EEE Minerals Ltd is a multinational mining business with coal mines in many countries. Some parts of the mining industry are in the public sector and some are in the private sector.

Mark scheme

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

1. [2] (a) (i) Valid points include (Any 2 × 1 marks) • Primary production is concerned with obtaining raw materials/natural resources (1) from the earth/nature (1) as the first stage of production/extractive industry (1) Note. No marks for examples. Accept any other relevant points.
2. [4] (a) (ii) 1 mark for stating a difference with a further 1 mark for an explanation to a maximum of two differences (2 × 2 marks) • Public sector businesses are owned by national/local governments/state (1) whereas private sector businesses are owned by individuals or groups of individuals or other private sector businesses/business people (1) • Public sector businesses are usually run for the good of the population/basic needs (1) whereas private sector businesses have profit as one of their main objectives (1) • Public sector businesses will receive their funding from government (1) while private sector business will receive their funding from individuals/borrow the money from commercial enterprises (1) • Public sector businesses are accountable to the State/Government (1) whereas a private sector business are accountable through their owners (1) Accept any other relevant points.
3. [6] (b) Level 2 (4-6 marks) Has discussed whether or not multinationals benefit the countries in which they are located 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 a multinational locating in a country with/without an opinion • Multinationals provide employment for local workforce and train them. • They should pay taxes in the country. • They provide opportunities for other local companies to be suppliers. • They may help to improve infrastructure. • Their international sales may bring foreign exchange. • Some skilled workers are recruited from abroad. • They take advantage of cheap labour rates. • They transfer money to other subsidiaries to avoid tax. • They exploit the environment. • They may force local businesses out by taking their labour force and using overseas suppliers. • A reasoned decision is required, balancing some of the benefits and problems to reach a conclusion. Accept any other relevant points.
4. [4] (c) (i) 1 mark for making a decision (usually Yes, unless clear reasons showing rail is not the best way where No could be awarded) Up to a further 3 marks for explaining reasons, which can show why other forms of transport are rejected • Rail is suitable for bulk goods (1) because large quantities can be moved safely (1) • Rail is cheap/fast for long distances (1) • Rail is generally less polluting (1) and can carry heavy goods (1) • Rail needs transhipment (1) whereas road is door-to-door (1) • Rail needs considerable initial investment in infrastructure (1) such as track and mountainous areas can cause problems (1) • One alternative would be road transport, which is easier to start up (1) However, many trucks are needed for the same amount of coal as can be carried on one train (1) • Trucks will interfere with the local population/cause traffic congestion (1) and cause safety concerns on the roads (1) • Rail needs transhipment (1) whereas road is door-to-door (1) • Air is too expensive (1) bulky goods such as coal would not be carried (1) • Water transport by river and canal can be used, but suitable rivers must be available. Accept any other relevant points.
5. [4] (c) (ii) Up to 2 marks for each description of a service to a maximum of two services (Any 2 x 2 marks) • Pilots/tugs (1) to move ships/goods (1) • Cranes (1) to load/unload ships (1) • Terminals (1) with specialised equipment or e.g. cranes (1) to move containers (1) • Warehousing (1) store/keep goods (1) • Transport (1) connection to inland/road transport to move goods around seaport (1) • Dock labour (1) to load/unload ships (1) Note. No marks for customs. Accept any other relevant points.