CIE IGCSE Topical Past Paper 1

4.4 Location Decisions

0450/11/O/N/2024

RSL manufactures paint using flow production. Last year it produced 10 million litres of paint. RSL has 6 managers and 80 employees working in its factory. The managers use different leadership styles. RSL uses email and telephone calls as its methods of internal communication. The Operations Manager wants to understand why some manufacturing businesses are relocating their operations to other countries.

(e) Explain two factors a manufacturing business should consider when relocating its operations to another country. Which factor is likely to be the most important? Justify your answer.

0450/12/F/M/2024

Suliman owns a small business which sells t-shirts on its website. He operates as a sole trader. Suliman is analysing data for his existing business. An extract from this data is shown in Table 4.1. Suliman wants to open his first shop and needs to decide on a suitable location. He is considering which type of sales promotion to use for the new shop.

Extract from Suliman’s data for his existing business
Break-even output	500 t-shirts
Current sales	550 t-shirts
Selling price per t-shirt	$3.99
Variable cost per t-shirt	$1.99

Table 4.1

(d) Explain two factors Suliman should consider when deciding on a suitable location for the new shop. [6]