Fig. 1 shows a chain of production for oil in a country. DRILLING FOR OIL ↓ REFINING OIL ↓ TRANSPORTING PETROL ↓ PETROL STATION Fig. 1 Use Fig. 1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2016). The mark or mark type is shown in brackets.

1. [1] (a) (i) 1 mark for correct answer • Refining oil
2. [2] (a) (ii) Valid points include: • the petrol station is dependent on the oil being drilled (1) and being transported (1) and being sold in petrol stations (1) Accept any other relevant points
3. [4] (b) (i) 1 mark for each reason with a further 1 mark for an explanation to a maximum of two reasons or 4 × 1 mark • Advertising may be used to inform/be informative consumers (1) of the products available/jobs (1) • Helps to increase sales (1) so increasing profits/income (1) • Can be persuasive (1) and try to attract consumers to buy products (1) • To remind consumers (1) that their products still exist (1) • To create a brand name/image (1) creating brand loyalty (1) • It may also be used to improve the general public's view of the oil industry (1) by emphasising the good it does/create better image (1) • To gain economies of scale (1) reducing costs (1) Accept any other relevant points.
4. [3] (b) (ii) 1 mark for a suggested media with up to a further 2 marks for the reasons for the choice N.B. Television is not considered appropriate for a local petrol station. • Radio (1) large audience (1) can be targeted (1) use of jingles/music (1) cheap (1) • Newspaper (1) local readership (1) can provide details/information (1) kept for reference (1) cheap (1) can target customer groups (1) • Leaflets/pamphlets/brochures (1) may be distributed in immediate area (1) and are cheap to produce (1) can be kept for reference (1) can provide details/information (1) • Billboards/posters/hoardings (1) use of colour (1) seen again and again (1) wide choice of sites (1) cheap to produce (1) 24/7 (1) provides information (1) • Internet/Social Media (1) adverts can be easily changed (1) can provide details/information (1) 24/7 (1) can target customers (1) • Directories or e.g. (1) can provide details/information (1) cheap to produce (1) can be kept for reference (1) • Magazines (1) long life span (1) provides information (1) can target customers (1) use of colour (1) kept for reference (1) Accept any other relevant points.
5. [4] (c) (i) 1 mark for each item stated • Visible exports • Invisible exports • Visible imports • Invisible imports • Transfer payments • Borrowing • Investment • Official reserves Note: The phrase imports and exports or visible and invisible trade = 2 marks maximum.
6. [6] (c) (ii) Level 2 (4-6 marks) Has discussed whether or not the country should join a trading bloc and has given a reasoned opinion (If a candidate has presented a one-sided argument, award 4 marks max.) Level 1 (1-3 marks) Has commented on the country joining a trading bloc with/without an opinion • There will be more trade encouraged with free trade between member countries, with free access to larger markets leading to a wider choice of goods for consumers • Prices will be more competitive with less controls of import duties/quotas, with more opportunities to export • Ability to set up factories in each other's countries able to take advantage of cheap land, and raw materials. Financial aid given for particular projects/industries frees up labour to find work in another country • Standardisation of measures/documents, possibly currency making it easier to sell to other countries • Competition from companies of other countries because if a country is able to produce goods as a cheaper price than local producers making the same goods then it becomes cheaper for retailers to import those goods • Countries exclude other countries with which they had good trade links e.g. Australian wool into Europe with the external tariff making the wool more expensive • Countries can be over regulated with too many rules with too many decisions not favouring individual bloc members e.g. EU CAP on UK farmers • The annual contribution made by governments to trading bloc budgets may be large causing less to be spent within the country • Businesses may have to adopt their products to suit the needs/tastes of different countries consumers, this may add to their costs. Accept any other relevant points.