BPP Coursework Cover Sheet

Please use the table below as your cover sheet for the 1st page of the submission. The sheet should
be before the cover/title page of your submission.

Programme

Module name

Schedule Term

Student Reference Number (SRN)

Report/Assignment Title

Date of Submission
(Please attach the confirmation of any
extension received)

Declaration of Original Work:

I hereby declare that I have read and understood BPP’s regulations on plagiarism and that this is my
original work, researched, undertaken, completed and submitted in accordance with the requirements
of BPP School of Business and Technology.

The word count, excluding contents table, bibliography and appendices, is ___ words.

Student Reference Number: Date:

By submitting this coursework you agree to all rules and regulations of BPP regarding assessments
and awards for programmes. Please note, submission is your declaration you are fit to sit.

BPP University reserves the right to use all submitted work for educational purposes and may
request that work be published for a wider audience.

BPP School of Business and Technology

Economics (S) _ CW3

 BSc Accounting & Finance

Economics

Coursework Assessment Brief

Term 4

Submission deadline: 31st August 2023

Submission mode: Turnitin online access

Economics (S) _ CW3

1. General Assessment Guidance

• Your summative assessment for this module is made up of this 3,500 submission which
accounts for 100% of the marks
• The deadline for submission is 31st August 2023. Please note late submissions will not be
marked.
• You are required to submit all elements of your assessment via Turnitin online access. Only
submissions made via the specified mode will be accepted and hard copies or any other digital
form of submissions (like via email or pen drive etc.) will not be accepted.
• For coursework, the submission word limit is 3,500 words. You must comply with the word count
guidelines. You may submit LESS than 3,500 words but not more. Word Count guidelines can be
found on your programme home page and the coursework submission page.
• Do not put your name or contact details anywhere on your submission. You should only put
your student registration number (SRN) which will ensure your submission is recognised in the
marking process.
• A total of 100 marks are available for this module assessment, and you are required to achieve
minimum 40% to pass this module.
• You are required to use only Harvard Referencing System in your submission. Any content which
is already published by other author(s) and is not referenced will be considered as a case of
plagiarism.
You can find further information on Harvard Referencing in the online library on the VLE. You can
use the following link to access this information: http://bpp.libguides.com/Home/StudySupport
• BPP University has a strict policy regarding authenticity of assessments. In proven instances of
plagiarism or collusion, severe punishment will be imposed on offenders. You are advised to
read the rules and regulations regarding plagiarism and collusion in the GARs and MOPP which
are available on VLE in the Academic registry section.
• You should include a completed copy of the Assignment Cover sheet. Any submission without
this completed Assignment Cover sheet may be considered invalid and not marked.

Economics (S) _ CW3

2. Assessment Brief

Malaga Fruit&Veg is a privately owned producer of vegetable and fruit in Spain. The company has
been exporting a range of products to the UK for the past decade. The company has different
contracts with major UK supermarket such as Tesco and Waitrose.

The company is 50 years old and has been exporting to the UK since 2002. Malaga Fruit&Veg has
relied heavily on the UK supermarkets which makes up 90% of their total revenue. In the recent
decade, there has been different events which influenced their export to the UK.

Despite denying massive impact by UK and Spain government (Jopson, 2023), one of the issues the
company faces is the extra administrative procedures, since Brexit, which impose additional
expenses to Malaga Fruit&Veg. This has impacted the company profit and the management
considers other countries to replace the UK market.

The decision is not only based on the extra expenses. Since 2021, the Brexit trading regime came
into effect, trading data shows the volume of vegetable shipments has decreased since the start of
2021. Both value and volume changes are illustrated in the following graph.

While the management of Malaga Fruit&Veg were exploring new markets in Europe and Middles-
East, during February-March 2023, prices for fruit and vegetables in the UK increased. This was due
to adverse weather and disrupted harvests in north Africa. The reduction in supply of vegetables
such as tomatoes, cucumbers, and peppers affected prices. The price increases motivated suppliers
to think again about the UK market (Davey, 2023).

Economics (S) _ CW3

According to Davey (2023), the CEO of the British Growers Association warns of more shortages
ahead, will encourage Britain’s vegetable producers. Due to the increased prices, many UK retailors
are buying less knowing their customers cannot afford to spend due to cost of living crisis.

Whilst Malaga Fruit&Veg has so far been a success in the UK market; you have been asked to advise
the board of directors ona number of economic matters, answering various questions.

References:

Davey, J. (2023) “More food shortages could add to Britain’s price pressure,” Reuters, 28 March.
Available at: https://www.reuters.com/world/uk/more-food-shortages-could-add-britains-price-
pressure-2023-03-
28/#:~:text=British%20shoppers%20have%20faced%20a,key%20markets%20such%20as%20Spain.

