Higher Tier Friday 10 November 2006 Morning Time: 2 hours
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1 Centre No. Paper Reference Surname Initial(s) Candidate No H Signature Paper Reference(s) 4340/2H London Examinations IGCSE Commerce Paper 2H Higher Tier Friday 10 November 2006 Morning Time: 2 hours Examiner s use only Team Leader s use only Question Number Blank Materials required for examination Nil Items included with question papers Nil Instructions to Candidates In the boxes above, write your centre number, candidate number, your surname, initials and signature. Check that you have the correct question paper. Answer ALL the questions. Write your answers in the spaces provided in this question paper. Information for Candidates The marks for individual questions and the parts of questions are shown in round brackets: e.g. (2). There are 4 questions in this question paper. The total mark for this paper is 100. There are 12 pages in this question paper. Any pages are indicated. You may use a calculator. Advice to Candidates You will be assessed on your ability to organise and present information, ideas, descriptions and arguments clearly and logically, including your use of grammar, punctuation and spelling. You are advised to spend an equal amount of time, about 30 minutes, on each question. This publication may be reproduced only in accordance with Edexcel Limited copyright policy Edexcel Limited. Printer s Log. No. M24662A W850/4340/ /4/5/ *M24662A0116* Total Turn over Com149509_M24662A_Higher_IGCSE_C1 1 10/07/ :04:20
2 Answer ALL questions 1. The document below is part of a press advertisement. Study it and then answer the questions. WONDER WATCHES Order Now! Both types of watches are guaranteed! Use the coupon below or telephone and quote your credit card number. Please allow up to 28 days for delivery. To: Stewart House Enterprises Ltd, 32 Russell Tower Road, NEWTOWN WV5 5HH Please send me:... Ladies Watch(es) at each... Men s Watch(es) at each I enclose a cheque/postal order for... or please debit my credit card account. Signature... Mr/Mrs/Miss/Ms... Address Postcode... Date... *M24662A0216* Com149509_M24662A_Higher_IGCSE_C2 2 10/07/ :19:29
3 (a) (i) Which is the quickest method of ordering a watch?... (1) (ii) What three methods of payment are accepted by Stewart House Enterprises Ltd? (3) (b) (i) Why would cash not be a convenient method of payment? (2) (ii) State three benefits of being a credit card holder. (3) *M24662A016* Turn over Com149509_M24662A_Higher_IGCSE_C3 3 18/11/ :33:31
4 (c) Hemesh Patel wishes to pay for a watch by cheque to Stewart House Enterprises. He has a bank current account at the EZ Credit Bank. (i) In the above transaction what would be the name of the drawer?... (1) the payee?... (1) the drawee?... (1) (ii) How can Hemesh make this cheque as safe as possible? (4) (d) (i) Suggest how payment for watches could be made more convenient for customers with Internet access. (3) *M24662A0416* Com149509_M24662A_Higher_IGCSE_C4 4 18/11/ :33:31
5 (ii) Explain two ways in which the advertisement could be improved. (6) Q1 (Total 25 marks) *M24662A016* Turn over Com149509_M24662A_Higher_IGCSE_C5 5 18/11/ :33:31
6 2. Study the information below relating to UK foreign trade and then answer the questions which follow. Goods m Total goods (visibles) exported Total goods imported Balance of Trade? Services Total services (invisibles) exported? Total services imported 720 Balance on services (favourable) 480 (a) (i) Calculate the Balance of Trade figure. (1) (ii) Analyse your answer to (a) (i). (3) (iii) Calculate the figure for total services exported by the UK. (1) 6 *M24662A0616* Com149509_M24662A_Higher_IGCSE_C6 6 24/10/ :30:09
7 (iv) Discuss the significance of the Balance of Payments situation. (6) (b) (i) What are customs duties? (2) (ii) Give two reasons for customs duties. (2) (iii) Compare customs duties with import quotas. (4) *M24662A016* 7 Turn over Com149509_M24662A_Higher_IGCSE_C7 7 24/10/ :30:09
8 (c) The directors of a company which manufactures toys plan to expand sales by exporting. Discuss the problems that the company might face (6) Q2 (Total 25 marks) 8 *M24662A016* Com149509_M24662A_Higher_IGCSE_C8 8 24/10/ :30:09
9 3. (a) (i) Define the meaning of production. (3) (ii) Give an example in the computer industry of each of the factors of production. FACTORS OF PRODUCTION Land Labour Capital APPLICATION TO COMPUTER industry Factory Building (2) (b) Money is important to a manufacturer of computers. Examine two ways in which money might be used in the business (6) *M24662A016* Turn over Com149509_M24662A_Higher_IGCSE_C9 9 21/11/ :00:53
10 (c) Maria Puente has just been employed as the manager of a small and old-established family business that assembles computers. Each computer is assembled complete by one employee. Maria discovers that factory output cannot meet the quantity of orders from distributors. She asks your advice on whether to introduce specialisation into the factory. (i) What is meant by specialisation (division of labour) in production? (2) (ii) Analyse the effects of introducing specialisation to the business and make a recommendation to Maria Puente. (12) Q3 (Total 25 marks) 10 *M24662A01016* Com149509_M24662A_Higher_IGCSE_C /10/ :30:10
11 4. Study the advertisement below and then answer the questions which follow. UNIVERSAL DEPARTMENT STORE Washing machine on special offer Cash: 312 or Hire Purchase terms: 105 deposit and 2.70 per week for 2 years Jane Simpson, who works as a shop assistant, has moved into a new flat and wants to buy a washing machine. (a) (i) Describe how the Consumer Protection Acts protect Jane if she buys a washing machine. (6) *M24662A01116* 11 Turn over Com149509_M24662A_Higher_IGCSE_C /11/ :34:27
12 (ii) Assess whether buying by Hire Purchase is better than buying by cash. (8) (b) Analyse why retailers like Universal Department Store offer a choice of payment methods to consumers (4) 12 *M24662A01216* Com149509_M24662A_Higher_IGCSE_C /07/ :04:55
13 (c) Discuss the implications for the business of home shopping by their customers (7) Q4 (Total 25 marks) END TOTAL FOR PAPER: 100 MARKS *M24662A01316* 13 Com149509_M24662A_Higher_IGCSE_C /11/ :46:18
14 BLANK PAGE 14 *M24662A01416* Com149509_M24662A_Higher_IGCSE_C /10/ :30:10
15 BLANK PAGE *M24662A01516* 15 Com149509_M24662A_Higher_IGCSE_C /10/ :30:10
16 BLANK PAGE 16 *M24662A01616* Com149509_M24662A_Higher_IGCSE_C /10/ :30:10
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