Mark Scheme (Results)

January 2025

Pearson Edexcel International Advanced Level

In Business (WBS14)
Paper 01: Global Business
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January 2025
Question Paper Log Number P78451A
Publications Code WBS14_01_2501_MS
All the material in this publication is copyright
© Pearson Education Ltd 2025
General Marking Guidance

• All candidates must receive the same treatment. Examiners

must mark the first candidate in exactly the same way as they
mark the last.
• Mark schemes should be applied positively. Candidates must
be rewarded for what they have shown they can do rather than
penalised for omissions.
• Examiners should mark according to the mark scheme not
according to their perception of where the grade boundaries
may lie.
• There is no ceiling on achievement. All marks on the mark
scheme should be used appropriately.
• All the marks on the mark scheme are designed to be awarded.
Examiners should always award full marks if deserved, i.e. if
the answer matches the mark scheme. Examiners should also
be prepared to award zero marks if the candidate’s response
is not worthy of credit according to the mark scheme.
• Where some judgement is required, mark schemes will
provide the principles by which marks will be awarded and
exemplification may be limited.
• When examiners are in doubt regarding the application of the
mark scheme to a candidate’s response, the team leader must
be consulted.
• Crossed out work should be marked UNLESS the candidate has
replaced it with an alternative response.
Question Using Extract A, calculate the number of Indonesians under the Mark
age of 15 in 2022. (4)

Answer
1(a) Knowledge 1, Application 2, Analysis 1

QS2 Calculate, use and understand percentages and percentage

changes

Knowledge
1 mark for identifying any suitable formula eg:
Population x % under the age of 15
100 (1)

Application
Up to 2 marks for selecting the correct data:
276,000,000 (1) x 26.2 (1)
100

Analysis
1 mark for calculating the number of Indonesians under the age of
15 in 2022

= 72,312,000 (1)

OR

= 72.312m (1)

NB: If no working is shown, award marks as follows:

If the answer given is 72,312,000 OR 72.312m award 4 marks.
(4)
Question Explain one advantage to the Indonesian economy of Foreign Mark
Direct Investment (FDI). (4)

Answer
1(b) Knowledge 1, Application 2, Analysis 1

Knowledge
1 mark for identifying an advantage, e.g.:
• Unemployment will be reduced (1)

Application
Up to 2 marks for contextualised answers, e.g.:
• Hyundai/CATL are building new factories (1)
• The unemployment rate is 5.83% (1)

Analysis
1 mark for developing the advantage, e.g.:
• Workers will be needed to help build the new factories and
then the factories will take on a permanent workforce both
of which will reduce unemployment (1)
(4)
Question Discuss the benefits of forming a joint venture for a global business such as
Hyundai. (8)

Indicative content
1(c) Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• A joint venture is when two or more independent businesses

collaborate on a specific venture
• Their differing knowledge, expertise and skills can be shared for
mutual synergistic benefit and profitability
• Hyundai is a car manufacturer and LG Energy Solution makes batteries
for EVs, therefore they both have a common interest in collaboration
• A joint venture can save Hyundai a great deal of time and expense as
they do not have to develop their own battery plant
• Hyundai is guaranteed a secure source of batteries to power its EVs
• LG Energy Solution has a guaranteed customer that will help with
innovation and the development of the product
• The costs and risks of the new venture are shared by the partners
• However, there may be problems with communication and/or a clash
of cultures, particularly if the partners are from different countries and
backgrounds
• Partners will have to share the profits as well
• A joint venture partner needs to be reliable and trustworthy, this has
not always been the case
Level Mark Descriptor
0 No rewardable material.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–5 Accurate knowledge and understanding.
Applied accurately to the business and its context.
Chains of reasoning are presented, showing cause(s) and/or effect(s)
but may be assertions or incomplete.
An attempt at an assessment is presented that is unbalanced and
unlikely to show the significance of competing arguments.
Level 3 6–8 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Logical chains of reasoning, showing cause(s) and/or effect(s).
Assessment is balanced, well contextualised, using quantitative and/or
qualitative information, and shows an awareness of competing
arguments/factors.
Question Assess the implications of specialisation for an emerging economy such as
Indonesia. (12)

