, gas and mining need to locate near
the source regardless of the ease of doing business
• Much depends on the nature of the business and its needs
Level Mark Descriptor
0 A completely inaccurate response.
Level 1 1–2 Isolated elements of knowledge and understanding – recall
based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–4 Elements of knowledge and understanding, which are applied to
the business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3 5–8 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative
and/or qualitative information, though unlikely to show the
significance of competing arguments.
Level 4 9 –12 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s)
and/or effect(s).
Assessment is balanced, wide ranging and well contextualised,
using quantitative and/or qualitative information and shows an
awareness of competing arguments/factors, leading to a
supported judgement.
Questio Indicative content
n
1(e)
Quantitative skills assessed
QS9: interpret, apply and analyse information in written, graphical and
numerical forms

Indicative content guidance

Answers must be credited by using the level descriptors (below) in line
with the general marking guidance. The indicative content below
exemplifies some of the points that candidates may make but this does
not imply that any of these must be included. Other relevant points must
also be credited.

Knowledge, Application, Analysis, Evaluation – indicative

content

• Globalisation is the process by which an increasingly free flow of

ideas, people, capital and trade connects economies and
societies and increases integration between them
• Trade liberalisation is the reduction, and sometimes removal, of
trade barriers between countries
• The EU-Vietnam trade agreement is an example of trade
liberalisation and will contribute to increased globalisation
• Such moves make trading easier as there are fewer regulations
and procedures to follow
• It also makes trading cheaper as there are fewer/no tariffs and
delays
• As a result, trade increases, thus strengthening the links and ties
between economies
• Economies become less self-sufficient more specialised and more
reliant on other economies and trade for the goods they do not
produce
• In other words, globalisation increases
• However, trade liberalisation is not the sole driver of
globalisation
• FDI enables MNCs to expand and locate in other economies, this
often brings in new ideas and technologies
• The WTO has been responsible for the encouragement of free
trade and resolving trade disputes
• Expanding free trade areas such as the EU or ASEAN break down
barriers
• Political change such as the opening up of Eastern Europe and
China have speeded the process of globalisation
• Trade liberalisation is important but is just one of the factors
responsible and is dependent on the others
Level Mark Descriptor
0 A completely inaccurate response.
Level 1 1–2 Isolated elements of knowledge and understanding – recall
based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–4 Elements of knowledge and understanding, which are applied to
the business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3 5–8 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative
and/or qualitative information, though unlikely to show the
significance of competing arguments.
Level 4 9 –12 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s)
and/or effect(s).
Assessment is balanced, wide ranging and well contextualised,
using quantitative and/or qualitative information and shows an
awareness of competing arguments/factors, leading to a
supported judgement.
Questio Indicative content
n
2
Indicative content guidance
Answers must be credited by using the level descriptors (below) in line
with the general marking guidance. The indicative content below
exemplifies some of the points that candidates may make but this does
not imply that any of these must be included. Other relevant points must
also be credited.

Knowledge, Application, Analysis, Evaluation – indicative

content

• The marketing mix is the range of variables that a business can

use to effectively market a product or service
• Often referred to as the 4 ‘Ps’ - Price, Product, Promotion and
Place
• Promotion is all the activities that a business uses to
communicate with potential and actual consumers to raise
awareness and make sales
• Promotion builds consumer loyalty, encourages repeat purchases
and can enable premium pricing. It is a source of competitive
advantage
• Successful promotion gains recognition and becomes known on a
global scale such as Coca-Cola’s bottle/red and white lettering or
McDonald’s golden M arches
• New products such as those in Extract E are unknown to
consumers and likely to have many substitutes
• Therefore, good promotion is essential if they are to become
stars
• Despite the $5.6m price tag for a 30 second advert they will
become known to 100 million potential consumers and promotion
is crucial
• Product is the actual product or service and its use, function and
desirability in the eyes of the consumer
• Consumers are unlikely to buy, or continue to buy a product if it
is not something that gives satisfaction
• Coca-Cola has developed Power Water and Ultra because the
older products were no longer relevant to consumer needs
• Promotion would not increase the sales of the older products, it
is the new product that is more important
• However, other parts of the marketing mix (the other Ps, Price
and Place) may be just as, or even more, important when
trading globally
• Price can be an issue when marketing globally, particularly in
less developed economies. Elsewhere high price signifies
desirability
• In some parts of the world place is more important and just
getting the product to the consumer can be the most important
consideration.
 • While promotion at the Super Bowl may be important, unless the
products appeal to consumers they are unlikely to make repeat
purchases
• While the new sports drinks may be better suited to today’s
consumers, they will not buy them unless they are made aware
of them by promotion
• Promotion and product cannot be taken in isolation, they are
part of the mix and their importance will vary with the particular
circumstances of the business that is trading internationally
• Whether one is more important than the other depends on the
nature of the product and its place in the product life cycle
Level Mark Descriptor
0 No rewardable material.
Level 1 1–4 Isolated elements of knowledge and understanding.
Weak or no relevant application of business examples.
An argument may be attempted, but will be generic and fail to
connect causes and/or consequences.
Level 2 5–8 Elements of knowledge and understanding, which are applied to
the business example.
Arguments and chains of reasoning are presented but
connections between causes and/or consequences are
incomplete. Attempts to address the question.
A comparison or judgement may be attempted but it will not
successfully show an awareness of the key features of business
behaviour or business situation.
Level 3 9–14 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Uses developed chains of reasoning, so that causes and/or
consequences are complete, showing an understanding of the
question.
Arguments are well developed.
Quantitative and/or qualitative information is introduced in an
attempt to support judgements, a partial awareness of the
validity and/or significance of competing arguments and may
lead to a conclusion.
Level 4 15– Accurate and thorough knowledge and understanding, supported
20 throughout by relevant and effective use of the business
behaviour/context.
Uses well-developed and logical, coherent chains of reasoning,
showing a range of cause and/or effect(s).
Arguments are fully developed.
Quantitative and/or qualitative information is/are used well to
support judgements. A full awareness of the validity and
significance of competing arguments/factors, leading to balanced
comparisons, judgements and an effective conclusion that
proposes a solution and/or recommendations.
Questio Indicative content
n
3
Quantitative skills assessed
QS9: interpret, apply and analyse information in written, graphical and
numerical forms

