EJC 2023 JC2 H2 Econs Prelim P1 Suggested answers_for sharing

[Turn over EUNOIA JUNIOR COLLEGE JC2 Preliminary Examination 2023 General Certificate of Education Advanced Level Higher 2 ECONOMICS Paper 1 9570/01 30 August 2023 2 hours 30 minutes Additional Materials: Answer Booklet READ THESE INSTRUCTIONS FIRST An answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional answer paper ask the invigilator for a continuation booklet. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. Please note that Paper 1 takes up 40% of the total score.

2 9570/01 [Turn over This document consists of 8 printed pages. Answer all questions Question 1: Developments in the maritime industry Figure 1: Global container freight rate, January 2019 to July 2022 (in U.S. dollars) Source: Statista, July 2023 Extract 1: Suez Canal set to be blocked for weeks by stranded ship The blockage of the Suez Canal is wreaking havoc in the global seaborne trade. About 12 per cent of global trade goes through The Suez Canal, which is one of the world's busiest shipping channels for oil and refined fuels, grain and other trade linking Asia and Europe. The blocking of the waterway is creating another setback for global supply chains already strained by the e-commerce boom linked to the COVID-19 pandemic. “A global shortage of con tainer capacity and low service reliability from global container shipping companies... has made supply chains highly vulnerable to even the smallest of external shocks,” analysts from Moody’s Investors Service said. On Thursday, 238 vessels were queued up. It's tough to come up with a single figure for how much the epic traffic jam in the canal is costing. The cost to ship a 40-foot container from China to Europe has climbed to about US$8,000, almost quadruple the figure a year ago. Two liquefied natural gas tankers bound for Asian markets appear to have changed course and are now making the long trip around Africa to avoid gri dlock in the Suez waterway. Hapag-Lloyd is considering sending ships along the same route. Tor m A/S, a Danish owner of tankers, said its customers have asked about the cost of options to divert. "The longer the Canal is closed, the larger the queue of vessels that will be caught up in jams and the bigger the losses for shipping and, ultimately, consumers of the goods which we transport," he said. Source: The Straits Times , 26 March 202

3 9570/01 [Turn over Extract 2: Hapag-Lloyd acquires Africa carrier NileDutch Hapag-Lloyd successfully closed the acquisition of the Dutch container shipping company Nile Dutch Investments B.V. (NileDutch) after antitrust authorities approved the transaction. “With