CXC geo 2015Question 6

Economic Development

Define the term secondary industry and give one example of a secondary industry that you have studied. 3marks• Secondary industries are those industries which process, refine,

assemble or transform raw material in some way into more valuable products. Example garment manufacturing.

State three ways by which countries can benefit from the development of secondary industries. 3 marks• Provide jobs for low skilled labour

• Earn more foreign exchange than when raw materials are exported

• Local manufacturing reduces imports and increases exports.

State two economic factors which may influence the location of a secondary economic activity. 2 marks• Cost of labour ( compared to other countries)

• Economic incentives from governments (such as exemption from tax duty)

Explain three policies that government may use to promote sustainable development in primary economic activities. 6 marks• Zoning of forests, and enforcement of laws to prevent overharvesting

of timber or clear cutting.

• Create a closed (no harvest) season for certain marine life such as conch and lobster during the months when most breeding takes place, so that the stock can replenish itself each year.

• Prohibit the sale of conch and lobster below a certain size so that they are given a chance to mature.

Explain three challenges faced by one of the following activities in a Caribbean country. Fishing. Forestry. Mining. 6 marks• Fishing in Belize

• Competition from international factory fishing ships. It is hard to control the presence of theses foreign ships which use satellite and sonar equipment to overharvest fish and deplete the stock.

• The species most valuable commercial species for export such as marlin, grouper and some types of tuna are threatened by extinction due to overfishing.

• While shrimp export is very profitable in Belize, shrimp trawling is indiscriminate and catches too many young fish, often up to six times the weight of the shrimp harvested.

Define the term economic activity 2 marks

• Actions that involve the production, distribution and consumption of goods and services at all levels within a society.

For one type of economic activity you have studied, describe three changes that have taken place. 6 marks• Agriculture

• Preferential trade agreements with the UK and Europe were cancelled and commercial sugar and bananas became unprofitable.

• Employment in agriculture has fallen dramatically due to trade liberalization causing loss of markets for products and increased mechanization of agriculture.

• Agriculture is no longer the largest or most important contributor to GDP. Residential, manufacturing and tourism uses now compete for prime agricultural land.

Explain three challenges faced by two types of economic activity in the Caribbean. 12 marks

• Fishing

• Overfishing of major commercial species particularly grouper has severely damaged the fish stock in Belize

• Shrimp trawling is highly profitable but, it can catch as many as 6kg of young unwanted fish for every 1kg of shrimp. This means less fish will mature to commercial size.

• It is difficult to control foreign owned factory ships from Aisia which compete for Caribbean fish stock. The ships use satellite and sonar equipment to find and gather fish in an unsustainable way.

Agriculture challenges

• Prime agricultural land now under intense competition by other land uses such as manufacturing, tourist accommodation and residential development.

• Preferential trade agreements with Europe that previously made banana and sugar cultivation profitable were cancelled due to trade liberalization. Most of the Caribbean’s agricultural products cannot compete on world markets.

• Agriculture is also seeing a shortage of labour supply in the Caribbean, since most young people prefer to work in tourism, services or other industries even when agricultural work is available.

Name and give an example of two type of economic activities in the Caribbean 2marks• Primary economic activity e.g. agriculture

• Secondary economic activity e.g. food processing

For a named Caribbean country, describe two factors which influence the location of a specific type of economic activity. 6 marks• In Belize the fishing industry has been located there because

• There is a 280 km long barrier reef where living coral, fish and crustaceans thrive. The coral reefs, mangroves and sea grass beds provide food and shelter for a large variety and huge numbers of fish. This makes Belize's fishing grounds productive in deep and shallow water.

• In many locations communities are organized for commercial fishing. 60 % of fishers belong to well run co-operatives which allow more sustainable management of marine stock and maintain profitability for Belize.

With reference to a named Caribbean Country, explain how the tourism industry has been affected by the recent global recession. Include Three points in your answer. 6 marks

• Stay over tourist decreased by 25 % or more in some Caribbean areas. This decreases profit for small business and local hotel industries.

• The proportion of tourist choosing cruise ship vacations has increased while the proportion of stay over visitors is decreasing. Stay over visitors spend much more in a country than cruise ship visitors, because food lodging and entertainment is catered for n the ship.

• In light of the recession, north American consumers are choosing packaged tours in all inclusive resorts because the entire cost of trip can be planned ahead of time.

Explain three challenges faced by either mining or fishing or forestry in a named Caribbean country. 6 marks• Fishing Belize

• Overfishing of crustaceans.