Jopson, B. (2023) “UK salad shortages not down to Brexit, says Spain,” Financial Times, 1 March.
Available at: https://www.ft.com/content/1d246234-57ff-40af-b7c4-cfe57622890e.

You are required to write a 3,500-word report to the Board of Director of Malaga Fruit&Veg discuss
the economic factors impacting their business..

You should base your analysis on the information given in the case study and your research of the
current economic climate.

Your report should be addressed to the board of directors of Malaga Fruit&Veg and should include
references to relevant economics concepts, literature, and application.

Your report must be referenced using Harvard referencing.

The learning outcomes (LO) that you have to meet in order to pass the assessment are:

1- Assess the impact of microeconomic issues on individuals and organisations. 

2- Analyse the impact of macroeconomic issues on individuals, organisations and governments.
3- Explain the global impact of economic issues such as labour issues, emerging markets,
inequality and inflation on economies and businesses. 
4- Assess the impact of technology on various strands of economics including lending,
borrowing and investment. 

You need to address the following tasks:

I. Executive Summary (5 Marks) and Presentation and Academic Practice (5 Marks)

(Suggested word count:200)
Produce a clearly structured management report with an Executive Summary. Having
completed your report provide a summary of the main points for the Board of Director
of Malaga Fruit&Veg.

Economics (S) _ CW3

 The language used should be appropriate for a business audience and should answer the
specific question highlighted in the tasks.
Evidence of a broad range of reading/independent research referenced using the
Harvard Referencing System is required.
For a higher mark, clear academic practice, and excellent presentation is required.

II. The Business Environment (10 Marks, LO1 and LO2) (Suggested word count: 300)
In the report, analyse the UK retailer industry (Tesco, Sainsbury’s, and others) using
appropriate theories and explain the importance of business environment in making
decision.

III. Supply & Demand (12 Marks, LO1 and LO2) (Suggested word count: 300)
Explain the law of demand. In application to Malaga Fruit&Veg, using a supply and
demand diagram explain what would happen from a demand perspective if the UK
retailors purchase less fruit and vegetable. Analyse the impact on Malaga Fruit&Veg.

Explain the law of supply. In application to Malaga Fruit&Veg, using a supply and
demand diagram explain what would happen from a supply perspective if bad weather
impacts the supply of fruit and vegetable to the UK. Analyse the impact on Malaga
Fruit&Veg.

IV. Price Elasticity & Competition (12 Marks, LO1 and LO2) (Suggested word count: 450)
Prices of fruit and vegetable increased massively in the past couple of years.
These changes were due to different reasons. Explain the concept of an elastic
price elasticity of demand and apply it to the food industry.

Also, Malaga Fruit&Veg operates in a highly competitive market. Name and

describe the market structure in which they operate in. Suggest to the Board of
Director, methods to cover the increased costs , other than a price increase. Also
explain how Malaga Fruit&Veg remains competitive in a very competitive
market.

V. Macroeconomic Issues (12 Marks, LO2 and ILO3) (Suggested word count: 450)
During the past few years, businesses, households, and governments have experienced
pandemic, Brexit, and most recently increasing inflation.
Review the UK economy over the last two years and outline the main economic issues.
Explain how these issues may affect retail industry, and Malaga Fruit&Veg now and in
the next two years.
UK retail companies import and export from/to Europe and USA. Explain how changes in
exchange rates between the UK, Europe, and USA impact those companies, and the UK
Government.

VI. Policy (22 Marks, LO3) (Suggested word count: 800)

Economics (S) _ CW3

 From your review of the UK economy in the last few years (Q. V above); what policy
changes might the UK government implement to support growth and explain what the
impact of these policy changes will be on the retail (supermarket) sector, their
customers, suppliers, and the UK Government.

VII. Global Economy (12 Marks, LO3) (Suggested word count: 450)
There are several different issues that international companiesmay face: such as
invasion of Ukraine, increasing energy and food prices, political turmoil, and Brexit.
Malaga Fruit&Veg as an international player in the food market must also think about
competing with its rivals.
With regard to Malaga Fruit&Veg and its customers, discuss expanding its operation in
Europe and in the Middle East in your report to the Board of Director of Malaga
Fruit&Veg.

VIII. Technology (10 Marks, LO4) (Suggested word count: 400)

Fintech has played a crucial role in the past decade. It has facilitated borrowing
and investment not only for individuals but also corporations.
Explain different ways that the Board of Director can use fintech in both
borrowing and investment.

Carefully read the full requirements for each task within the enclosed student marking
guide in Section 3.

