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GCE JAN 2007 : (A2 12) The Global Market

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ADVANCED General Certificate of Education January 2007 GCE Applied Business assessing The Global Market A6B61 Assessment Unit A2 12 [A6B61] FRIDAY 19 JANUARY, MORNING TIME 1 hour 30 minutes. INSTRUCTIONS TO CANDIDATES Write your Centre Number and Candidate Number on the Answer Booklet provided. Answer all six questions. INFORMATION FOR CANDIDATES The total mark for this paper is 80. Quality of written communication will be assessed in all questions except Questions 1 and 2. Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question. ADVICE TO CANDIDATES You are advised to take account of the marks for each part question in allocating the available examination time. A6B61W7 2893 Case Study Study the information below and answer ALL the questions that follow. Seagate announces 300 new jobs at its Northern Ireland Factories. Limavady and Springtown plants to benefit from 83 million investment It was announced on 13th December 2005, by the Secretary of State for Northern Ireland, Mr Peter Hain, that Seagate Technology, Springtown, Northern Ireland, is investing 83 million in two of its Northern Ireland factories situated at Limavady and Springtown. It is anticipated that the investment will create 300 new jobs and consolidate Seagate as the world s leading supplier of hard disc drives. This includes an investment of 24.82 million from Invest Northern Ireland, the economic development agency. The Secretary of State said The announcement will see the Springtown plant, already recognised as the most advanced nanotechnology manufacturing facility in the UK, become Seagate s main global manufacturing facility and a key development site for read-write heads for computer hard drives. It will also enable the Limavady plant to produce a wider range of aluminium substrates for integration into Seagate s hard disc drive products. The investment will create significant new quality employment opportunities in advanced manufacturing in the North West . He continued, The Company s decision to expand here is a testament to the skills and abilities of the local work force. As Seagate Technology continues to spend more on research and development than any of its competitors, this new investment project will consolidate the position of the Northwest as a leading Centre of Excellence for nanotechnology research and development in the UK. The Limavady plant manager Dr Burns, said the investment in Limavady would help the development and implementation technologies to support Seagate s leadership position: As the digital era continues to gather pace and the demand for digital storage becomes greater and greater, Seagate is uniquely positioned to benefit. The company sees great opportunities not just in the more traditional areas of computer storage but also in the fast developing consumer electronics environment. These opportunities mean that Seagate is producing a wider range of products and the investment in Limavady will allow the plant to participate in many more of these. Our status as a recognised Centre of Excellence for development and manufacture reflects our determination to produce substrates to the highest standards in the industry. Mr John Sprangler, Seagate vice president and plant manager at Springtown said the investment was excellent news for Seagate. Since we first set up in Northern Ireland in 1993, we have invested heavily in our people and in our technology to ensure that we are the leading edge of read-write head manufacturing for hard disc drives. Operational flexibility and our ability to attract a high-calibre workforce have been key elements in our success. This new investment will enable Springtown to continue with success into the future. Mr Sprangler also said that the local community would benefit significantly as the number of people working at Seagate s two factories in the North west would rise to over 2100, with an annual wage bill of over 45 million. In addition the company spends some 11 million annually on locally sourced goods and services. Source: adapted from http://www.seagate.com/cda/newsinfo/newsroom/releases/article/0,1121,2913,000.html A6B61W7 2893 2 [Turn over 1 Explain how important global trade is to Northern Ireland using an example from the case study. [4] 2 With reference to the case study, explain why Seagate trades globally. 3 Discuss the benefits to Seagate of locating in Northern Ireland. [12] 4 Discuss six ways that the World Trade Organisation (WTO), has helped Seagate to counteract barriers to trade. [18] [6] 5 Evaluate how global trading can affect both Seagate and the Northern Ireland economy. [20] 6 Evaluate how Invest Northern Ireland (INI) can help a company such as Seagate to trade globally. [20] THIS IS THE END OF THE QUESTION PAPER A6B61S7 2893 3 [Turn over S 8/06 500 61-001(1) 4 [Turn over

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