Fig. 4.1 shows a map of two countries, country X and country Y, and their two ports. Ferries operate between the two ports. [Figure 4.1] Use Fig. 4.1 to help you answer the following questions.
- (a)State one benefit of using ferries to transport freight between ports.[1]
- (b)Describe one service provided at ports for shipping companies.[2]
- (c)(i)Define quota.[1]
- (c)(ii)Do you think it is a good idea for a country to impose trade restrictions, such as quotas? Give reasons for your answer.[3]
- (d)Evaluate the benefits to country Y of joining a trading bloc.[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 (May/June 2024). The mark or mark type is shown in brackets.
- [1] (a) Speed/efficient/quick turnaround of vehicles/cargoes
- [1] (a) Ease of loading/unloading
- [1] (a) Can carry bulky goods/large quantities/heavy goods
- [1] (a) Can carry a variety of cargo
- [1] (a) Less handling / protects against theft / damage
- [1] (a) Cheap/fewer costs
- [2] (b) 1 mark for service and 1 mark for linked description
- [1] (b) Clear waterways/marked channels (1) providing safe access
- [1] (b) Tugs/pilots (1) to move ships
- [1] (b) Wharves/cranes (1) to load/unload cargo
- [1] (b) Container terminals (1) to handle containers coming into port
- [1] (b) Loading/unloading containers (1) to be taken off / put on ship
- [1] (b) Warehousing (1) for storage / safekeeping
- [1] (b) Bonded warehouses (1) controlled by customs / storage of dutiable goods
- [1] (b) Repair facilities (1) with wet/dry docks
- [1] (b) Fuel (1) to service vessels
- [1] (b) Transport infrastructure (1) for connections to road/rail links
- [1] (b) Parking area (1) for cars/trucks
- [1] (b) Security (1) e.g. dock police/fire service
- [1] (b) Customs (1) to collect duties / to prevent smuggling
- [1] (c)(i) A limit on the number of goods that are allowed to be imported into a country or exported out of a country / limit on imports / limit on exports
- [3] (c)(ii) Up to 3 marks for justified reasoning of yes and/or no responses.
- [1] (c)(ii) Yes - to prevent dumping of goods
- [1] (c)(ii) selling goods below cost in home market
- [1] (c)(ii) creating unfair competition
- [1] (c)(ii) To protect against unemployment
- [1] (c)(ii) from cheap imports
- [1] (c)(ii) To protect infant industries / local businesses
- [1] (c)(ii) which are not yet established
- [1] (c)(ii) so that they can grow / compete in the world market
- [1] (c)(ii) To gain revenue from tariffs
- [1] (c)(ii) which can be spent on infrastructure
- [1] (c)(ii) e.g. new roads/healthcare
- [1] (c)(ii) Can use embargoes
- [1] (c)(ii) to prevent the entry of harmful/dangerous/demerit goods
- [1] (c)(ii) such as guns
- [1] (c)(ii) Trade restrictions have a favourable effect on the balance of payments of the importing country
- [1] (c)(ii) they reduce imports and increase the export surplus
- [1] (c)(ii) so can improve a deficit in the balance of payments
- [1] (c)(ii) putting a country in a stronger financial position better economic growth
- [1] (c)(ii) No – Some countries without resources are unable to produce goods and services
- [1] (c)(ii) e.g. due to climate / lack of raw materials
- [1] (c)(ii) so have to depend entirely on imports
- [1] (c)(ii) International trade provides a wider variety of goods/services
- [1] (c)(ii) leading to more choice for consumers
- [1] (c)(ii) thereby improving their standard of living
- [1] (c)(ii) Helps to develop the economy
- [1] (c)(ii) with more jobs
- [1] (c)(ii) less unemployed
- [1] (c)(ii) May lead to retaliation
- [1] (c)(ii) bad relations
- [1] (c)(ii) by a country imposing taxes on another country's exports
- [6] (d) Up to 2 marks for describing benefits to Country Y of joining a trading bloc
- [6] (d) Up to a further 2 marks for analysing benefits to Country Y of joining a trading bloc
- [6] (d) Up to a final 2 marks for evaluating benefits to Country Y of joining a trading bloc
- [6] (d) A trade bloc is a group of countries joined together through a trade agreement.
- [6] (d) Increased trade / economic growth with access to larger markets
- [6] (d) Wider choice / better quality of goods for consumers by obtaining goods not locally available / goods move freely between member countries
- [6] (d) No tariffs so there is free trade
- [6] (d) Competitive/cheaper prices as Country Y can take advantage of cheaper raw materials
- [6] (d) Economies of scale with mass production / free movement of goods
- [6] (d) More jobs with free movement of labour / increased GDP / opportunity to set up factories in other member countries
- [6] (d) Standardisation of measures/documents (possibly currency) making it easier to sell to other countries
- [6] (d) Travel costs may be reduced with less bureaucracy / same currency
- [6] (d) Financial aid e.g. for infrastructure projects / areas of poverty
- [6] (d) Improves political relationships leading to peace between nations
- [6] (d) Foreign investment may increase standard of living / level of employment
- [6] (d) Evaluation: Trading blocs have many advantages in enabling free trade between geographically close countries. This can lead to lower prices, increased export potential, higher growth, economies of scale and greater competition. However, these advantages can be outweighed by losing some political sovereignty. Also, the move to free trade tends to create winners and losers, with some domestic industries losing out to lower-cost imports. Country Y will have to decide if the advantages outweigh the disadvantages.
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