Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 1 of 20

© Copyright Schools Active World Wide

2011 FINAL GLOBAL COMMERCE EXAMINATION

Instructions

All answers are to be written in the spaces provided on the examination paper.

Student name is to be written on the top of each page.

Read each instruction and each question carefully.

The marking scheme and suggested time per question are provided to help you

in answering each question.

This examination paper has been set in Australia and will be marked in Australia.

Time: 1 ½ hours

5 minutes additional reading time (no writing)

SECTION TOPIC MARKS APPROXIMATE TIME

SECTION I Glossary and Terminology

25 marks 15 minutes

SECTION II Short Answer Stimulus-Based

Questions

40 marks 35 minutes

SECTION III Mathematical/Financial Literacy

15 marks 20 minutes

SECTION IV Case Study-based Structured Response

20 marks 20 minutes

TM

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 2 of 20

© Copyright Schools Active World Wide

2011 Australian International Schools’ CertificateTM

Examination

Section I Glossary and Terminology 25 marks

Attempt all questions in the spaces provided on the following pages.

Allow about 15 minutes for this section.

In your answers you will be assessed on your ability to:

• Communicate understanding of key terms and concepts

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 3 of 20

© Copyright Schools Active World Wide

Question 1 (20 marks : 1 mark each)

Choose the relevant term from the top list and write against the correct definition in

the second list below.

Amnesty International dividend budget

durability bicameral customs

exchange rate foreign direct investment perishable

itinerary non discretionary opportunity cost

Greenpeace product rule of law

values United Nations survey

World Trade Organisation (WTO) promotion

Definition/meaning Term

The good or service that is for sale

The act done to attract people to use a product such as through

advertising

How long a product will last for

An international organisation that exists to encourage

globalisation and the formation of free trade agreements

The value of different currencies against other currencies

The proposed and detailed plan of a journey or holiday

A financial plan that is an estimate of future revenues and

expenditure

The highest global governance body or forum

The term given to a two house system of parliament

The idea that no one is above the law and all people are equal

A human rights organisation that aims to raise awareness of

human rights issues globally

An NGO whose focus is on environmental protection

The beliefs and customs that underpin a way of life for people

in a particular place

The purchase of capital in a nation by business interests

outside of the country, culture or nation

The traditional practices that characterise the way people of

different cultures behave

Goods that do not last a long time

A market research instrument that involves asking questions

The value of something given up or foregone when making an

economic decision

The term given to allocated financial commitments and

obligations

The distribution of a portion of the profits earned by a

company, to its shareholders.

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 4 of 20

© Copyright Schools Active World Wide

Question 2 (5 marks in total : ½ mark for each)

What do the following letters stand for?

Letters Full name/term

OAU _____________________________________________

EU _____________________________________________

WTTC _____________________________________________

EFTPOS _____________________________________________

GDP _____________________________________________

FDI _____________________________________________

What is the main currency used in each of the following countries?

Country Main Currency

Vietnam Vietnam Dong (VND)

Australia _____________________________________________

South Korea _____________________________________________

India _____________________________________________

Hong Kong _____________________________________________

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 5 of 20

© Copyright Schools Active World Wide

2010 Australian International Schools’ CertificateTM

Examination

Section II Short Answer Stimulus-Based Questions

40 marks

Attempt Questions 3 - 5 in the spaces provided on the following pages.

Allow about 35 minutes for this section.

In your answers you will be assessed on your ability to:

• Read and interpret textual and graphical information

• Communicate effectively using relevant terminology and concepts

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 6 of 20

© Copyright Schools Active World Wide

Question 3 (10 marks)

Read the advertisement below, and use it and your own knowledge to answer the

short questions which follow.

