Growth implications

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
- Economic growth is when GDP rises, employment patterns refer to
how a country's population is employed/distributed in terms of sectors
- Prior to 2000, Vietnam was an emerging economy with many people
employed in the primary sector
- Since 2000 the GDP of Vietnam has steadily increased, it more than
doubled between 2010 and 2020
- Employment is likely to have moved from the primary to the
manufacturing sector
- In the case of Vietnam its exports of goods and services tripled in this
period
- Increase in services would indicate a rise in the size of the tertiary
sector
- However, whether economic growth itself has caused the change is
not certain
- Many countries have invested (FDI) in economies such as Vietnam to
take advantage of low labour costs
- This may have been the driver behind changing employment patterns,
which then caused economic growth.


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.


Question
Number


Assess how economic growth in developing economies may affect the trade opportunities for European businesses.

Indicative content

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
- As economic growth rises, disposable incomes rise, thus increasing the
demand for goods and services
- This means a huge and growing potential consumer market for many
European businesses and this is likely to lead to increased sales and
profitability
- As developing economies grow, they are likely to need not just
consumer goods such as fashions and luxury goods but services as
well
- Infrastructure will need input from engineering and transport
businesses. Communications systems and equipment will be needed
- European businesses have an opportunity to move away from
saturated western markets where growth may be limited, or difficult
and move to the new developing markets
- Product life cycles can be extended as models developed in European
markets can be introduced to the developing markets
- However, economic growth can mean that the developing economies
begin to develop their own industries
- Some Chinese (Haier, Lenovo) and Indian (Tata, Infosys) businesses are
amongst the biggest in the world and more than capable of innovation
and competing with European businesses on a global level
- Extract C shows that developing economies are increasing their share
of global exports of goods and services. By 2019 this had reached
44.3%
- Many of these exports may be cheaper than their European
competitors
- This increases pressure on European companies that may lose market
share
- European businesses that are innovative, or compete on quality, or
have strong brands should continue to thrive


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.


Question
Number


Assess the possible impact on businesses in countries such as Thailand and Vietnam from their membership of a trading bloc.

Indicative content