Indicative content
1(d) Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• Specialisation means economies concentrate their resources in the

areas that they do best, excess output is then traded
• Indonesia specialises in producing primary products and raw materials
such as palm oil and nickel and is the world’s largest producer of these
products
• By specialising Indonesia builds up expertise, experience and skilled
labour in these products leading to a competitive advantage
• Specialisation leads to increased productivity and output, economies
of scale may be gained as more resources are devoted to the
specialisation rather than spread out over many areas
• Many people are employed in producing these products and earn
income
• Exports of $291.98bn are rising and lead to economic growth, which
benefits the whole economy
• Nickle exports have increased from $1.1bn five years ago to nearly
$20.9bn in 2022, which is a significant increase
• However, specialisation can lead to over reliance, if anything happens
to this area the Indonesian economy could suffer
• If technology changes and nickel is no longer needed for EVs then
exports will fall
• Risk and uncertainty are not spread. Should demand fall for palm oil
because of, for example, public concern over its environmental impact,
demand will fall and have a serious impact on the Indonesian economy
• Unemployment would rise with repercussions for other Indonesian
businesses and the economy
Level Mark Descriptor
0 A completely inaccurate response.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–4 Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3 5–8 Accurate knowledge and understanding, supported by relevant and
effective use of the business behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
Level 4 9 –12 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information and shows an awareness of
competing arguments/factors, leading to a supported judgement.
Question Assess the importance of infrastructure when choosing a production location in
another country. (12)

Indicative content
1(e) QS9 Interpret, apply and analyse information in written, graphical and numerical
forms.

Indicative content guidance

Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• Infrastructure refers to the systems and services that an economy needs
to function effectively, these include transport links and communications
• Choosing a production location with good infrastructure makes it easier
to run an effective business, this reduces start-up costs and saves
valuable time
• Indonesia has recently been investing heavily in its infrastructure
• Recent developments include new airports, ports, roads and rail links.
The 38 new dams will increase Indonesia’s ability to generate power
• Manufacturing businesses such as Hyundai, CATL and possibly Tesla will
all want good infrastructure to be able to export their products
efficiently and easily
• However, other factors may be more important such as the cost and
availability of labour, Indonesia has a young population, reforms are in
place to make it easier for employers
• Mining companies will be more concerned with Indonesia’s abundant
mineral reserves
• Other factors include being in a trade bloc, government incentives, ease
of doing business and political stability
• Some businesses may be put off by Indonesia’s relatively low corruption
index compared to other locations such as Vietnam
• Much depends on the nature of the business and its needs
Level Mark Descriptor
0 A completely inaccurate response.
Level 1 1–2 Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2 3–4 Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3 5–8 Accurate knowledge and understanding, supported by relevant and
effective use of the business behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
Level 4 9 –12 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information and shows an awareness of
competing arguments/factors, leading to a supported judgement.
Question Evaluate whether organic or inorganic growth is the best way for a global
business to expand. (20)

Indicative content
2 QS9 Interpret, apply and analyse information in written, graphical and numerical
forms.

Indicative content guidance

Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• Mars is following a policy of inorganic growth

• By taking over another company the business immediately grows in
size, there is no need to wait for sales to increase, it is faster than
organic growth
• Mars has just taken over Hotel Chocolat the UK’s biggest independent
chocolate maker. It gets immediate use of Hotel Chocolat’s supply chain
and distribution network
• Inorganic growth increases market share and market power which can
be crucial in a global market such as confectionery with powerful rivals
such as Ferrero and Mondelez
• Increasing market power gives greater control over prices and market
trends
• Increasing in size can bring benefits from economies of scale which
can reduce average costs
• It instantly removes competition from the market which may reduce
the need for costly promotion and competitive strategies
• However, many mergers and takeovers fail to deliver the anticipated
benefits because of culture clashes or communication problems.
Extract D points out that neither Mondelez and Ferrero have been
totally successful in their takeovers
• Inorganic growth can lead to too rapid growth and difficulties may
arise as resources become stretched and diseconomies of scale occur
• Inorganic growth can be expensive and takeovers in the confectionery
market have not been totally successful according to Extract D
• Mountain Warehouse is following the organic method of growth, it is
opening more shops in the UK and overseas
• It is privately owned and is expanding by using retained profit
(its pre-tax profits of £6.7m in 2023) or borrowed funds and therefore
keeps control of the business
• Organic growth is usually seen as less risky as the organisation is the
same with well-established systems and procedures that avoid the
problems of inorganic growth
• Diseconomies of scale are likely to be avoided as organic growth is
more measured
• However, the slower pace of growth may be too slow in a fast moving
and dynamic market, there is a risk of being left behind by rivals who
expand by merger and acquisition
• Economies of scale take longer to achieve and this could mean higher
costs than rivals and lower profit margins
• There is no clear answer as to which is best, it depends on the nature
of the busines and the market it operates in. It may be that inorganic
growth is better in a rapidly growing market and organic growth better
in a more mature market
• Both Mars and Mountain Warehouse seem to have chosen the method
of growth that works best for them
Level Mark Descriptor
0 No rewardable material.
Level 1 1–4 Isolated elements of knowledge and understanding.
Weak or no relevant application of business examples.
An argument may be attempted, but will be generic and fail to connect
causes and/or consequences.
Level 2 5–8 Elements of knowledge and understanding, which are applied to the
business example.
Arguments and chains of reasoning are presented but connections
between causes and/or consequences are incomplete. Attempts to
address the question.
A comparison or judgement may be attempted but it will not
successfully show an awareness of the key features of business
behaviour or business situation.
Level 3 9–14 Accurate knowledge and understanding, supported by relevant and
effective use of the business behaviour/context.
Uses developed chains of reasoning, so that causes and/or
consequences are complete, showing an understanding of the
question.
Arguments are well developed.
Quantitative and/or qualitative information is introduced in an attempt
to support judgements, a partial awareness of the validity and/or
significance of competing arguments and may lead to a conclusion.
Level 4 15–20 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Uses well-developed and logical, coherent chains of reasoning,
showing a range of causes and/or effect(s).
Arguments are fully developed.
Quantitative and/or qualitative information is/are used well to support
judgements. A full awareness of the validity and significance of
competing arguments/factors, leading to balanced comparisons,
judgements and an effective conclusion that proposes a solution
and/or recommendations.
Question Evaluate the usefulness of Ansoff’s matrix to a global business when making
marketing decisions. (20)