Source : Sydney Morning Herald January 2011

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 7 of 20

© Copyright Schools Active World Wide

(a) Explain the purpose of the advertisement. (2 marks)

____________________________________________________________

____________________________________________________________

(b) Name two members of the Japan Railways Group (JR Group). (2 marks)

____________________________________________________________

____________________________________________________________

(c) What is the yen price for a 14 day Superior Class JR exchange order for an

adult? (1 mark)

____________________________________________________________

(d) List 3 (three) things specified on the Exchange Order. (3 marks)

(i) _________________________________________________________

(ii) _________________________________________________________

(iii) _________________________________________________________

(e) List 2 (two) advantages of a Japan Rail Pass that are stated in the

advertisement. (2 marks)

(i) _________________________________________________________

(ii) _________________________________________________________

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 8 of 20

© Copyright Schools Active World Wide

Question 4 (15 marks)

Read the newspaper clipping below: “Only Google stands in way of Facebook”. Use

this clipping and your own knowledge to answer the short questions which follow.

Source: “Only Google Stands in way of Facebook”, Sydney Morning Herald, January 2011

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 9 of 20

© Copyright Schools Active World Wide

(a) Has the value of Facebook increased OR decreased on the Secondary

Exchange Shares Post since mid-December 2010, and by how much?

(2 marks)

____________________________________________________________

(b) Place in descending order of values from 1-3, Facebook, eBay, Google.

(3 marks)

(i) _________________________________________________________

(ii) _________________________________________________________

(iii) _________________________________________________________

(c) Explain what has happened to Facebook‟s value since March 2010. (2 marks)

____________________________________________________________

____________________________________________________________

(d) Explain why social networking media companies have experienced such a

change in popularity. (3 marks)

____________________________________________________________

____________________________________________________________

____________________________________________________________

(e) From your reading of the final three paragraphs, outline what some investors

think might be happening with the estimate of Facebook‟s value. (2 marks)

____________________________________________________________

____________________________________________________________

(f) From your knowledge of countries where there is a high degree of central

government control, such as China and Vietnam, give an argument for

restricting the freedom of Facebook and limiting access to social networking

sites. (3 marks)

____________________________________________________________

____________________________________________________________

____________________________________________________________

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 10 of 20

© Copyright Schools Active World Wide

Question 5 (15 marks)

Read the newspaper clipping below: “BlackRock boss still bullish”. Use this clipping

and your own knowledge to answer the short questions which follow.

“INVESTMENT

BlackRock boss still bullish” Source: Sydney Morning Herald, February 2011

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 11 of 20

© Copyright Schools Active World Wide

(a) What is BlackRock? (1 mark)

____________________________________________________________

(b) Which business section of Barclays Bank did BlackRock purchase in 2010?

(1 mark)

____________________________________________________________

(c) The title of this article is „BlackRock boss still bullish‟. What is the meaning of

„bullish‟? (1 mark)

____________________________________________________________

____________________________________________________________

(d) The opening paragraph uses the statement „America is not a basket case‟. What

does this statement mean? (1 mark)

____________________________________________________________

____________________________________________________________

(e) Larry Fink expresses a range of personal opinions about the world investment

situation in this article. List 2 (two) of Fink‟s opinions. (2 marks)

(i) _________________________________________________________

(ii) _________________________________________________________

(f) What was the average BlackRock staff pay in 2010 for each employee?

(1 mark)

____________________________________________________________

(g) Outline what „global financial crisis‟ means. (2 marks)

____________________________________________________________

____________________________________________________________

(h) What percentage of revenue in US securities businesses is generally allocated

to staff costs? (1 mark)

____________________________________________________________

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 12 of 20

© Copyright Schools Active World Wide

(i) In any business budget, staff costs are generally an important entry. If you were

the CEO of BlackRock funds management with its 9100 global employees,

explain how important each of the following financial considerations would be

to you. (5 marks)

(i) The cost of property:

____________________________________________________________

____________________________________________________________

(ii) Global Exchange Rates:

____________________________________________________________

____________________________________________________________

(iii) Staff packaging:

____________________________________________________________

____________________________________________________________

(iv) Staff Relocation:

____________________________________________________________

____________________________________________________________

(v) Staff professional development:

____________________________________________________________

____________________________________________________________

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 13 of 20

© Copyright Schools Active World Wide

2010 Australian International Schools’ CertificateTM

Examination

Section III Mathematical /financial literacy

15 marks

Attempt Question 6.

