IGCSE, A Level Business Student Forum

Q3 Analyse the advantages of industrialization. [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[KN] Economies of scales achieved
[AN] Due to the economy moving from labour-intensive methods to capital-intensive methods the investment in the short term would be high but later on due to a fall in the labour cost the overall cost of producing each item reduces
[AN+] Hence due to their average cost decreasing it gives them the incentive to lower the prices and increase the number of sales for their products

{KN} Competitive head/increased competition
{AN} Due to the use of a more capital-intensive method the quality of the product produced increases as the chance of errors is minimized and the use machine also allows the product to be made in far less time in comparison with the product made by labour
{AN+} Thus the product of the business would be high in demand as people are willing to pay a higher price for good quality and so this gives them a competitive edge against its competitor and further increases competition in the economy.

[KN] Economic Growth
[AN] Industrialisation can lead to economic growth. It leads to increased production efficiency and resulting in higher overall output and income levels.
[AN+] thus increased efficiency levels of the the economy.

[KN] Economies of Scale
[AN] Large-scale industrial production allows for economies of scale, reducing the average cost of producing goods.
[AN+] This can lead to lower prices for consumers and improved affordability for a wide range of products.

[KN]Increase in productivity(improved quality of products)
[AN]Due to industrialization, machines are used in the production process which makes it more efficient as machines make less errors as compared to manual labour and their efficiency leads to higher quality products
[AN+]Thus this may lead to better brand image and customer loyalty

[KN]Economies of scale
[AN]The initial investment of buying machinery may be high however as time goes on the cost of producing each product decreases as compared to labour producing each product
[AN+]Thus this will be very beneficial for the business as average costs will most definitely decrease in the short run

[KN] Increase in Productivity
[AN] The use of machinery makes the production process more efficient.
[AN+] Thus this will lead to an increase in output.

[KN] Less Cost of production
[AN] machinery are likely to make less errors as compared to humans and hence this cuts down wastage.
[AN+] Thus this will lead to an increase in the total revenue and profits.

[KN]the government would be able to tax the company in cooperate taxes
[AN] this would provide government with revenue to spend on things such as education and healthcare
[AN+]this improves the living standards in a country and improves its future quality

[KN] industrialisation involes the use of greater technology and innovation
[AN] this helps a business increase its production and output whilst maintaining good costs
[AN+] this helps a business advance and expand further which helps the GDP of a country

[KN] Economies of scale
[AN] Most of the industries run on machinery which means changing from labour intensive to capital intensive the Cost of production will reduce as lower Employment
[AN+] which would lead to high profit thus motivating firms to expand

[KN] Increase in taxes
[AN]As an increase in firms size the amount of Tax collected by the government would increase
[AN+] leads to higher amount from tax revenue thus more amount to spend on healthcare and education etc

[KN] Increased Productivity
[AN] Adaption of more effecient production methods so minimum resources while maximum output.
[AN+] Results in lower costs for the business so icreasing it's revenue.
[KN] Economies of Scale
[AN] Due to Mass Units being produced economies of scale could be achieved due to less average costs.
[AN+] This benefits business due to increase profitability.

[KN] Efficiency and Productivity
[AN] Industrialization means businesses shifting their method of production to capital-intensive).
[AN+]When businesses shift they will be able to boost their productivity as machinery has better efficiency than human beings and businesses will increase their production

[KN] Economies of scale
[AN] Due to mass production businesses will reach economies of scale and businesses will waste less
[AN+] Leading to higher profitability

[kn] businesses produce more manufactured products therefore higher added value due to bieng more processed and other improvisations
[an] this allows businesses to charge higher prices as customers are willing to pay such prices
[an+] increases profit margins and therefore dividend payments, increasing willingness of shareholders to invest
[kn] manufactued goods can be produced with the help of advanced machinery with lesser labour therefore lower costs
[an] consumers can be charged lower prices while covering costs and keeping a good amount of profits
[an+] increased competetiveness

(Kn)stimulate economic growth(an) a shift from primary to secondary will provide job opportunities and increase output improving the economic conditions (an+)this will lead multinational companies to set up in that country due to the economic growth
(Kn)increase’s employment rate(an)with the increase in secondary sector businesses more and more people will be willing to work and will look for jobs which are now available (an+) this will lower cost of production for the firms as they can now get labour cheaply

Cost saving
Industrialization often leads to cost savings through economies of scale. By producing goods and services on
a larger scale using advance machinery businesses can reduce their per-unit costs,
resulting in higher profit margins.

[kn]Access to skilled labor
[an]Industrialization often leads to the development of educational institutions and training centers, providing businesses with access to a skilled workforce.
This enables businesses to hire qualified employees who can contribute to their growth and success.

[KN]stimulate economic growth
[AN] a shift from primary to secondary will provide job opportunities and increase output improving the economic conditions
[AN+]this will lead multinational companies to set up in that country due to the economic growth
[KN]increase’s employment rate
[AN]with the increase in secondary sector businesses more and more people will be willing to work and will look for jobs which are now available
[AN+] this will lower cost of production for the firms as they can now get labour cheaply

[KN] Error free process
[AN] As machines are able to work 24/7 without getting tired , this will increase the qualify of products in contrast to the quantity.
[AN+] thus this will help to build customer loyalty and increase the output leading to economic growth.

[KN] Cost and time saved
[AN] Since machines do not get sick or need to take leaves so this will save costs for the business as there will be no need to spend on these issues and the production process will be smooth with efficient use of time.
[AN+] Thus this will lead to competitiveness with a good brand image .

KN: Economic Growth
AN: Industrialization leads to increased production and economic diversification, contributing to overall economic growth and stability. It generates jobs and raises incomes
AN+: improving the standard of living for many
KN: Social Progress
AN: It often leads to social and cultural changes, such as increased access to education, healthcare, and social services
AN+: along with changing societal norms.