Indicative content
3 QS9 Interpret, apply and analyse information in written, graphical and
numerical forms.

Indicative content guidance

Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.

Knowledge, Application, Analysis, Evaluation – indicative content

• Ansoff’s matrix is designed to highlight the elements of a business

strategy that will lead to growth and the development of a successful
business portfolio
• It divides a business on the basis of the products it has, or could have
and the markets it has, or could have
• It indicates the relative risk of the options and can guide decision
making. The risk becomes greater if a business moves away from its
existing products and/or customers
• The simple 2x2 grid makes it easy to understand for both strategic
planners and non-experts improving communication within
organisations
• Possible use of a diagram
• By concentrating on its existing products in an existing market a
business is following a market penetration strategy. Morrisons is trying
to do this by offering a loyalty scheme
• This is the least risky option because it relies on existing customers
and may attract new ones but is unlikely to lead to high growth
• Product development is slightly riskier and involves selling new or
modified products in existing markets. Coca-Cola is doing this in places
such as the US where sales of its existing products are in decline
• Market development is what Mars is doing in Extract H by promoting
its ice creams in China. The risk here is greater because customers
may have different tastes and preferences to the existing market
• Diversification is the riskiest strategy of all, with new products and new
markets. It is risky because the business has no experience or
expertise of the new product or market, for example, Bentley has
moved away from its traditional car market into fashion accessories
• However, Ansoff is only a theoretical and simplistic tool that takes no
account of changing economic and market conditions
• Accurate predictions are difficult and easily disrupted by events
• It does not take into account the actions of competitors who will react
to a business’ new plans
 • While Ansoff's matrix may be a starting point on which to base a
strategy, it cannot be used alone to justify the decision that is made. It
should be used with other tools such as PESTLE
• Much more research is needed into market conditions and consumer
preferences

Level Mark Descriptor

0 No rewardable material.
Level 1 1–4 Isolated elements of knowledge and understanding.
Weak or no relevant application of business examples.
An argument may be attempted, but will be generic and fail to connect
causes and/or consequences.
Level 2 5–8 Elements of knowledge and understanding, which are applied to the
business example.
Arguments and chains of reasoning are presented but connections
between causes and/or consequences are incomplete. Attempts to
address the question.
A comparison or judgement may be attempted but it will not
successfully show an awareness of the key features of business
behaviour or business situation.
Level 3 9–14 Accurate knowledge and understanding, supported by relevant and
effective use of the business behaviour/context.
Uses developed chains of reasoning, so that causes and/or
consequences are complete, showing an understanding of the
question.
Arguments are well developed.
Quantitative and/or qualitative information is introduced in an attempt
to support judgements, a partial awareness of the validity and/or
significance of competing arguments and may lead to a conclusion.
Level 4 15–20 Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Uses well-developed and logical, coherent chains of reasoning,
showing a range of causes and/or effect(s).
Arguments are fully developed.
Quantitative and/or qualitative information is/are used well to support
judgements. A full awareness of the validity and significance of
competing arguments/factors, leading to balanced comparisons,
judgements and an effective conclusion that proposes a solution
and/or recommendations.
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