Allow about 20 minutes for this section.

Attempt all questions in the spaces provided on the following pages.

In your answers you will be assessed on your ability to:

• use your knowledge and the information provided

• communicate using relevant commercial terminology and concepts

• present a well-structured answer

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 14 of 20

© Copyright Schools Active World Wide

Question 6 (15 marks)

(a) Using the information provided below create a monthly budget for Van.

(5 marks)

Van earns 30m VND per year, and is paid monthly. He has no other income. His

annual (yearly) expenses are as follows:

House costs: 10m VND

Motorbike: 2m VND

Mobile phone: 1m VND

Clothes: 1.2m VND

Food: 1m VND

Entertainment: 1m VND

Electricity, water and internet: 2m VND

Other expenses: 3m VND

Monthly budget for Van

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

(b) Showing full working, calculate the monthly savings that Van has. (2 marks)

____________________________________________________________

____________________________________________________________

____________________________________________________________

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 15 of 20

© Copyright Schools Active World Wide

(c) Determine how long it will take for Van to save for a holiday to Cambodia and

Laos that has a cost of 4.5m VND. (3 marks)

____________________________________________________________

____________________________________________________________

____________________________________________________________

(d) Using the information in the Table create a graph for Van‟s savings over the

past 4 years. (3 marks)

Date 30th

June

2007

31st

Dec

2007

30th

June

2008

31st

Dec

2008

30th

June

2009

31st

Dec

2009

30th

June

2010

31st

Dec

2010

Amount

saved (m)

VND

NIL 0.5 1.5 1.8 2.3 1.7 2.1 2.8

(e) Clearly show on the graph above when a recession might have affected Van‟s

savings. (1 marks)

(f) Estimate Van‟s savings in Dec 2011. (1 mark)

_____________________________________________________________________

_____________________________________________________________________

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 16 of 20

© Copyright Schools Active World Wide

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 17 of 20

© Copyright Schools Active World Wide

2010 Australian International Schools’ CertificateTM

Examination

Section IV Case Study-based Structured Response

20 marks

Attempt Question 7 and answer in the spaces provided on the

following pages.

Allow about 20 minutes for this section.

In your answers you will be assessed on how well you:

• use your knowledge and the case study below

• communicate using relevant commercial terminology and concepts

• present a logical, well-structured answer to the question

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 18 of 20

© Copyright Schools Active World Wide

Question 7 (20 marks)

GAMBLING

Whatever you do in Macau, Stanley Ho makes money.

Adapted from “Whatever you do in Macau, Stanley Ho make money”. Sydney

Morning Herald, 2011.

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 19 of 20

© Copyright Schools Active World Wide

(a) Macau is a city of which country? (1 mark)

____________________________________________________________

(b) STDM are initials for what business?(1 mark)

____________________________________________________________

(c) What percentage of STDM is Mr Ho‟s holding? (1 mark)

____________________________________________________________

(d) SJM Holdings runs what percentage of Macau‟s casinos? (1 mark)

____________________________________________________________

(e) List 5 (five) different employment activities, not including casinos, where

STDM has some ownership in Macau. (5 marks)

(i) _________________________________________________________

(ii) _________________________________________________________

(iii) _________________________________________________________

(iv) _________________________________________________________

(v) _________________________________________________________

(f) Mr Ho‟s Macau gambling revenue in 2010 was how much? (1 mark)

____________________________________________________________

(g) Describe 5 (five) things under the following headings, that you would want to

think about if you were Mr Ho running his Macau business. (10 marks)

(i) Personal/Ho Family

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

Student Name _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

AISC Global Commerce Examination 2011 Page 20 of 20

© Copyright Schools Active World Wide

(ii) Environmental/sustainability

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

(ii) Future Financial Planning

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

(iv) Social responsibility / welfare

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

(v) Relationship to government

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

End of paper.