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O-LevelCommerceProduction7100/22 · Oct/Nov 2019 · Q118 Marks

Fig. 1.1 shows the pattern of a trading bloc's exports and imports of mining production. exports Canada 4% China 4% Israel 11% South-east Asia 28% United States 26% Rest of the World 27% imports Saudi Arabia 5% Iran 4% Libya 7% Norway 13% Russian Federation 24% Rest of the World ? Fig. 1.1 exports and imports of mining production Use Fig. 1.1 to help you answer the following questions.

  1. (a)(i)In which type of industry would mining be classified?[1]
  2. (a)(ii)Identify the main area to which this trading bloc exports its mining production.[1]
  3. (b)Calculate the percentage of mining goods imported from the Rest of the World in Fig. 1.1.[2]
  4. (c)Explain two advantages to a country of joining a trading bloc.[4]
  5. (d)Circle the correct answer to complete each of the following sentences. A tariff is a tax on exported goods OR imported goods. A mass rapid transport system (MRT) is part of rail transport OR road transport.[2]
  6. (e)Describe one method of electronic communication used in international trade.[2]
  7. (f)Coal is often transported by ship. To what extent is this the best way of moving coal? Give reasons for your answer.[6]

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

  1. [1] Primary/extractive/exhaustive
  2. [1] South-east Asia
  3. [2] Correct answer 47% (2)
  4. [1] Working 100 - 53 or 100-4-5-7-13-24 (1)
  5. [1] Increased trade / economic growth
  6. [1] access to larger markets
  7. [1] Wider choice / better quality of goods for consumers
  8. [1] obtain goods not locally available / goods move freely from member countries
  9. [1] No tariffs
  10. [1] free trade
  11. [1] Competitive/cheaper prices
  12. [1] take advantage of cheaper raw materials
  13. [1] Economies of scale
  14. [1] mass production / free movement of goods
  15. [1] More jobs
  16. [1] with free movement of labour / increased GDP / opportunity to set up factories in other member countries
  17. [1] Standardisation of measures/documents (possibly currency)
  18. [1] making it easier to sell to other countries
  19. [1] Travel costs may be reduced
  20. [1] less bureaucracy / same currency
  21. [1] Financial aid
  22. [1] e.g. for infrastructure projects / areas of poverty
  23. [1] Improve relationships
  24. [1] improve peace between nations
  25. [1] Foreign investment
  26. [1] may increase standard of living / level of employment
  27. [1] A tariff is a tax on imported goods
  28. [1] A mass rapid transport system (MRT) is part of rail transport
  29. [1] Teleconferencing
  30. [1] people linked by voice in distant locations
  31. [1] Videoconferencing
  32. [1] people linked by voice and vision in distant locations
  33. [1] Fax
  34. [1] to send a copy of a document
  35. [1] Email
  36. [1] written message sent via internet
  37. [1] Telephone/mobile phone/smartphone
  38. [1] Verbal/can discuss/access internet
  39. [1] Social media
  40. [1] website/apps/e.g. twitter allows users to see/make posts
  41. [1] Text message
  42. [1] usually sent between mobile phones
  43. [1] Bank/online transfer
  44. [1] to make/receive payment
  45. [1] Internet
  46. [1] use of websites
  47. [6] Up to 2 marks for describing coal being transported by ship
  48. [2] Sea transport by ship is a cheap way of carrying low value bulky goods such as coal over long distances. If large ships are used to carry coal the unit cost per tonne of coal transported is very low. Ships and barges have access to many parts of the world, travelling from port to port, loading and offloading coal. Ships can be delayed by weather. The documentation is complex for sea transport.
  49. [2] Up to a further 2 marks for analysing sea transport with other types of transport
  50. [2] Rail can be used to move large quantities of coal and is cheap/fast for long distances. Rail is generally less polluting than ship. However, both require transhipment whereas road transport can be door-to-door. Many trucks would be needed to carry the same amount of coal as can be carried on one train or ship. Trucks can cause traffic congestion and cause safety concerns on the roads. Rail, road and canal/river transport require infrastructure to operate.
  51. [0] Air transport is too expensive for bulky/heavy goods like coal.
  52. [2] Up to a final 2 marks for evaluating the extent to which transport by ship is the best way of moving coal
  53. [2] Evaluation example: If transport is needed close to the coal mine then road or rail transport are fine, but for longer distances either ship or rail would be better. It depends on where the coal is being moved to/from. If there is easy access to a seaport then some form of sea transport would be best, but between land-locked countries rail might be a more environmentally friendly option than road.

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About this question

Topic
Production, O-Level Commerce (syllabus 7100). Structured question, 18 marks.
Source
O-Level Commerce, Oct/Nov 2019 Paper 2 Variant 2, question 1.

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