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Exam-style case study














                                                                                          Country Z
                                                      Country Y
                                         Member of a few regional trade agreements. Not a member of any trade agreements.
                   Economic trade unions                                     Country Z has had two elections in the last
                   Political stability   The country has been politically stable   four years.
                                         and is a peaceful country. Although the
                                         elections are coming up and the political
                                         party in power may change.
                   Infrastructure        Power availability and rail networks are   The road and rail networks within the
                                                                             country are very good. The country suff  ers
                                         quite good, although the road network
                                          and technological development are quite   from a shortage of reliable power supply.
                                          poor. The country also has two ports that it  Technological advancement is one of the
                                          currently uses for international trade.  country’s main objectives and it is exploring
                                                                              alternative sources of energy to improve its
                                                                              power supply. Transportation by air is the
                                                                              main means of international trade.






              Appendix 3

              Below is an extract from a local newspaper in Country Z:                                                     341
                Threat of closure due to anti world trade sentiments

                Pressure groups have been lobbying against the operations of the multinational company ABC. The company just started
                operations fi ve months ago and already faces the threat of closure. The pressure groups claim that the local businesses have
                been affected badly ever since ABC has fl ooded the local market with its goods. The pressure groups are also concerned
                about the external costs and damage to the environment caused by multinational companies in the country.




           1 a   Discuss two benefi ts and two disadvantages that       b  Explain the advantages and disadvantages of each
                 the host country, Country Z, will have because of        country and recommend which country
                 Halo Enterprises setting up operations there as a        (Y or Z) Halo Enterprises should set up
                 multinational.                                           operations in. Justify your answer.

                 Benefi t 1:                                               Features of Country Y:
                 Explanation:                                             Features of Country Z:

                 Benefi t 2:                                               Recommendation:
                 Explanation:                                                                                      [12]

                 Disadvantage 1:
                 Explanation:
                 Disadvantage 2:

                 Explanation:
                                                            [8]
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