Fig. 3.1 shows some Balance of Payments data for country A in 2022. Country A's main exports are copper, oil and tourism. Its main imports are clothing, insurance and plastic waste. [Figure 3.1] Use Fig. 3.1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. [4] 1 mark for each definition plus 1 mark for each example • Visible trade is the trade in goods / tangibles (1) e.g. copper / oil / clothing / plastic waste (1) • Invisible trade is the trade in services / non-tangibles (1) e.g. tourism / insurance (1)
2. [3] Award full marks for the correct answer without working Correct answer -$245m (3) Figures $1185m and £1430m (2) Figures 750 + 435 and 850 + 580 (1)
3. [2] 1 reason plus explanation to a maximum of 2 marks • There is a deficit (1) which means the country is importing more than it is exporting (1) therefore not enough goods / services sold abroad to pay for imports / spending more than it is earning (1) leading to less economic growth / unemployment (1) pressure on exchange rates (1)
4. [2] Any 1 effect and explanation to a maximum of 2 marks • Pollution / air pollution (1) due to increase of carbon emissions (1) not environmentally friendly (1) • Emits hazardous gases / difficult to decompose (1) as plastic waste is placed in landfill / not recycled (1) • Can lessen the growth of plants (1) by blocking the absorption of minerals / water (1) • Can contaminate fish life / animals die from ingesting plastic (1) from plastic waste dumped in water (1) • Causes flooding (1) from plastic waste clogging up drains (1) • Can affect health (1) from drinking pollutants in water (1) • Less visual appealing (1) reducing tourism (1) • Land pollution (1) from litter (1)
5. [8] Level Mark Description 3 7-8 The candidate is able to offer a recommendation with a thorough evaluation of the two methods of communication for importers to use. 2 5-6 Candidate offers a satisfactory analysis of the use of one or two methods of communication for importers to use. 1 1-4 Candidate demonstrates some knowledge and understanding of email and videoconferencing with application to importers. 0 0 No creditable response. Email is a system used for creating, sending / receiving and storing data in a digital format over a network of computers. Videoconferencing is a system of linking people in different locations with sound and vision. Advantages of using email: • Cheap - sending an email costs the same regardless of distance and the number of people you send it to – reduces shipping and postage costs. • Fast - an email should reach its recipient in minutes so that an issue is known and can be acted upon. • Convenient - the message will be stored until the recipient is ready to read it, and the same message can be sent to a large number of people. • Permanent can keep a record of messages and replies, including details of when a message was received. Disadvantages of using email: • Impersonal - Email can be quicker than a videoconferencing conversation but it does not have as much of a personal connection. Written text does not always convey what the writer intends; meanings can be misinterpreted, as the recipient of the message does not have the advantage of seeing facial expressions and body language. • Viruses - easily spread through email attachments and it's possible that others could gain access to them or receive them by mistake. An email can be intercepted by a hacker or go to an incorrect email address and wind up in someone else's inbox. • Data storage – electronic storing space can become a problem, particularly where emails with large attachments are widely distributed. Spam - unsolicited email can overwhelm the email system. Advantages of using videoconferencing: • Cheap - can save on travel costs, travel time and meeting room costs. • No time limits – meetings can be called at short notice. • Productivity – the meeting is likely to be shorter and participants can then go back to work. • Body language – facial expressions can be seen and acted upon. Disadvantages of using videoconferencing: • Less personal – it is difficult to build strong relationships and get to know the participants compared to a face-to-face meeting. • Time zones - May be inconvenient for people in different time zones e.g. Australia and USA. • Contracts - confidential documents may still need to be signed in person. • Technical glitches – Technical problems with hardware / issues of sound quality / audio delay response. • Visibility - Entire room may not be visible if there are a large number of people at one location. Evaluation: Communicating various details about a consignment and its shipping specifications is a major part of importing. Importers need to make sure that exporters understand each other when making decisions regarding delivery, the costs involved and freight insurance. Answering complex questions via email can be time-consuming. It would be more effective to use videoconferencing as is as good as being there in a meeting room.