Fig. 1 shows a sports-shoe factory near Ho Chi Minh City, Vietnam. The factory is owned by a supplier working for an international brand. Components arrive ...
Question 1 Report
Fig. 1 shows a sports-shoe factory near Ho Chi Minh City, Vietnam. The factory is owned by a supplier working for an international brand. Components arrive from several Asian countries, and finished shoes are shipped to global markets. The brand has introduced an audit system after reports that overtime and factory waste were not being monitored effectively.
Identify the business type represented by the international brand. [1]
Identify two reasons why production is spread across several countries. [2]
Identify one issue that an audit of working conditions should check. [1]
Identify two ways better waste management could benefit the factory and its surrounding urban area. [2]
Answer Details
(a) The international brand is a transnational corporation (TNC), also called a multinational company. It operates through production and sales links in more than one country. [1]
(b) Production may be spread between countries because:
- different locations provide specialist components;
- firms can use locations with lower costs or large labour forces.
Proximity to suppliers or ports and trade agreements are also valid. [2]
(c) An audit should check overtime hours. Wages, safety equipment, fire exits and child labour are also valid working-condition issues. [1]
(d) Better waste management can:
- reduce water or soil pollution, improving health for nearby residents;
- recover materials and reduce costs for the factory.
It can also improve reputation and help the factory meet environmental rules. [2]
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