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Text 1 Barclays plc Increased globalisation has led to more firms becoming multinational companies - OCR - GCSE Business - Question 16 - 2021 - Paper 1
Question 16
Text 1 Barclays plc Increased globalisation has led to more firms becoming multinational companies. Barclays plc is a multinational banking company. Its headquarte... show full transcript
Worked Solution & Example Answer:Text 1 Barclays plc Increased globalisation has led to more firms becoming multinational companies - OCR - GCSE Business - Question 16 - 2021 - Paper 1
Step 1
Identify two factors that have led to increased globalisation.
Answer
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Improved technology: Advancements in telecommunications and the Internet have enabled businesses to operate globally and communicate efficiently.
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Free trade agreements: The implementation of trade agreements between countries has reduced barriers to international trade, fostering global business operations.
Step 2
Explain one possible advantage to a business of operating as a multinational.
Answer
A key advantage of being a multinational is the ability to access larger markets. By operating in multiple countries, a business can expand its customer base, thereby increasing sales and potential profits. Additionally, it can diversify its investments and reduce dependence on the economic conditions of a single country.
Step 3
Identify two impacts that e-commerce might have on business activity.
Answer
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Increased reach: E-commerce allows businesses to connect with customers globally, expanding market opportunities.
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Cost reduction: By operating online, businesses can lower overhead costs associated with physical stores, such as rent and utility bills.
Step 4
Calculate, using the figures shown in Fig. 1, the number of Barclays plc's UK personal banking customers who are likely to have used online banking in 2020.
Answer
To find the number of customers likely using online banking in 2020:
Percentage using online banking in 2020 = 75%
Total UK personal banking customers = 24 million
Calculation:
Number of customers using online banking = 0.75 x 24,000,000 = 18,000,000
Therefore, approximately 18 million customers were likely to have used online banking in 2020.
Step 5
Analyse one way Barclays plc could treat its customers ethically.
Answer
Barclays plc could treat its customers ethically by ensuring transparent communication regarding financial products. This includes providing clear and comprehensive information about fees, terms, and conditions associated with their services. By doing so, the bank would build trust and foster long-term relationships with its customers, empowering them to make informed financial decisions.
Step 6
Identify two factors that may influence whether a business invests in new computer technology.
Answer
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Cost of technology: The initial investment and ongoing operational costs associated with implementing new technology can heavily influence a business's decision.
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Return on investment (ROI): Businesses will consider the expected financial returns from the new technology in relation to the costs involved. A higher expected ROI may encourage investment.
Step 7
Evaluate possible impacts on Barclays plc of investing in computer technology to provide online banking services to its customers.
Answer
Investing in computer technology can yield several impacts for Barclays plc:
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Improved efficiency: Automation and advanced systems can streamline processes, reducing the time taken for transactions and improving overall service quality.
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Enhanced customer experience: State-of-the-art online banking can offer customers user-friendly interfaces and secure platforms, boosting satisfaction and loyalty.
However, there could be downsides such as:
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Initial high costs: The expense of technology implementation and maintenance could strain the bank’s resources, especially if the anticipated returns do not materialize.
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Cybersecurity risks: Increased online presence heightens the risk of cyber-attacks, necessitating ongoing investment in security measures to protect customer data.
In conclusion, while investing in technology offers substantial advantages, the associated risks and costs must be carefully considered by Barclays plc.