The Peruvian government is under pressure from its industries to improve the country's transport system. Peru's third largest industry is tourism. There are many firms in the Peruvian tourism industry. Another major industry in Peru is fruit farming. In recent years, trade union membership in the Peruvian fruit-farming industry has increased.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2024). The mark or mark type is shown in brackets.

1. [1] tour guides;
2. [1] hotel manager / hotel worker;
3. [1] travel agent;
4. [1] flight attendant;
5. [1] coach / bus driver.
6. [1] Lower firms' costs of production; [1] cheaper to move goods/imports/exports / move goods/raw materials//imports/exports more efficiently / increase international competitiveness and so increase exports / higher income / increase size of markets / higher total demand.
7. [1] Reduce wastage; [1] food etc more likely to arrive fresh and so increase earnings for sale of e.g food / higher profits.
8. [1] Increase labour mobility / easier to get to work; [1] reduce unemployment / increase productivity.
9. [1] Less congestion; [1] less stress / less time lost.
10. [1] Increase (earnings from) tourism; [1] cheaper / easier to move around the country.
11. [1] Attract MNCs/FDI / increase investment; [1] increase employment / increase productive capacity.
12. [1] Fewer accidents; [1] avoid loss of workers / avoid loss of working hours.
13. [1] Less pollution; [1] healthier labour force.
14. [1] A competitive market has a large number of firms producing the product / no barriers to entry / substitutes available.
15. [1] Low prices; [1] as firms try to gain a larger share of the market / attract consumers / increase purchasing power.
16. [1] High quality; [1] as competition can increase efficiency / increase innovation.
17. [1] Choice; [1] different versions of the product may be produced / greater range of products / greater variety.
18. [1] Responsive to changes in consumer demand; [1] consumer sovereignty.
19. [1] Rise in wages and improved working conditions may increase productivity.
20. [1] Higher wages may increase total demand which may increase real GDP.
21. [1] Improved working conditions would increase living standards.
22. [1] By providing a channel of communication, it may reduce conflicts between workers and employers.
23. [1] By helping with training may raise output.
24. [1] Higher wages may increase inflation.
25. [1] May take industrial action e.g. strikes which could lower output / GDP.
26. [1] May resist job losses / introduction of new technology which may prevent increases in efficiency.