Davos is a ski resort in Switzerland famous for hosting a world economic conference for leaders from both private and public sectors. Topics discussed usually relate to global economic development. Hospitality firms in Davos depend on seasonal migrant labour, especially when they want to increase the supply of goods and services quickly.

Mark scheme

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

1. [1] The willingness.
2. [1] And ability to sell/provide a good/service.
3. [2] The private sector is operated and owned by individuals / firms, and its decisions are made based on self-interest / profits / own utility / efficiency.
4. [2] The public sector is operated and owned by the government, and its decisions are made based on the overall welfare of society / people / externalities.
5. [2] Differences in economic development between countries can be caused by varying levels of income, affecting affordability and consumption of goods and services.
6. [2] Differences in education levels impact skills / productivity, job opportunities, and purchasing power.
7. [2] Differences in healthcare affect life expectancy, labour absences from work, and overall output.
8. [2] Differences in population growth rates influence the size of the workforce, dependency ratios, and the cost of labour.
9. [2] The size of primary, secondary, and tertiary sectors also contributes; a large primary sector typically leads to lower levels of development compared to economies with larger secondary and tertiary sectors due to lower value added.
10. [2] Differences in government expenditure / overseas investment (FDI) (e.g., in infrastructure projects, education, or healthcare) can raise job opportunities and reduce poverty.
11. [2] Variations in the availability / development of resources / factors of production (e.g., natural landscapes, skilled labour) impact economic development.
12. [1] The employment of migrant workers can benefit an economy by increasing the supply of labour.
13. [1] This can reduce wage costs for firms.
14. [1] It increases the quantity of factors of production available in the economy.
15. [1] It can increase the productive capacity of the economy and promote economic growth.
16. [1] Migrant workers may be more skilled.
17. [1] They may be more productive.
18. [1] They often take up jobs that local workers do not want to take up.
19. [1] Income received by migrant workers may create new jobs through their spending.
20. [1] However, the employment of migrant workers might not benefit an economy by increasing unemployment among local workers, as they may take jobs from them.
21. [1] Migrant workers are often willing to take jobs at lower pay than local labour, which can lead to lowering wage rates for all workers.
22. [1] A large influx of migrant workers might mean the economy does not have the capacity to accommodate them, leading to a lack of housing and other infrastructure.