O/A level study resources helps you- commerce basic note and solved past paper



Question IGCSE O level Past Paper  




ANS:
a) Distinguish between advertising and sale promotion (4)
 Ans:
Advertising is an indirect approach towards encouraging customers to buy a firm’s products or services. it is a  form of mass communication which can take a form of television, radio, magazines, newspaper, and internet placements. Its aim is not only to increase sales in a short to mid-term but also to strengthen the brand image of the firm and its products and services to develop long term sales and consumer loyalty. However, Sales promotion is a direct approach to customers to encourage them to buy your products or services. it is a well-suited technique for small or medium-sized firms as it is easy to set up and it provides a short term gain. So the main objective of promotion is to get maximum sales quickly.
b) State two advantages of using leaflets for advertising (2)

i. Cost-effective. Leaflets are a highly affordable way to market your brand, especially when compared to other forms of print and digital advertising.
ii. Full of information. Leaflet space can be used to contain useful information about the firm. the firm can easily attach product details, and also include evergreen information like contact details, addresses, website URL’s and emails – acting almost like a business card.

c)i. Describe two Actions taken by Claire.
      
  i. Apologize: Sincerely convey to the customer Claire’s apology for the way the situation has made them feel. This is not the time for preachy reasons, justifications, or excuses; the firm must apologize.
ii.Seek the Best Solution: Determine what the customer is seeking as a solution. Ask them; often they’ll surprise Clare for asking for less than it initially thought the firm would have to give—especially when they perceive its apology and intention is genuinely sincere.

ii. Overcharged, bulk buying


d) Discuss whether or not Claire should set up a website for its current sales promotion (8)

ANS:
With a website, customers can easily access information about Claire’s business. They can see what products or services you sell, its prices, its location, and much more. Online advertisement is cost-effective. Online advertisement is less expensive than a print advertisement. A website can reach the business around the world and wider its demographic reach. A tip-top website can help the firm to grow wider. Having a website means the products are available all the time on the internet. Customers can access products easily online without any interactions. This is the best benefits of a website around the clock availability. Also, a strategically planned website can effectively attract the targeted audience. It can also help in creating a relationship with their customers. So, it is up to the firm to fulfill every desire and satisfied its customers.
However, on the other hand, the information on the website might be unreliable if not updated on a regular basis. You need to ensure that changes are made when necessary and have a disclaimer with regards to the reliability of the information contained within. The main drawback of having a website is lack of security.it is a difficult issue to maintain a website keeping privacy of business information. The important information that firms share on websites is completely traceable. This is one of the disadvantages of a website which can cause the firm some grief. With a contact form or e-mail address published on its website, the firm will soon find its inbox filling up with spam e-mails unless firm use. 
Recommendation: In my opinion, Claire should set up a website to continue its current sales promotion. Because a website can generate business, promote goodwill among customers and prospects, and deliver strong marketing messages - whether your business is small, large, or in-between, well-established, or brand-new.

Q.2.
a)      write the differences between visible and invisible export (4)
Ans: Visible export means selling physically tangible goods to other countries as a part of visible trade, and re-export of goods at various stages of production. It includes machinery, rice, wheat, cloth, spices, etc. Higher visible export of a country means a higher balance of trade. It is distinguished from invisible export, which involves the export of all intangible items such as services. It includes shipping, banking, tourism, investment services, education, unilateral transfers, etc. Higher invisible export means the higher balance of invisible trade of a country.
b)i. year 2012
ii. Balance of Payment = visible & invisible exports – Visible & invisible imports
                                          = $8 billion - $6.5 billion
                                           = $1.5 billion

c)Explain two effects on the BOP of the development of mines to extract the ore.  (4)
i.Increase exports. The development of mines to extract the ore leads to increase net export of a country. Higher Net export means a surplus balance of payment.
ii.Positive current account balance. Mining development means higher received from other countries due to export ore in the world. As a result, it creates a positive current account balance as well as a positive balance of payment of the country.

d) i. Rail transportation is by far the most common mode of ore carrying.
ii. On-highway trucks are also suitable if distances and shipment sizes are small.
e) Discuss whether or not the GVT Should allow the multinational for mining development. (6)
MNCs are likely to set up the country because multinational companies create a significant level of employment opportunities at the local level around the world. Through job creation, MNCs are able to help improve standards of living in the countries where they operate in mining development. But perhaps more importantly, they increase overall expertise within an economy. If the government accepts this offer, developing countries should focus not only on creating jobs but on creating good jobs. , these companies can transform an economy quickly by providing new tools, educational resources, and financing that can shift the development for the entire economy. It also increases GDP of the country very quickly.
However, on the other hand, Multinational companies have often been criticized for their cost-cutting practices, resulting in poor working conditions and low wages paid to workers in some countries. So, employee exploitation and employment discrimination is the common negative side effect of MNC in employment in host countries. It may create hinder the growth of local mining firms due to greater competition.

So, therefore, the government should allow the MNCs in mining development to increase productivity and supply of the country.