Item C: Model Answers January 2011:
Read the model answers and identify the different answer techniques that have been
used to obtain full marks in the exam. Space is left at the end of each question to
identify the technique specific to that particular question.
1.) Explain one reason why the sports retailer buys so much of its stock from abroad.
(2 marks)
The case study states stock from abroad is supplied at very low costs.
This allows them to lower their prices to compete and increase demand.
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2.) Explain the possible reasons why some consumers continue to buy goods which are not produced
in an ethical manner.
(6 marks)
The case study states that the clothes are produced in a sweat shop where workers receive little pay.
Consumers may buy goods made buy these people as the price can be lower due to lower costs.
Therefore some consumers continue to buy goods made in an unethical manner are more concerned with
price and value, rather than the unethical working conditions.
The case study states that the clothes are made in sweat shops by children.
Consumers may not know that this information as the label will only identify the country it was produced in.
Therefore some consumers continue to buy goods made in an unethical manner as they may not know
they are made by children in unethical conditions.
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3.) Alex does not think it is right for people to boycott the retailer where he works. What do you think are the
best actions consumers can take to influence retailers to sell goods that have been produced in an ethical
manner? Give reasons for your answer.
From the case study Alex states that boycotts are not the answer to influencing retailers.
I believe that Alex may be biased in this view as boycotting shops like his, due to how the products are
made, may cost him his job.
Boycotts work at influencing firms because it’ll reduce their sales and therefore profit will decrease, which is
the aim for most private firms.
To prevent the boycott the firm will have to source its products from a more ethical supply chain such as fair
trade or use British firms where regulation is much tighter.
However this method would raise the costs of the products, and customers may not be prepared to pay this
higher price to improve the conditions of a child somewhere else in the world? While UK produced goods
may mean no job at all for foreign workers, which result in even worse living conditions, which some would
suggest is more unethical.
An alternative action to influence the retailer could be internet and/or facebook campaigns, writing to
retailers, writing to MPs, marches, leaflet distribution, petitions, direct action, buying Fairtrade.
This would involve ………………………………………………………………………………………………………
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This would influence retailers because ………………………………………………………………………………
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This may be better than a boycott because …………………………………………………………………………
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However it may not work ………………………………………………………………………………………………
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In conclusion I believe that the best action to influence retailers is a campaign.
What draws me to this conclusion is that a boycott will only work if it is done by a significant number of
people as otherwise it’ll not impact the retailers’ profit enough to encourage them to change their behaviour.
The campaign is easy to get off of the ground with facebook or other social media groups as this can be
done from home in minutes.
However the success of the campaign will depend upon the quality of the argument put forward. If powerful
then more people will believe ethics is important and will also take up some form of action.
This is when a boycott is more likely to succeed after a successful campaign as this’ll have a bigger affect
on the retailer.