Fig. 3.1 shows the value of a country's total imports and exports for 2023–2024. 80.00 70.00 60.00 $ Billion 40.00 30.00 20.00 10.00 0.00 65.65 52.46 2023 Exports 69.33 58.22 2024 Imports Fig. 3.1 Use Fig. 3.1 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] Increase in imports / higher imports / more imports
2. [1] Increase in exports / higher exports / more exports
3. [1] Increase in both imports and exports
4. [1] Imports are greater than exports
5. [1] Both years have a trade deficit
6. [2] Correct answer = - $13.19 Bn / $13.19 deficit (2) Method = $52.46 Bn - $65.65 Bn (1)
7. [1] Yes – exports provide income to a country; increasing its gross domestic product/national income / strong currency
8. [1] helping to develop/increase/improve/boost the economy / economic growth
9. [1] helping local industries/business / to expand / improving infrastructure or example
10. [1] improving the standard of living; helps to develop the economy with more jobs / less unemployed
11. [1] bring foreign currency into the country / cash inflow / more income/revenue
12. [1] leading to positive balance of payments / avoids balance of trade/payments deficit /maintains balance between exports and imports
13. [1] No – imports are essential for a country's economy; helps/boosts local businesses / to innovate / compete
14. [1] provides goods that cannot be produced in own country / due to climate / lack of raw materials
15. [1] imports may be cheaper/competitive prices / of better quality
16. [1] provides new/variety of goods / more choice for consumers
17. [1] without them people would have lower living standards / improves living standards
18. [1] benefits of comparative advantage / example / allowing for international specialisation
19. [1] increases friendship between countries / less chance of wars
20. [1] Export merchants are intermediaries/middleman in international trade
21. [1] they act principals
22. [1] they buy the goods for themselves in their own country
23. [1] they own the goods
24. [1] look for buyers in other countries
25. [1] storing goods/managing logistics/delivery/transport/shipping/customs clearance/documentation/paperwork
26. [1] sell the goods / sell to other countries
27. [1] in their own name
28. [1] and make profits
29. [1] Enables buying and selling to happen more efficiently so that global deals are made more quickly
30. [1] Enables businesses to react quickly to changing market conditions/resolve issues
31. [1] Enables documents to be speedily written and transmitted so that contracts can be completed
32. [1] Many businesses rely on speedy delivery of supplies to carry out production in supply chains
33. [1] Enables information about goods/services to be readily available, e.g. via websites, so international traders can easily see what is available in real time
34. [1] Rapid communication quickly opens up new markets making it easier to connect with new customers
35. [1] Advances in communication technology, e.g. smartphones and video conferencing, allow customers to talk/see each other /discuss their products/orders/report faults/deliveries instantly, without wasting time and money travelling
36. Evaluation: Overall, rapid communication acts as the connecting link of global commerce ensuring the smooth and efficient movement of goods and services across borders. So, it is very important as it has increased the speed of commercial activities across global markets. It has allowed businesses and consumers to carry out transactions more efficiently.