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Pearson Edexcel Level 3 GCE
Monday 5 June 2023
9EB0/03
Paper
Morning (Time: 2 hours)
reference
Economics B
Advanced
PAPER 3: The economic environment and business
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SECTION A
AREA
DO NOT WRITE IN THIS
Read the following extracts (A–E) before answering
Question 1.
Write your answers in the spaces provided.
Extrac
tA
Whitsuntide hirings* – 16th April, 1879
Tuesday was the half-yearly hiring for Penrith. There was a large
attendance but the people seeking employment were far in excess of
those requiring labour. As a necessary consequence the wage rates were
lower than at previous hirings.
(Source: adapted from The Carlisle Journal April 16th 1879)
*Hirings took place twice a year in rural areas such as Cumbria. They
enabled all those seeking work as servants to meet with prospective
employers and negotiate wages and terms of employment.
AREA
DO NOT WRITE IN THIS
Extract B
Big Auto Had The Ultimate Barriers To Entry – Then Tesla Broke Through
Before the rise of Tesla, conventional wisdom held that it would be
practically impossible for a start-up company to challenge the giants of
the car industry. When economics professors explained the concept of
barriers to entry, the car industry was usually the
prime example. Selling cars in volume requires not only massive industrial resources, but
5
a highly complex supply chain and dealer network, so a start-up could
not possibly enter the industry and compete.
Events have shown that this model was not valid – or perhaps it would be
more accurate to say that it was no longer valid, considering the growing
importance of software and
technology in the auto industry. In retrospect, Tesla was in the right place at the right 10
time with the right idea.
(Source: adapted from https://cleantechnica.com/2022/03/03/big-auto-had-the-ultimate-
barriers-to-entry-then-tesla-broke-through/)
AREA
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, Extract C
What Is Good Global Marketing?
DO NOT WRITE IN THIS
Red Bull
Austrian company Red Bull is the world’s leading energy drink company, selling over
7.5 billion cans every year. Its distinctive packaging is recognised globally, as is its long
running slogan “Red Bull gives you wings”. 5
One of its most successful tactics is to host extreme sports events all
over the world. From the Red Bull Indianapolis Grand Prix in America, to
the Red Bull Air Race in the UK, to the Red Bull Soapbox Race in Jordan,
AREA
the brand’s universal strategy takes it here, there and everywhere.
Dunkin’ Donuts 10
In the US, National Donut Day happens every year in June. While
Americans get their hands dirty with a Boston crème (or two), Dunkin’
Donuts China serves up a fresh batch of dry pork and seaweed donuts.
With over 3,200 stores in 36 countries Dunkin’ Donuts has evolved its menu to satisfy the
DO NOT WRITE IN THIS
sweet tooth of its global customers. 15
From Korea’s Grapefruit Coolata, to Lebanon’s Mango Chocolate Donut
and to Malaysia’s Mochi Waffle, it is clear that Dunkin’ Donuts isn’t afraid
to celebrate cultural differences in an effort to strengthen its
international presence.
(Source: adapted from https://blog.hubspot.com/marketing/global-marketing-and-
international-business)
AREA
Extract D
Digital
markets
The emergence of the digital economy has been a powerful force
bringing about increased competition across a wide range of products
and services.
Digital platforms are at the forefront of innovation and disruption in various industries
across the globe. 5
Some of the most valuable companies in the world – Google, Amazon,
DO NOT WRITE IN THIS
Facebook and Apple – all embraced a digital platform business model for
some or all of their activities. Taxi apps such as Uber and Lyft have
revolutionised the taxi business model. Hotel and restaurant booking
platforms such as Booking.com and OpenTable changed the way in
which we plan holidays and evenings out. 10
While most consumers embrace and enjoy the ‘free’ services that many
of these companies offer, concerns have been expressed by traditional
media and retail businesses that have been negatively affected by the
AREA
digital economy. Other businesses whose access to markets is
increasingly reliant on digital platforms are worried about the
power these platforms now wield. 15
, (Source: adapted from https://globalcompetitionreview.com/guide/digital-markets-guide/
first-edition)
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