12. Read the following extract from Britain 1973: An Official Handbook and answer the questions below it.

The pattern of machine tool production is highly cyclical; deliveries in 1971 were valued at £190 million, including numerically controlled tools worth £19 million. Exports of complete machines in 1971 had a value of £97 million, 11 per cent up on 1970. Of the orders on hand at the end of 1971 (£96 million), 56 per cent were for export; Australia (£9 million), the Federal Republic of Germany (£8 million), France

(£7 million) and Italy (£6 million) were the main overseas markets in 1971.

Seven of the industry's 200 or so companies provide over half of total deliveries, although because of the high degree of specialisation small firms are numerically predominant.

(a) What do you understand by the pattern of machine-tool production is highly cyclical'?

(b) Explain in your own words one of the following:

'the high degree of specialisation'

'small firms are numerically predominant'.

(c) Would you say that machine-tool manufacturers are all firms of much the same size? Give reasons for your answer.

(d) Estimate (as nearly as you can) the average annual exports of an average small machine-tool firm in 1970 or 1971.

(20 marks)

(LCC Private Secretary's Certificate)

NOTE: You should study Section 13 'Visual Communication' before attempting the following two questions.