Fig. 1.1 shows the percentage output of different types of production for country A and country B. Production | Country A % output | Country B % output ---|---|--- Primary | 70 | 15 Secondary | 20 | 25 Tertiary | 10 | 60 Total value of output | $800bn | $900bn Fig. 1.1 Use Fig. 1.1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2025). The mark or mark type is shown in brackets.

1. [1] Changing raw materials into finished/manufactured goods / raw materials are manufactured / goods made from primary production / is the manufacturing of goods / it is the second stage of production that includes manufacturing / construction
2. [2] Correct answer = $540bn or 540 000 000 000
3. [1] Method = 60 / 100 × 900
4. [2] Country A more focused/specialises in primary industry whereas country B more focused/specialises in tertiary industry
5. [2] Country A may have more investment by government in primary industry whereas country B has more investment in tertiary industry
6. [2] Country A may be rich in natural earth resources whereas county B has few natural earth resources
7. [2] Country A is extracting more raw materials than country B
8. [2] Country A has less developed services such as tourism whereas country B has developed commercial services
9. [2] Country B is economically developed whereas country A is less economically developed
10. [2] Country B has more advanced technology than country A
11. [2] Country B may have greater employment in the services sector whereas country A has less employment in tertiary production
12. [1] One reason might be more technology / land / labour / natural resources
13. [1] Lack of skilled workers
14. [1] Less raw materials in one country / raw materials vary
15. [1] Country B has a more educated workforce
16. [2] An effect of the exploitation of natural resources is pollution.
17. [2] Money spent by tourists benefits a country's invisible trade.
18. [1] Brokers bring buyers and sellers together / looks for a market
19. [1] whereas factors sell goods on behalf of their principals
20. [1] Brokers are responsible for the delivery of goods
21. [1] whereas factors do not buy goods for their principals
22. [1] Brokers do not have possession of the goods
23. [1] whereas factors have possession of the goods / collect payments
24. [1] Brokers cannot arrange contracts in their own names
25. [1] whereas factors can only deal with goods as if they were the owners / can sell/buy in their own name
26. [1] Brokers gain commission for their services
27. [1] whereas a factor can earn extra commission if acting as a del credere agent / can make a profit
28. [6] Up to 2 marks for describing containerisation/importers/supply chain
29. [6] Up to a further 2 marks for analysing the importance of containerisation in the supply chain
30. [6] Up to a final 2 marks for evaluating the importance of containerisation in the supply chain
31. Containerisation is an integrated/intermodal transport system that can be used on all types of transport using standard-sized metal containers that can be moved from one method of transport to another. Each container is assigned a unique BIC code for identification and tracking during its journey across the global supply chain. They are sealed fitted with locks. They act as warehouses and can be stacked out of doors.
32. The supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products which are later distributed to end customers.
33. Reduces costs by enabling economies of scale through use of large vehicles/ships / reduced handling. This makes importing a wider range of goods and results in lower consumer prices
34. Containers can be used to carry a wide variety/large amount of goods in the supply chain such as commodities (coal, wheat), manufactured goods, cars, and refrigerated (perishable) goods. This enables the importing of a wider range of goods globally resulting in lower consumer prices.
35. Container transportation offers lower transport costs due to the advantages of standardisation. Moving the same amount of break-bulk freight in a container is about 20 times less expensive than conventional means. Containers enable economies of scale using all transport mode terminals that were not possible through standard break-bulk handling.
36. Containers are sealed so this reduces the risk of damage/spoilage theft leading to lower insurance costs
37. Greater speed/efficiency in transferring containers between different methods of transport. Because of this transshipment advantage, transport chains involving containers are faster leading to customers receiving their goods through the supply chain more efficiently
38. The container is its own warehouse, protecting the cargo it contains. This results in less expensive packaging for containerised cargoes
39. The container contents are unknown to carriers since it can only be opened at the origin (seller/shipper), at customs, and the destination (buyer). This results in reduced damage/spoilage / theft
40. Standardised containers (e.g. 40 ft) have made international trade more accessible to all importers so that they expand where they source goods from
41. Evaluation: The container is just one of the main cogs in the entire logistics and supply chain process, but its job cannot be understated. It serves a valuable role in ensuring that goods are safely transported to global destinations so to meet consumer demand.