Paper 2 · November 2020 · role of enterprise in the economy
An enterprise that processes local raw materials instead of exporting them raw
Areduces the country's total output
Braises the price of all imported goods
Cremoves the need for foreign currency
Dadds value inside the country
Explanation
Processing turns a cheap raw commodity into a dearer finished good, and the wages, profit and skills created by that step stay at home. Exporting the material raw hands that value to a processor abroad.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Nov 2020, Q1