• Shrimp trawling damage

• Competing fishing factry ships and shrimp farms

Describe four ways in which the food processing industry is important in the Caribbean. 8 marks

• Low skilled employment

• Increase value of agricultural exports e.g.. Caribbean fish frozen products catch higher price, Trinidad chocolate as oppose to cocoa

• Food processing decreases the import bill, e.g. cheaper raw materials are imported and made into high value items like breakfast cereals and soft drinks.

• Export processing zones help to industrialize the islands

Name and give an example of TWO types of economic activities in the Caribbean. 2 marks• Primary economic activity-farming/agriculture

• Secondary economic activity- food processing

For a named Caribbean country, describe TWO factors which influence the location of a specific type of economic activity. 6 marksIn Belize the fishing industry is located along much of its coast.

This economic activity is highly profitable in Belize because of the presence of a 280 km long barrier reef which acts as a spawning ground and protection for young fish as well as habitat for conch, lobster and shrimp.

Government policies have promoted aquaculture along its flat coastal plains as a means of increasing production after harvest fell due to unsustainable harvesting. Now there are 28 square km of shrimp farms along the coast.

For the economic activity identified in b) ii explain two challenges it faces 4 marks• There is competition from Asian shrimp farms which produce cheaper

products and Foreign factory ships which use sonar and satellite equipment to overfish the stock off the coast of Belize.

• Shrimp trawling damages the sea bed and catches and excess of young fish before they get time to mature to commercial size.

For a named Caribbean country, describe TWO factors which influence the location of a specific type of economic activity. 6 marks• In Trinidad, the secondary economic activity of methanol production

is located at Point Lisas.

• Seven methanol plants are located in Point Lisas because natural gas is extracted in southern Trinidad and a component of natural gas forms the major raw material for methanol production. (Methanol is a liquid and is much easier to transport than natural gas, so the manufacturing is located nearest the source of gas.)

• The coastal site it is placed on is influenced by the need for a deep water port which the chemical tankers use to ship liquid methanol to north America and Europe.

http://www.energy.gov.tt/our-business/lng-petrochemicals/petrochemicals/methanol/

Alternative

answer

Can you see the straight pipes from the plant to deep water?

Your text here

For the economic activity identified in b) ii explain two challenges it faces 4 marks• The raw material Natural Gas is a non renewable resource, which may

run out or decrease in production in the near future

• There is ongoing pressure from the world governing bodies to reduce the use of fossil fuels and decrease output of carbon dioxide from sources such as methanol

For either food processing or garment manufacturing, explain how the development of the industry in both a named Caribbean country and either Singapore or Hong Kong is influenced by any two of the follow: Labour, Raw materials, Market. 8 marks.

• In Hong Kong labour is relatively cheap, especially in the past when the industry was developing and this lead to cheap easily marketed products. Labour in Trinidad by contrast is extremely expensive since wages are high relative to other countries. The influence of high wages on the garment industry in Trinidad has led to a shrinking of the industry overtime to niche markets such as tailored, professional office wear for banks etc.

• In Hong Kong access to UK and European markets had lead to vast expansion and growth in garment industry until 2005 when China’s cheaper garments were allowed to compete for these markets on an equal footing. As Hong Kong’s market share declined the industry growth began to stagnate. In Trinidad and Tobago the niche markets are restricted so the garment industry has been redirected towards international luxery markets via high value fashion design such as Meiling and Claudia Pegus designs.

Fishing in Belize

• Challenges

• Sustainability

• Location of

• Story

Belize’s story• They have a barrier reef

• And that gives them a lot of fish

• And a large percentage of their GDP

• But Grouper was overfished

• Conch too

• Over 60% in these large cool cooperatives,

• they manage, buy, sell, process and negotiate prices.

• But

• Shrimp trawling hurts young fish

• So 28km squared shrimp farm

• Closed season for lobster

• Ban on grouper

• Bans below a certain size

• Marine heritage parks

• Still can’t fight factory ships.

Garment Construction

• Hong Kong

• Cheap labour

• Stable government, strong economy

• Previous preferential access to Europe (was part of UK)

• Since 2005 outcompeted by when markets opened up China.

• Trinidad

• Most of the garment industry closed down, moved to countries with lower wages decades ago.

• Niche market only now: Janoora’sCustom made work uniforms & York T shirts

• Was always outcompeted in main markets.

• Competes in fashion industry instead.