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Transcription of this question: 5.All the World is a Village (WV)All rhe World is a Village (WV) sells artisanal* products from many developing countries. Basedin Appleton, Wisconsin, United States (US), WV is a non-profit organization founded in 1972 byYvonne Osheim. During a month’s stay in Peru, she had seen numerous beautiful products made byPeruvian artisans. Fearing that their skills would be lost, she opened a retail shop selling artisanalproducts from Peru. In the 1980s, she also started importing and selling products from otherdeveloping countries.WV’ vision statement is: “Making the world a village by supporting local artisans”. Today, 297 shops,under the name “All lhe World is a Village’, operate throughout the US. Some shops are owned byWV itself and trade on a non-profit basis. Others are profit-based franchises whose owners agree tolimit their salaries and dividends. This way, WV can follow its mission statement: “To help artisansin developing countries to earn fair incomes by using traditional skills in an environmentally friendlymanner”. The company’s principles are: fair prices, fair credit, long-term commitment, workingtogether, and sustainable development.Since the 2007 global economic recession, WV has faced several challenges. Turnover at almostall of the shops has declined significantly Despite the franchise agreement, some franchises havebegun to sell products manufactured inexpensively in large factories in Asim These franchise ownersclaim that without the imported products, they would have to close their shops. In addition, in orderto cut costs, many artisans in developing countries have started to use non-environmentally friendlymaterials In their products.Intæticmal Orælimtion 20141(a)(b)(c)(d)Define the term dividends.Explain the advantages for WV of operating both non-profit and profit-basedshops.With reference to WV, analyse the roles of a mission statement and a visionstatement.Discuss whether Yvonne should allow artisans to use “non-environmentallyfriendly materials in their products” to cut costs.[2 marks][5 maÅs][7 ma*s]

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