Please check the examination details below before entering your candidate information
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel
Level 3 GCE
Tuesday 2 June 2020
Morning (Time: 2 hours) Paper Reference 9EB0/02
Economics B
Advanced
Paper 2: Competing in the global economy
You do not need any other materials. Total Marks
Instructions
• Use black ink or ball-point pen.
• centre
Fill in the boxes at the top of this page with your name,
number and candidate number.
• Answer all questions.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
• The total mark for this paper is 100.
• The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
• Read each question carefully before you start to answer it.
• Try to answer every question.
• Check your answers if you have time at the end.
Turn over
*P61852A0128*
P61852A
©2020 Pearson Education Ltd.
1/1/1/1/
, Answer ALL questions.
SECTION A
Read the following extracts (A to C) before answering Question 1.
Write your answers in the spaces provided.
Extract A
Sainsbury’s Asda merger: Competition and Markets Authority (CMA) blocks merger
In its final report, published in April 2019, the CMA blocked the proposed merger
between Sainsbury’s and Asda. The two supermarket chains announced a deal in May
2018 that would have created a giant supermarket chain with around £51bn in sales. 5
The CMA investigated the proposed merger after fears the combined company could
reduce choice, raise prices or provide a worse quality of service for consumers. The
investigation considered whether the merged company would squeeze suppliers by
using its increased buying power. If the merger were successful, the combined firm
would account for around 30% of UK grocery sales. 10
Before the proposed merger was blocked, a spokesperson for Sainsbury’s said: “The
combination… will benefit consumers and the wider UK economy. We are confident
in our case and we look forward to continuing to work closely with the CMA.” An Asda
spokesperson also said: “We are confident our reasons for the merger are justified and
that the CMA will take a rigorous and evidence-based approach to their assessment of 15
this deal and we will work closely with them to support the process.”
(Source: adapted from www.independent.co.uk/news/business/news/sainsburysasda-merger-competition-
watchdog-launches-formal-investigation-a8504301.html)
Extract B
Tesco to take on budget supermarkets with a cut-price brand named after founder
Jack Cohen
In 2018, Tesco unveiled its new chain Jack’s, named after the Tesco founder Jack Cohen. It
could be the UK’s biggest supermarket challenge to the German discounters Aldi and Lidl.
Mainstream supermarkets have been searching for a way to get into the fast‑growing 5
discount market, having seen Aldi and Lidl gain market share when rising food prices
and falling real wages encouraged consumers to shop around for groceries. Aldi and Lidl
controlled more than 13% of the UK grocery market in 2018, compared with less than 9%
in 2014.
Meanwhile, sales at discount retailer B&M increased by 23% to £970m in the three 10
months to December 2017, up from 20% growth in the same period of 2016. Though it
does not sell fresh food, B&M’s range of cut-price branded staple foods, such as biscuits,
crisps and breakfast cereals, pose an additional threat to the 67% market share of the
‘big four’ Tesco, Sainsbury’s, Morrisons and Asda.
(Source: adapted from www.theguardian.com/business/2018/sep/19/tesco-opens-jacks-first-discount-
store-battle-lidl-aldi)
2
*P61852A0228*
, Extract C
Index of UK butter prices, 2013 to 2018
Year and month Average price of butter (250g) Index
July 2013 £1.51 100
July 2014 £1.58 105
July 2015 £1.58 105
July 2016 £1.36 90
July 2017 £1.50 99
July 2018 £1.80
(Source: adapted from www.ons.gov.uk/economy/inflationandpriceindices/timeseries/kw9b/mm23)
UK producer input cost inflation % change: food products
6
Input cost inflation % change
4
2
0
–2
–4
‘15 Apr. Jul. Oct. ‘16 Apr. Jul. Oct. ‘17 Apr.