Weighting: 100% of overall module grade

Your report structure should include the following section:

• Cover page (University cover sheet)

• Table of Contents
• List of Abbreviations (if appropriate)
• Executive Summary
• The Business Environment
• Supply & Demand
• Price Elasticity & Competition
• Macroeconomic Issues
• Policy
• Global Economy
• Technology
• References (Harvard Referencing System)
• Appendix (if appropriate)

Word count applies to the main body (shown in bold) please see Assessment Rules for full details.

Economics (S) _ CW3

3. Student Marking Guide

Assignment Distinction (70% Merit (60% to Pass (50% to

Pass (40%-49% ) Fail (0% to 39%)
Task - 100%) 69%) 59%)

Guidelines:

The Business
Environment
(10 Marks, LO1 • Clear explanation of what is meant by the business environment and the types of
and LO2) decisions made by businesses

• Identify and clearly describe the economy in which Malaga Fruit&Veg operates and
the impact on the business

Economics (S) _ CW3

 Very good Good knowledge Satisfactory
Excellent
knowledge and and knowledge and Poor knowledge
knowledge and
understanding of understanding of understanding of and
understanding of
the business the business the business understanding of
the business
environment and environment and environment and the business
environment and
its impact on its impact on its impact on environment and
its impact on
decision making. decision making. decision making. its impact on
decision making.
Very good Some clear Adequate decision making.
Clear evidence of
evidence of evidence of evidence of Limited evidence
understanding
understanding understanding understanding of understanding
business
business business business business
economics and
economics and economics and economics and economics and
the main
the main the main the main the main
economic
economic economic economic economic
problem in the
problem in the problem in the problem in the problem in the
retail industry
retail industry. retail industry. retail industry. retail industry.
(supermarket).
Very good Some clear Adequate Limited evidence
Clear evidence of
evidence of evidence of evidence of of research of the
research of the
research of the research of the research of the economy in
economy in
economy in economy in economy in which Malaga
which Malaga
which Malaga which Malaga which Malaga Fruit&Veg
Fruit&Veg
Fruit&Veg Fruit&Veg Fruit&Veg operates.
operates.
operates. operates. operates.
Supply &
Guidelines:
Demand
(12 Marks, LO1
• Clearly explain the laws of supply and demand
and LO2)
• For each scenario clearly explain the impact of the change using a fully labelled
demand and supply curve.

Economics (S) _ CW3

 • For each scenario in the brief, explain the impact of the scenario on retail industry
(supermarket) and their customers per the question.

Satisfactory Poor knowledge

Very good
Excellent Good knowledge knowledge and and
knowledge and
knowledge and and understanding of understanding of
understanding of
understanding of understanding of the laws of the laws of
the laws of
the laws of the laws of demand and demand and
demand and
demand and demand and supply. supply. Limited
supply. Very
supply. Excellent supply. Good Satisfactory understanding of
good
understanding of understanding of understanding of the impact of
understanding of
the impact of the impact of the impact of both issues. Poor
the impact of
both issues. both issues. both issues. and unclear
both issues. Very
Excellent and Good and precise Adequate, basic diagrams, not
good and precise
precise diagrams, diagrams, mostly diagrams, labelled /
diagrams, fully
fully labelled. labelled. partially incorrectly
labelled.
labelled . labelled.

Guidelines:

Price Elasticity
• Clearly explain price elasticity, elastic and inelastic price elasticity
& Competition
(12 Marks, LO1
and LO2) • Clearly explain what makes food price prone to price elasticity

• Name and describe the market structure in which Malaga Fruit&Veg operates in

• Clearly explain how the business can remain competitive in the market in which they
operate in

Economics (S) _ CW3

 Very good Satisfactory
Excellent Good knowledge Poor knowledge
knowledge and knowledge and
knowledge and and and
understanding of understanding of
understanding of understanding of understanding of
price elasticity, price elasticity,
price elasticity, price elasticity, price elasticity,
elastic and elastic and
elastic and elastic and elastic and
inelastic price inelastic price
inelastic price inelastic price inelastic price
elasticity in food elasticity in food
elasticity in food elasticity in food elasticity in food
sector (retail sector (retail
sector (retail sector (retail sector (retail
industry market). industry market).
industry market). industry market). industry market).
Very good Satisfactory
Clear evidence of Good evidence of Limited evidence
evidence of evidence of
understanding understanding of understanding
understanding understanding
the market in the market in the market in
the market in the market in
which Malaga which Malaga which Malaga
which Malaga which Malaga
Fruit&Veg Fruit&Veg Fruit&Veg
Fruit&Veg Fruit&Veg
operates and operates and operates and
operates and operates and
how the business how the business how the business
how the business how the business
can remain can remain can remain
can remain can remain
competitive. competitive. competitive.
competitive. competitive.

Economics (S) _ CW3

 Macroeconomic
Guidelines:
Issues
(12 Marks, LO2 • Identify and clearly explain two main economic issues in the UK and evaluate how
and LO3) they might affect the business
• Clearly explain the impact of exchange rates on the business, customers and the UK
Government
Very good Satisfactory
Excellent Good evidence of
evidence of evidence of Poor evidence of
evidence of research into the
research into the research into the research into the
research into the UK economy
UK economy UK economy UK economy
UK economy showing a very
showing a very showing a showing a limited
showing a deep good
good satisfactory understanding of
understanding of understanding of
understanding of understanding of the main
the main the main
the main the main economic issues
economic issues economic issues
economic issues economic issues and the effect on
and the effect on and the effect on
and the effect on and the effect on the business.
the business. the business.
the business. the business.

Excellent Very good Good Satisfactory Limited

understanding understanding understanding understanding understanding
and knowledge of and knowledge of and knowledge of and knowledge of and knowledge of
the impact of the impact of the impact of the impact of the impact of
exchange rate exchange rate exchange rate exchange rate exchange rate
changes on the changes on the changes on the changes on the changes on the
business, business, business, business, business,
customers and customers and customers and customers and customers and
government. government. government. government. government.

Policy Guidelines:

Economics (S) _ CW3

 (22 Marks, LO3) • Explain the role of demand and supply side policy

• From review and based on the two issues identified in Q. V above, explain which
policy changes the Government might make to support growth

• Clearly explain the impact of these policy changes on the retail (supermarket)
business, their customers and the UK Government

Economics (S) _ CW3

 Satisfactory
Excellent Very good Limited
Good knowledge knowledge and
knowledge and knowledge and knowledge and
and understanding of
understanding of understanding of understanding of
understanding of demand and
demand and demand and demand and
demand and supply side
supply side supply side supply side
supply side policy.
policy. Excellent policy. Very good policy. Poor
policy. Good Satisfactory
evidence of evidence of evidence of
evidence of evidence of
research into the research into the research into the
research into the research into the
UK economy UK economy UK economy
UK economy UK economy
showing an showing a very showing an
showing a good showing an
excellent good limited
understanding of adequate
understanding of understanding of understanding of
the policy understanding of
the policy the policy the policy
changes that the policy
changes that changes that changes that
address the main changes that
address the main address the main address the main
economic issues address the main
economic issues economic issues economic issues
and the effect on economic issues
and the effect on and the effect on and the effect on
the retail and the effect on
the retail the retail the retail
(supermarket) the retail
(supermarket) (supermarket) (supermarket)
business, (supermarket)
business, business, business,
customers and business,
customers and customers and customers and
government. customers and
government. government. government.
government.

Economics (S) _ CW3

 Global
Guidelines:
Economy
(12 Marks, LO3) • Identification and clear explanation of issues with expanding to Europe

• Identification and critical evaluation of advantages / disadvantages of expanding to

the Middle east (four in total)

• Recommend if they should expand based on evaluation

Economics (S) _ CW3

 Excellent Very good Satisfactory Poor knowledge
Good knowledge
knowledge and knowledge and knowledge and and
and
understanding of understanding of understanding of understanding of
understanding of
the issues faced the issues faced the issues faced the issues faced
the issues faced
by Malaga by Malaga by Malaga by Malaga
by Malaga
Fruit&Veg Fruit&Veg Fruit&Veg Fruit&Veg
Fruit&Veg
expanding to expanding to expanding to expanding to
expanding to
Europe. Europe. Europe. Europe.
Europe.
Excellent Very good Satisfactory Poor knowledge
Good knowledge
knowledge and knowledge and knowledge and and
and
understanding of understanding of understanding of understanding of
understanding of
advantages and advantages and advantages and advantages and
advantages and
disadvantages of disadvantages of disadvantages of disadvantages
disadvantages of
expanding to expanding to expanding to expanding to
expanding to
Middle east. Middle East. Middle East. outlet in Middle
Middle East.
Excellent Very good Adequate East.
Good evidence to
evidence to back evidence to back evidence to back Limited evidence
back up
up up up to back up
recommendation.
recommendation. recommendation. recommendation. recommendation.

Economics (S) _ CW3

 Technology Guidelines
(10 Marks, LO4) • Clear explanation of fintech
• Clear explanation of the advantages of fintech for borrowing money

• Identify and clearly describe two ways fintech can be used to manage money and two
ways fintech can be used to invest surplus cash from the business

Excellent Very good Good knowledge Adequate Limited

knowledge and knowledge and and knowledge and knowledge and
understanding of understanding of understanding of understanding of understanding of
fintech and the fintech and the fintech and the fintech and the fintech and the
importance to importance to importance to importance to importance to
the business for the business for the business for the business for the business for
borrowing, borrowing, borrowing, borrowing, borrowing,
managing and managing and managing and managing and managing and
investing money. investing money. investing money. investing money. investing money.

Executive Guidelines:
Summary (5
Marks), and • Clear summary of the main sections

Economics (S) _ CW3

 Presentation • Clear structure and layout
and Academic • Writing style: professional and concise
Practice (5
Marks) • Appropriate Harvard referencing: range and credibility of the sources use and correct
application of Harvard referencing

• style throughout report and appendices

Excellent with
precise, full and Very good with Good with Satisfactory with Weak with some
appropriate precise, full and precise, full and full and appropriate
references.
An exemplar of appropriate appropriate appropriate
references.
structured references. references. references.
A very good
layout and A good example Structured layout Limited structure
example of
professional and of structured and mainly and
structured
accurate layout and layout and accurate
expression.
expression. professional and professional and expression.
accurate accurate
expression. expression.

Economics (S) _ CW3

4. Marker Marking Guide

Merit
Assignment Distinction Pass (50%-
(60% to Pass (40%-49%) Fail (0% to 39%)
Task (70% - 100%) 59%)
69%)

The Business
Environment
Model answer:
(10 Marks, LO1
and LO2)

• Business environment: external influences (economy, competition,

suppliers), structure of industry, internal factors (organisations objectives, resources)
• Business economics and decisions: Scarcity is the excess of human wants
over what can actually be produced. Because of scarcity, various choices have to be
made between alternatives. Decisions are influenced by the external environment
(business environment), internal factors and the external effects of decisions. Examples
of decisions business would make.
• Malaga Fruit&Veg operates in mixed economy: An economy where
economic decisions are made partly through the market and partly by the government

Economics (S) _ CW3

 In the report,
analyse the
retail
(supermarket)
industry using
appropriate Very good
Excellent
theories and knowledge and Good knowledge and Satisfactory
knowledge and Poor knowledge and
explain the understanding of understanding of the knowledge and
understanding of understanding of the
importance of the business understanding of the
the business business environment business
business environment and business
environment and and its impact on environment and its
environment in its impact on environment and its
its impact on decision making. impact on decision
making decision making. Some clear evidence impact on decision
decision making. making. Limited
decision. Very good evidence of understanding making. Adequate
Clear evidence of evidence of
of understanding business economics evidence of
understanding understanding
business and the main understanding
business economics business economics
economics and the economic problem in business economics
and the main and the main
main economic the retail and the main
economic problem economic problem in
problem in the (supermarket) economic problem in
in the retail the retail
retail industry. Some clear the retail
(supermarket) (supermarket)
(supermarket) evidence of research (supermarket)
industry. Clear industry. Limited
industry. of the economy in industry. Adequate
evidence of evidence of research
Very good evidence which Malaga evidence of research
research of the of the economy in
of research of the Fruit&Veg operates. of the economy in
economy in which which Malaga
economy in which which Malaga
Malaga Fruit&Veg (5 marks) Fruit&Veg operates.
Malaga Fruit&Veg Fruit&Veg operates.
operates. (0-3 marks)
operates. (4 marks)
(7-10 marks)
(6 marks)

Economics (S) _ CW3

 Supply &
Model Answer:
Demand
(12 Marks, LO1 • Demand: The quantity of a good demanded per period of time will fall as
and LO2) the price rises and rise as the price falls, other things being equal (ceteris paribus).
Explain the law
of demand. In
application to
Malaga
Fruit&Veg,
using a supply
and demand
diagram explain
what would
happen from a
demand
perspective if
the UK retailors
• Supply: Other factors being equal (ceteris paribus), as the price of a good or
purchase less
service increases, the quantity of goods or services that suppliers offer will increase, and
fruit and
vice versa. As the price of an item goes up, suppliers will attempt to maximise profits by
vegetable.
increasing the quantity offered for sale.
Analyse the
impact on
Malaga
Fruit&Veg.
Explain the law
of supply. In
application to
Malaga
Fruit&Veg,
using a supply
and demand
diagram explain
what would

Economics (S) _ CW3

 happen from a
supply
perspective if
UK companies
going to
produce fruit
and vegetable.
· Vegetable and Fruit Demand decreases due to cost of leaving crisis &
supply does not change due to late response of supplier to produce less (shift right)
(diagram at end) retailers (supermarkets) may be able to decrease their prices and earn
less profits due to decrease in demand for fruit and veg.
· If the supply of fruit and veg reduced due to bad weather or import
obstacles: Supply decreases & demand does not change (inward shift) (diagram at end)
producers and retailers may need to increase their prices to maintain profits for business.

Economics (S) _ CW3

 Good
knowledge Satisfactory
and knowledge
Very good understan and
knowledge and Poor knowledge
Excellent ding of the understand
understanding and understanding
knowledge and laws of ing of the
of the laws of of the laws of
understanding of demand laws of
demand and demand and
the laws of demand and demand
supply. Very supply. Limited
and supply. supply. and supply.
good understanding of
Excellent Good Satisfactory
the impact of both
understanding of understanding understan understand
of the impact of issues. Poor
the impact of both ding of the ing of the
and unclear
issues. Excellent both issues. impact of impact of
diagrams, not
and precise Very good and both both issues.
precise labelled /
diagrams, fully issues. Adequate,
diagrams, fully incorrectly
labelled. Good and basic
labelled. labelled.
(8-12marks) precise diagrams,
(0-4 marks)
diagrams, partially
mostly labelled.
labelled. (5 marks)
(6 Marks)

(7 marks)
Price Elasticity
& Competition
Model Answer :
(12 Marks, LO1
and LO2)

Economics (S) _ CW3

 Price of fruit
and vegetable
increased
massively in the
past couple of
years. These
changes were • Price elasticity of demand is a measure of the responsiveness of quantity
due to different demanded to a change in price; If demand is (price) elastic, then any change in price will
reasons. Explain cause the quantity demanded to change proportionately more.
the concept of
an elastic price
elasticity of
demand and
apply it to the
food industry.
Also, Malaga
Fruit&Veg
operates in a
highly
competitive
market. Name
and describe
the market • Fruit and Veg producers and retail (supermarket) industry is a competitive
structure in industry and if one company increases price will lose customer. However, if the price of
which they fruit and veg (food) will not lead to a disproportionate fall in demand and therefore
operate in. food/fruit and veg is inelastic.
Suggest any
methods to the
Board of
Director rather
than price
increase to
cover the

Economics (S) _ CW3

 increased costs.
Also explain
how Malaga
Fruit&Veg
remains
competitive in a
very
competitive
market.

• The answer might focus on the retailers (supermarket) and how they set
the prices of food or fruit and veg and/or providing examples of limited number of
suppliers which produce identical product.

• Valid, thoroughly explained ways to remain competitive in the industry.

Economics (S) _ CW3

 Very good
Excellent Poor knowledge and
knowledge and Satisfactory
knowledge and Good knowledge and understanding of
understanding of knowledge and
understanding of understanding of price price elasticity,
price elasticity, understanding of
price elasticity, elasticity, elastic and elastic and inelastic
elastic and inelastic price elasticity,
elastic and inelastic inelastic price price elasticity in
price elasticity in elastic and inelastic
price elasticity in elasticity in food food sector (retail
food sector (retail price elasticity in
food sector (retail sector (retail industry industry market).
industry market). food sector (retail
industry market). market).
industry market).
Very good evidence Limited evidence of
Clear evidence of Good evidence of understanding the
of understanding Satisfactory evidence
understanding the understanding the market in which
the market in of understanding the
market in which market in which Malaga Fruit&Veg
which Malaga market in which
Malaga Fruit&Veg Malaga Fruit&Veg operates and how
Fruit&Veg operates Malaga Fruit&Veg
operates and how operates and how the the business can
and how the operates and how
the business can business can remain remain competitive.
business can the business can
remain competitive.
remain remain competitive.
competitive. (8-12 (6 marks)
competitive. (5 marks)
marks)
(7 marks)

(0-4 marks)

Economics (S) _ CW3

 Macroeconomic
Model Answer:
Issues
• Mark holistically based on current economic outlook; issues must be
(12 Marks, LO2 relevant to current situation backed up by evidence. Examples issues include decline in
and ILO3) GDP leading to high unemployment (households have lower income resulting in lower
sales); increasing inflation discourages firms to invest
During the past
few years,
businesses,
households, and
governments
have
experienced
pandemic, • The value of exchange rates affects the demand for exports and imports.
Brexit, and most For example, an appreciation of the pound (pound becomes stronger) will lead to
recently imports becoming cheaper for the business this means lower costs / higher profits,
increasing potentially cost savings passed to customers. It will however make exports less
inflation. competitive reducing economic growth.
Review the UK
economy over
the last two
years and
outline the
main economic
issues.

Economics (S) _ CW3

 Explain how
these issues
may affect retail
industry, and
Malaga
Fruit&Veg now
and in the next
Very good evidence
two years. Excellent evidence Satisfactory evidence
of research into the Good evidence of Poor evidence of
UK retail of research into the of research into the
UK economy research into the UK research into the UK
companies UK economy UK economy
showing a very economy showing a economy showing a
import and showing a deep showing a
good very good limited
export from/to understanding of satisfactory
understanding of understanding of the understanding of the
Europe and the main economic understanding of the
the main economic main economic issues main economic
USA. Explain issues and the main economic
issues and the and the effect on the issues and the effect
how changes in effect on the issues and the effect
effect on the business. on the business.
exchange rates business. on the business.
business.
between the
UK, Europe, and
USA impact
those
companies, and
the UK
Government.

Economics (S) _ CW3

 Excellent Very good
Satisfactory Limited
understanding and understanding and Good understanding
understanding and understanding and
knowledge of the knowledge of the and knowledge of the
knowledge of the knowledge of the
impact of exchange impact of exchange impact of exchange
impact of exchange impact of exchange
rate changes on rate changes on rate changes on the
rate changes on the rate changes on the
the business, the business, business, customers
business, customers business, customers
customers and customers and and government. (6
and government. (5 and government. (0-
government. government. marks)
marks) 4 marks)
(8-12marks) (7 marks)

Policy Model Answer:

• Demand-side policy: Government policy designed to alter the level of
(22 Marks, LO3)
aggregate demand, and thereby the level of output, employment and prices.
• Supply-side policy: Government policy that attempts to alter the level of
aggregate supply directly

Economics (S) _ CW3

 From your
review of the
UK economy in
the last few
years (Q. V);
what policy
changes might
the UK
government
• Mark holistically based on current economic outlook; issues must be
implement to
relevant to current situation backed up by evidence. Examples of demand side policies
support growth
include fiscal policy (cutting taxes/increasing government spending) and monetary policy
and explain
(cutting interest rates). Examples of supply side policies include privatisation,
what the impact
deregulation, tax cuts, free trade agreements (free market supply side policies) and
of these policy
Improved education and training, improved infrastructure. (interventionist supply side
changes will be
policies)
on the retail
(supermarket)
sector, and fruit
and vegetable
sector, their
customers,
suppliers, and
the UK
Government.
• Suggested policy change and impact relevant to issues

Economics (S) _ CW3

 Excellent Very good
Satisfactory
knowledge and knowledge and
knowledge and Limited knowledge
understanding of understanding of Good knowledge and
understanding of and understanding
demand and supply demand and supply understanding of
demand and supply of demand and
side policy. side policy. Very demand and supply
side policy. supply side policy.
Excellent evidence good evidence of side policy. Good
Satisfactory evidence Poor evidence of
of research into the research into the evidence of research
of research into the research into the UK
UK economy UK economy into the UK economy
UK economy economy showing an
showing a excellent showing a good showing a good
showing an limited
understanding of understanding of understanding of the
adequate understanding of the
the policy changes the policy changes policy changes that
understanding of the policy changes that
that address the that address the address the main
policy changes that address the main
main economic main economic economic issues and
address the main economic issues and
issues and the issues and the the effect on the
economic issues and the effect on the
effect on the effect on the business, customers
the effect on the business, customers
business, business, and government. (12-
business, customers and government. (0-
customers and customers and 13 marks)
and government. (9- 8 marks)
government. (16- government. (14-
11 marks)
22 marks) 15 marks)

Global
Model Answer:
Economy

Economics (S) _ CW3

 • Mark holistically, examples may include increased regulation, economic
(12 Marks, LO3)
issues, supply chain issues
• Mark holistically, advantages may include
There are
several different
issues that
international
companiens
may face such
as invasion of
Ukraine,
increasing
energy and food
price, political
turmoil, and
Brexit. Malaga
Fruit&Veg as an
o Ownership-specific assets: Assets owned by the firm, such as
international
technology, product differentiation and manage-rial skills, which reflect its core
player in the
competencies.
food market
must also think
about
competing with
its rivals.
With regard to
Malaga
Fruit&Veg and
its customers,
discuss
expanding its
operation in
Europe and in
the Middle East

Economics (S) _ CW3

 in your report
to the Board of
Director of
Malaga
Fruit&Veg.

o Locational advantages: Those features of a host economy that

MNCs believe will lower costs, improve quality and/or facilitate greater sales.

Economics (S) _ CW3

 o Internalisation advantages Where the net benefits of extending
the organisational structure of the MNC by setting up an overseas subsidiary are greater
than those of arranging a contract with an external party.

