GOP is an oil producer based in country X. It is a public corporation. GOP plans to build a 200km pipeline across the country using retained profits to pay for it. The pipeline will need planning permission from the Government. Environmental pressure groups are concerned. A spokesperson for GOP said: 'GOP's objectives are different to businesses in the private sector. This pipeline will create 2000 skilled construction jobs and reduce the need for other businesses to import oil.'

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

1. [2] (a) A business that is owned and controlled by the government/state
2. [1] (a) E.g. run by government/state
3. [1] (b) Low(er) unemployment/full employment/create jobs
4. [1] (b) Economic growth OR increase in GDP OR improve standards of living
5. [1] (b) Low inflation/price stability
6. [1] (b) Improve balance of payments
7. [2] (c) create negative publicity OR publish information OR write to newspaper [k] about the pipeline [app]
8. [2] (c) organise customer boycotts [k] of its oil [app]
9. [2] (c) demonstrations or protests OR rally opposition [k] against this public corporation [app]
10. [2] (c) lobby OR petition OR send letters to government [k] to prevent planning permission [app]
11. [1] (c) demand interview with company [k]
12. [1] (c) take legal actions [k]
13. [3] (d) May look to maximise profit [k] from its pipeline [app] whereas in public sector the objective may be social/to provide social welfare/to offer services/products for free or at a low price [an]
14. [3] (d) May look to increase market share [k] making it difficult for other businesses to survive [an] which could conflict with government economic objectives [app]
15. [3] (d) May look to increase revenue [k] for its oil [app] whereas the public sector may offer subsidised prices [an]
16. [3] (d) Protecting jobs may be more important in the public sector [k] whereas private sector firms may look to reduce costs [an]
17. [3] (e) Creates jobs [k] as 2000 jobs created [app] helping reduce unemployment [an]
18. [3] (e) Protect vital industry [k] reducing the number of imports [app] helping country become self-sufficient [an]
19. [1] (e) Could help develop infrastructure/build new roads [k]
20. [2] (e) Pollution [k] which is why pressure groups are concerned [app]
21. [3] (e) Uses up natural resources [k] as produce oil [app] meaning fewer resources available for future generations [an]
22. [2] (e) Could conflict or help Government with other objectives [k] as this is a public corporation [app]
23. [2] (e) Reduce the need for oil imports [k] so a positive balance of payments [an]
24. [2] (e) Justified decision made as to whether the Government should allow GOP to build the pipeline