Fig. 1 shows three extracts from newspapers relating to the supply of liquid natural gas (LNG). Australia to be Asia's main liquid natural gas supplier. New LNG project to create nearly 15000 jobs in Australia's primary industries. COUNTRY OUTPUT OF LNG Million tonnes per year Australia 60 Qatar 48 Indonesia 21 Nigeria 11 Russia 10 Total output 150 Multinational companies are very involved in developing the liquid natural gas industry in many countries. [Figure 1] Use the newspaper extracts shown in Fig. 1 to help you to answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2011). The mark or mark type is shown in brackets.

1. [2] (a) (i) 60/150 x 100 (1) = 40% (1) Own Figure Rule (OFR) applies. Award full marks for the correct answer without working.
2. [2] (ii) Any two points x 1 mark each: first stage of a production process; concerned with obtaining natural resources/raw materials; concerned with extraction; may be exhaustive or non-exhaustive; example such as farming, mining (not obtaining LNG). Any other relevant point.
3. [2] (iii) Any two points x 1 mark each or one well-explained point x 2 marks: dependent/relying upon one another; for raw materials/power/finished goods (any one example, including LNG project); as tend to specialise in one product. Any other relevant point.
4. [6] (b) Any six points x 1 mark each and up to 3 marks for explained reasons: some countries have more resources of raw materials than others + example; some countries have the climate for particular kinds of farming + example; some countries border the sea so are able to develop their fishing industry; some countries have cheap sources of labour needed for manufacturing; some countries have certain skills required for particular kinds of manufacturing; some countries are able to develop their manufacturing industries using raw materials and/or power either within the country or in neighbouring countries; some countries can offer cheap manufactured goods to other countries because of lower costs; some countries lack skills/knowledge/technology/machinery; some countries are developing so have little manufacturing. Any other relevant point.
5. [2] (c) (i) Any two points x 1 mark each or one well-explained point x 2 marks: a company that has its head office in one country and; outlets, factories, offices in many other countries; example. Any other relevant point.
6. [6] (ii) Level 2 (4-6 marks) Candidate has discussed how the involvement of multinational companies will be both a benefit and a threat to a country's economy and given a reasoned opinion. (A one-sided reasoned argument 4 marks max.) Multinational companies will bring expertise in the development of industries. They have the financial resources to develop very expensive projects. They are likely to bring in employees from other countries who will spend in the country's economy. They will employ large numbers of the country's workers and so will reduce unemployment. They are likely to offer them training and make them more skilled and employable. They will use the country's transport system and also buy in supplies from many businesses based in the country. On the other hand, multinational industries are likely to be very profitable. They will be taxed in the country, thus benefiting the economy, but much of the profit will be moved overseas for the benefit of the multinational. If a multinational business becomes unprofitable or demand falls, multinationals are likely to leave the country and this will mean a considerable loss of jobs. On balance, it is likely that the involvement of multinationals will benefit a country's economy. They will be selling their products or services to other countries and so benefit the country's balance of trade/payments. Level 1 (1-3 marks) Candidate has mentioned some advantages/disadvantages of multinationals and their involvement in a country and may/may not have given an opinion about whether they benefit or are a threat to the country's economy. Multinationals provide employment. They earn profits for the country and pay taxes. They may take some of the profits out of the country. Generally they benefit the country in which they are located.