Indicative content guidance

Answers must be credited by using the level descriptors (below) in line
with the general marking guidance. The indicative content below
exemplifies some of the points that candidates may make but this does
not imply that any of these must be included. Other relevant points must
also be credited.

Knowledge, Application, Analysis, Evaluation – indicative

content

• Environmental considerations include emissions and waste

disposal
• Emissions and waste disposal are by-products of production and
are harmful to the environment
• Emissions include gases and particles emitted by vehicles and
energy consumption
• Waste is usually a physical product that has to be disposed of
and may be harmful
• Sustainability refers to being able to meet present needs without
damaging or compromising the needs of the future
• There is growing awareness on behalf of consumers of the
damage emissions and lack of sustainability do to the
environment and human health and well-being
• There is therefore pressure on businesses to act in a more
sustainable and environmentally friendly manner
 • IKEA is showing that all of its cotton use is now more sustainable
and that timber sustainability is improving from 77% in 2017 to
85% in 2018
• Its emissions (although increasing between 2016 and 2017 by
19%) did fall by 15% by 2018
• This shows that IKEA is investing a lot of money into these
areas, which is likely to increase costs and reduce profitability
• Owners of IKEA and other investors may prefer to maximise
profits for personal gain or for investment into further expansion
of the business
• Employees may feel the same and wish to have a wage increase
instead
• To restore profitability prices may be increased which consumers
may not like
• However, given the increasing environmental awareness of
consumers, IKEA’s stance may attract new ones and encourage
existing ones
• Consumers may be happy to support IKEA’s aims and pay a little
extra
• Sales may increase as a result of IKEA’s ongoing actions perhaps
leading to long-term growth and increased profitability
• Employees may feel more secure and accept financial rewards in
the long run
• There may be little or no conflict if all stakeholders share the
vision of Torbjörn Lööf

Level Mark Descriptor

0 No rewardable material.
Level 1 1–4 Isolated elements of knowledge and understanding.
Weak or no relevant application of business examples.
An argument may be attempted, but will be generic and fail to
connect causes and/or consequences.
Level 2 5–8 Elements of knowledge and understanding, which are applied to
the business example.
Arguments and chains of reasoning are presented but
connections between causes and/or consequences are
incomplete. Attempts to address the question.
A comparison or judgement may be attempted but it will not
successfully show an awareness of the key features of business
behaviour or business situation.
Level 3 9–14 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Uses developed chains of reasoning, so that causes and/or
consequences are complete, showing an understanding of the
question.
 Arguments are well developed.
Quantitative and/or qualitative information is introduced in an
attempt to support judgements, a partial awareness of the
validity and/or significance of competing arguments and may
lead to a conclusion.
Level 4 15– Accurate and thorough knowledge and understanding, supported
20 throughout by relevant and effective use of the business
behaviour/context.
Uses well-developed and logical, coherent chains of reasoning,
showing a range of cause and/or effect(s).
Arguments are fully developed.
Quantitative and/or qualitative information is/are used well to
support judgements. A full awareness of the validity and
significance of competing arguments/factors, leading to balanced
comparisons, judgements and an effective conclusion that
proposes a solution and/or recommendations.