EJC H1 Prelim 2024 QP

EUNOIAJUNIORCOLLEGEJC2PreliminaryExamination2024GeneralCertificateofEducationAdvancedLevelHigher1 ECONOMICSPaper1 8843/01 26August20243hours AdditionalMaterials:AnswerBooklet READTHESEINSTRUCTIONSFIRST Ananswerbookletwillbeprovidedwiththisquestionpaper.Youshouldfollowtheinstructionsonthefrontcoverof theanswerbooklet.If youneedadditionalanswerpaper, asktheinvigilatorforacontinuationbooklet. Answerallquestions. Thenumberofmarksisgiveninbrackets[ ] attheendofeachquestionorpartquestion. Thisdocumentconsistsof 7printedpagesand1blankpage. [Turnover

2 Question1: TowardsSustainableFashion Table1: Worldcottonproductionandconsumption(inmillionbales) Year Production Consumption2021 115 1182022 120 110 Source: USDAForeignAgricultural service, accessed30July2024 Extract 1: CottonpricestumbleasBrazil’sexportssurge Lowprices for corn have pushed farmers in Brazil to plant cotton instead of asecondcorncrop,resultinginasharpriseinproduction. Inrecent years,Brazil overtooktheUSastheworld’slargestcotton exporter. The South American country exported 12.4 million bales in the 2023-24 harvestseasoncomparedwith11.8millionbalesthatcameoutoftheUS,accordingtoestimatesbytheUSDepartmentofAgriculture.Australia,theworld’sthird-biggestexporter,shipped5.8millionbales. Brazil’s soaring output has morethanoffset theimpact of consecutiveyearsof drought intheUS.Meanwhile, global demand for cotton has fallen. Over the past few years, shoppers haveincreasingly opted for alternative fabrics like polyester and other man-made petroleum-basedfabrics, which are cheaper and quicker toproducethantoharvest cotton, but haveamuchlargerenvironmental toll. Source: Financial Times, 16July2024 Extract 2: Unfavourableplight of cottonfarmers Cotton has beenthemost consumedfibreinthetextileindustryuntil 2002whereit wasovertakenbypolyester.Cottonfarmingprovidesdirectlivelihoodsfor100millionhouseholdsin75countries,ofwhich 90%are located in lower-income countries. Anadditional 350millionpeoplesupport cottonfarming and basic processing by providing labour, transportation, ginning, baling, and storage.Cotton farming is essential totheglobal textilesector whichemploysaround25millionpeople, asabouthalfofall textilesaremadeofcotton. Farmers are at theendof alongandcomplexvaluechain, oftenreceivingthelowest priceswhilebearing high production costs. They are generally at a disadvantage when it comes to pricenegotiationsbecausetheylackaccesstomarketinformation.Inaddition,manysmall-scalefarmersdonot belongtofarmer organizations, whichleavesthemlittlebargainingpowerorinfluenceonthepricesoffered. Cotton farmers receive a small share of the retail price of a garment, not exceeding 10%. Smallcotton farmers earn the least compared to large and medium-sized farmers in many producingcountries. Some advocates argue that programs supporting farmers, such as establishing aminimumsupportprice,aredesirableforfarmers. Source: 2023Global market report, Cottonpricesandsustainability, 10July2023 8843/01 [Turnover

3 Figure1: