Global and External Influences

Question 1

Covid 19 - furlough schemes

Answer 1

• to protect jobs despite lack of work
• 16% of jobs in the ‘wholesale and retail trade, repair of motor vehicles and motorcycles’ sector benefited from furlough in 2020 and 7% of jobs in the sector benefited from furlough in 2021

Question 2

Govt interv to help businesses

Answer 2

• Business rates holidays - 100% relief for a financial, 66% business rate relief for 9 months
• Business interruption loan scheme - retailers could borrow up to 5 mil - interest free up to one year

Question 3

Brexit

Answer 3

• Left eu 31st jan 2020
• overseas suppliers may change the price of goods purchased to resell - affecting profit margins and pricing strategies for consumers
• availability of labour and distribution of goods
• UK relied heavily on skilled workers from throughout eu to distribute goods

Question 4

Protectionism

Answer 4

• imposes trade restrictions to disincentivise imports + encourage domestic productions
  USA - Biden and Trump lean towards protectionism to
  -protect jobs in US car market - more expensive to buy foreign replacements
  -encourage domestic production
• can lead to inefficiency by giving a price advantage - removes incentive to innovate

Question 5

Growth of electric cars

Answer 5

• in 2021 - 10% of global car sales were electric - x4 the market share in 2019
• countries introducing laws to ban the sale of p + d vehicles - strive to meet international sustainability targets
• china - electric 2 and 3 wheeler vehicles represent half of china’s sales
  -the speed of charging infrastructure roll - out in china is faster than in most other markets to support the growth of EVs
• in Brazil, India and indonesia - under 0.5% of car sales are EV