• Mark holistically, disadvantages may include

o Language barriers
o Selling & marketing in foreign markets
o Communication and co-ordination between subsidiaries.
o Attitudes of host governments.
• Recommendation consistent with critical evaluation

Economics (S) _ CW3

 Excellent Very good
Satisfactory
knowledge and knowledge and Poor knowledge and
knowledge and
understanding of understanding of Good knowledge and understanding of the
understanding of the
the issues faced by the issues faced by understanding of the issues faced by
issues faced by
Malaga Fruit&Veg Malaga Fruit&Veg issues faced by Malaga Malaga Fruit&Veg
Malaga Fruit&Veg
expanding to expanding to Fruit&Veg expanding expanding to
expanding to
Europe. Europe. to Europe. Europe.
Europe. Satisfactory
Excellent Very good Good knowledge and Poor knowledge and
knowledge and
knowledge and knowledge and understanding of understanding of
understanding of
understanding of understanding of advantages and advantages and
advantages and
advantages and advantages and disadvantages of disadvantages
disadvantages of
disadvantages of disadvantages of expanding to Middle expanding to outlet
expanding to Middle
expanding to expanding to East. Good evidence in Middle East.
East.
Middle east. Middle East. Very to back up Limited evidence to
Adequate evidence
Excellent evidence good evidence to recommendation. back up
to back up
to back up back up (6 marks) recommendation.
recommendation.
recommendation. recommendation. (4-0 marks)
(5 marks)
(8-12 marks) (7-8 marks)

Technology Model Answer:

Economics (S) _ CW3

 • Financial technology (Fintech) is used to describe new tech that seeks to
improve and automate the delivery and use of financial services. At its core, fintech is
utilized to help companies, business owners and consumers better manage their financial
operations, processes, and lives by utilizing specialized software and algorithms that are
(10 Marks, LO4) used on computers and, increasingly, smartphones. Fintech, the word, is a combination
of "financial technology". Fintech also includes the development and use of crypto-
currencies such as bitcoin. While that segment of fintech may see the most headlines,
the big money still lies in the traditional global banking industry and its multi-trillion-
dollar market capitalization.
• Fintech when borrowing money includes loans more accessible for example
peer-to-peer lending, offer perks and savings, offer fast approvals and funding

Fintech has
played a crucial
role in the past
decade. It has
facilitated
borrowing and
• Fintech to manage money includes: Payment processing: credit, debit,
investment not
mobile payments, device payments; Ecommerce: ordering on app, online shop (selling
only for
tea, coffee & homeware online); Money transfer: supplier payments, make and accept
individuals but
forex payments; Funding: alternative funding options such as crowdfunding rather than
also large firms.
loans to support growth; Accounting: online accounting systems, real time invoicing to
Explain
devices; Customer insight and engagement (as part of payment processing for example)
different ways
that the Board
of Director can
use fintech in
both borrowing
and investment.

Economics (S) _ CW3

 • Fintech to invest money includes investing more accessible for example
peer-to-peer lending, easier to move money, access to money when out of the office via
mobile technology

Very good
knowledg
Excellent e and Good
knowledge understan knowledge
and ding of and Adequate
understandin fintech understandin knowledge and Limited knowledge
g of fintech and the g of fintech understanding of and understanding of
and the importan and the fintech and the fintech and the
importance ce to the importance importance to the importance to the
to the business to the business for business for
business for for business for borrowing, borrowing, managing
borrowing, borrowin borrowing, managing and and investing money.
managing g, managing investing money. (4 (0-3 marks)
and investing managing and investing marks)
money. and money.
(7-10 marks) investing (5 marks)
money.
(6 marks)

Model Answer:
Executive • Executive summary should provide a brief overview of the report
Summary (5 • Clear structure and layout
Marks) and • Writing style: professional and concise
Presentation • Appropriate Harvard referencing
and Academic Good
Practice (5 Excellent Good with
with Satisfactory with Weak with some
Marks) with precise, precise, full
precise, full and appropriate
full and and
full and

Economics (S) _ CW3

 appropria
appropriate te appropriate appropriate
references.
references. reference references. references.
s.
A good
example A good
An exemplar Structured layout
of example of Limited structure and
of structured and mainly
structure structured
d
layout
layout and layout and accurate
and expression. (0-1
professional professional expression. (2
professio marks)
and and marks)
nal and
accurate
accurate accurate
expressio
expression. expression.
n. (4
(5 marks) (3 marks)
marks)

Economics (S) _ CW3

As demand increases from the current demand (D1) to increased demand there is a shift to the right (D2) of the demand curve. The increase in demand (Q1 to Q2)
will result in an increase of the equilibrium price from (E1 to E2) and Willa’s Kitchen may be able to increase their prices (P1 to P2).

Economics (S) _ CW3

As supply increases from the current supply (S1) to increased supply there is an outward shift (S2) of the supply curve. The increase in quantity (Q1 to Q2) will
result in a decrease of the equilibrium price from (E1 to E2) and Willa’s Kitchen may need to reduce their prices (P1 to P2) to remain competitive.

Economics (S) _ CW3