Aufgabe Vorschlag B - Aufgabe 2 · Abitur Hessen Wirtschaftslehre LK · bilingual Englisch 2021

IceBuster plc

Due to global climate change temperatures have risen steadily over time. As a result, the demand for making all kinds and forms of ice, such as ice cubes or ice cream, has increased over the years. The Australian company IceBuster plc located in Brisbane, Australia, specialises in the manufacture and distribution of a wide variety of ice making equipment, ice-maker machines and ice cream machines for ice cream parlors, shops, bars and restaurants worldwide.

A recent market research study has revealed that IceBuster plc has lost a tremendous part of its market share. Reasons are, among other things, that IceBuster plc often could not deliver on time because of capacity limits, frequent maintenance work and employee absenteeism.

The managers of IceBuster plc have decided to expand their production facilities and are considering the acquisition of new machinery from a British company. In the controlling department two investment alternatives are being discussed, machine type 1 and machine type 2 (Material 1).

2 Investments in the Economy

Investments are of great importance for both, the investing company and the economy. A distinction is made between different types of investments in an economy.

2.1

Outline the basic type of investment made by IceBuster plc as described in assignment 1.1. Show the effects the investment activity has on the investing company as well as on the economy as a whole. [13 BE]

When the company IceBuster plc decided to invest, it based its decision on the changing capital market interest rate in Australia. In Material 2 the response of investment to the capital market interest rate, denoted as the investment function, is depicted. The straight line is just a simplified representation of the general relationship.

Material 2: Capital market interest rate and investment

2.2.1

Describe and interpret the graph. [5 BE]

2.2.2

A changing capital market interest rate is not the only factor influencing a company's marginal propensity to invest (MPI). Outline and explain four more factors. [10 BE]