Volkswagon

Question 1

For Volkswagen the benefits were (4)

Answer 1

Modern factories could be built cheaply and easily
 Guaranteed market for VW in Brazil and South America
 Wages low so production cost lower
 Military government in brazil so strikes unlikely

Question 2

For Brazil benefits were (4)

Answer 2

5% of export earnings from cars
 Support services
 Jobs
 Skills

Question 3

Problems for Brazil (5)

Answer 3

Leakage – money from profits taken out by VW
 Increase car use in brazil has increased cost of oil imports
 Rural-urban migration for workers has caused problems in Sao Paulo
 Wages of the workers on the assembly line are too low to support the family
 Workers sometimes forced to work very long hours

Question 4

When and where

Answer 4

Sao Paulo in the mid 1960s