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GCE JAN 2008 : (A2 12) The Global Market

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ADVANCED General Certificate of Education January 2008 GCE Applied Business assessing The Global Market A6B61 Assessment Unit A2 12 [A6B61] FRIDAY 18 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 Question 1. 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. If you do not have sufficient space to complete your answers, you may use the additional pages at the back of the booklet. A6B61W8 3444 Case Study Study the information below and answer ALL the questions that follow. Bombardier Aerospace Bombardier Aerospace is a world leader in the design and manufacture of innovative aviation products and services for the business, regional and amphibious aircraft markets. In 2002/3 the company had revenues of $11.3 billion (Canadian) and 28 000 employees worldwide. Short Brothers plc based in Northern Ireland manufactures aircraft components, engine nacelles and nacelle components for Bombardier Aerospace or under contracts with Boeing, Rolls-Royce Deutschland, General Electric and Pratt & Whitney. Short s position as the chosen centre of excellence within the Bombardier Group in its areas of core competency has been evidenced by its participation in the design and manufacture of 12 of the last 14 aircraft programmes undertaken by Bombardier. Bombardier s Northern Ireland operations are at the forefront of advanced techniques such as three-dimensional digital modelling and concurrent engineering. These have enabled the company to develop highly cost effective, fast track programmes that have significantly reduced the timescales needed to bring new products to market. As a result of a $4bn investment in new business and regional aircraft by Bombardier over the last eight years, the Belfast operation has developed and manufactured fuselages, engine nacelles or other substantial components for a total of eight Bombardier aircraft. No other aerospace company has undertaken investment in such a range of new aircraft in such a short period of time. Bombardier Aerospace announced recently that Mesa Air Group, Inc. of Phoenix, Arizona has placed a firm order for a total of 20 Bombardier CRJ700 and CRJ900 regional jets. Major components for these aircraft are manufactured in Northern Ireland. Bombardier has embarked on a joint venture with CST of Berlin to provide flight simulation training for pilots. In another joint venture with ExecuJet Aviation and Alpha 55 of Dubai, Bombardier has made a major move into the Middle East by opening a key facility in the United Arab Emirates, which has the capability of accommodating two Global Express aircraft simultaneously, together with a spare parts depot. With a workforce regarded as one of the best educated in Bombardier s global operations, the Northern Ireland facilities rely heavily upon local universities to source engineering graduate talent and expertise. It has established close links with Queen s University and the University of Ulster with whom it has developed a range of tailor-made post-graduate and management development courses. In addition, the company sponsors a Chair in Aeronautical Engineering at Queen s University as well as a number of important research projects, and invests 1% of profits each year in local charitable and educational projects. Laurent Beaudoin, Chairman, Bombardier stated Our workforce in Northern Ireland is one of the best educated in our group. Our plant in Northern Ireland is competitive on a world scale basis. Sources: http://www.investni.com, http://www.bombardier.com A6B61W8 3444 2 [Turn over 1 Explain the term global trading and why it is important to the Northern Ireland economy. [3] 2 Discuss three benefits to Bombardier that have resulted from its global trading activities. [9] 3 Discuss three advantages of a trade agreement such as the North American Free Trade Agreement (NAFTA) for an organisation like Bombardier. [9] 4 Analyse five factors that Bombardier would have considered when trading globally. [15] 5 Evaluate the impact of five barriers to trade upon a business such as Bombardier. [20] 6 Evaluate Bombardier s decision to embark on a joint venture. [24] THIS IS THE END OF THE QUESTION PAPER A6B61W8 3444 3 S 3/07 302-031-1 4 [Turn over

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Additional Info : ce Applied Business January 2008 Assessment Unit A2 12 - The Global Market
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