Month and year
(Source: adapted from https://www.theatlas.com/charts/SkmQ8rBBb)
3
*P61852A0328* Turn over
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel
Level 3 GCE
Tuesday 2 June 2020
Morning (Time: 2 hours) Paper Reference 9EB0/02
Economics B
Advanced
Paper 2: Competing in the global economy
You do not need any other materials. Total Marks
Instructions
• Use black ink or ball-point pen.
• centre
Fill in the boxes at the top of this page with your name,
number and candidate number.
• Answer all questions.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
• The total mark for this paper is 100.
• The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
• Read each question carefully before you start to answer it.
• Try to answer every question.
• Check your answers if you have time at the end.
Turn over
*P61852A0128*
P61852A
©2020 Pearson Education Ltd.
1/1/1/1/
, Answer ALL questions.
SECTION A
Read the following extracts (A to C) before answering Question 1.
Write your answers in the spaces provided.
Extract A
Sainsbury’s Asda merger: Competition and Markets Authority (CMA) blocks merger
In its final report, published in April 2019, the CMA blocked the proposed merger
between Sainsbury’s and Asda. The two supermarket chains announced a deal in May
2018 that would have created a giant supermarket chain with around £51bn in sales. 5
The CMA investigated the proposed merger after fears the combined company could
reduce choice, raise prices or provide a worse quality of service for consumers. The
investigation considered whether the merged company would squeeze suppliers by
using its increased buying power. If the merger were successful, the combined firm
would account for around 30% of UK grocery sales. 10
Before the proposed merger was blocked, a spokesperson for Sainsbury’s said: “The
combination… will benefit consumers and the wider UK economy. We are confident
in our case and we look forward to continuing to work closely with the CMA.” An Asda
spokesperson also said: “We are confident our reasons for the merger are justified and
that the CMA will take a rigorous and evidence-based approach to their assessment of 15
this deal and we will work closely with them to support the process.”
(Source: adapted from www.independent.co.uk/news/business/news/sainsburysasda-merger-competition-
watchdog-launches-formal-investigation-a8504301.html)
Extract B
Tesco to take on budget supermarkets with a cut-price brand named after founder
Jack Cohen
In 2018, Tesco unveiled its new chain Jack’s, named after the Tesco founder Jack Cohen. It
could be the UK’s biggest supermarket challenge to the German discounters Aldi and Lidl.
Mainstream supermarkets have been searching for a way to get into the fast‑growing 5
discount market, having seen Aldi and Lidl gain market share when rising food prices
and falling real wages encouraged consumers to shop around for groceries. Aldi and Lidl
controlled more than 13% of the UK grocery market in 2018, compared with less than 9%
in 2014.
Meanwhile, sales at discount retailer B&M increased by 23% to £970m in the three 10
months to December 2017, up from 20% growth in the same period of 2016. Though it
does not sell fresh food, B&M’s range of cut-price branded staple foods, such as biscuits,
crisps and breakfast cereals, pose an additional threat to the 67% market share of the
‘big four’ Tesco, Sainsbury’s, Morrisons and Asda.
(Source: adapted from www.theguardian.com/business/2018/sep/19/tesco-opens-jacks-first-discount-
store-battle-lidl-aldi)
2
*P61852A0228*
, Extract C
Index of UK butter prices, 2013 to 2018
Year and month Average price of butter (250g) Index
July 2013 £1.51 100
July 2014 £1.58 105
July 2015 £1.58 105
July 2016 £1.36 90
July 2017 £1.50 99
July 2018 £1.80
(Source: adapted from www.ons.gov.uk/economy/inflationandpriceindices/timeseries/kw9b/mm23)
UK producer input cost inflation % change: food products
6
Input cost inflation % change
4
2
0
–2
–4
‘15 Apr. Jul. Oct. ‘16 Apr. Jul. Oct. ‘17 Apr.
Month and year
(Source: adapted from https://www.theatlas.com/charts/SkmQ8rBBb)
3
*P61852A0328* Turn over
