2025 NYJC Paper 1

NANYANG JUNIOR COLLEGE 2025 JC2 Preliminary Examination H2 ECONOMICS Paper No: 9570/01 3rd September 2025 Time : 1400 – 1630 hrs Wednesday Duration : 2 hours 30 mins INSTRUCTIONS TO CANDIDATES Do not turn over this paper until you are told to do so. Write your name, class and the name of your Economics tutor in the space provided on the answer booklet. You are required to answer ALL questions. The number of marks is given in the brackets at the end of each part question. Write your answers on the answer booklet provided. If you use more than one answer booklet, slot the additional booklets into the first booklet. Please start each case study on a fresh page. You are advised to spend several minutes reading through the questions and data before you begin writing your answers.

2 JC2 H2 Economics 9570/01 There are 9 printed pages including this cover page. Answer all questions Question 1: Impact of Sustainable Fashion in Developing Economies Figure 1: Global Cotton Production and Consumption Extract 1: The Rise of Brazil’s Cotton Export Brazil’s cotton harvests have grown significantly over the past two decades, mirroring its emergence as a farming powerhouse. Brazil is the biggest exporter of soyabeans and coffee; and last year it surpassed the US as top shipper of corn. Low prices for c orn have pushed farmers to plant cotton instead of a second corn crop. Brazil’s soaring output has more than offset the impact of consecutive years of drought in the US forced growers, to abandon 6mn acres of crop which have knocked production there to 12.5mn bales in 2023 from 17.5mn two years earlier. Over the past few years shoppers have increasingly opted for polyester and other man-made petroleum-based fibres, which are cheaper and quicker to produce than cotton, but have a much larger environmental toll. Source: Financial Times, 16 July 2024 Extract 2: Cotton farmers globally faced an unfavorable plight Cotton farmers globally faced an unfavorable plight during the 2022 -2024 period due to a combination of factors impacting production and profitability. Drought and climate change led to decreased yields, while low global prices and rising production costs squeezed farmer's incomes. Additionally, pest and disease outbreaks, labor shortages, and market volatility further exacerbated their challenges. Many farmers have been relying on personal resources to cover operational costs, a practice that is unsustainable in the long term. The combination of these factors has placed immense

3 JC2 H2 Economics 9570/01 pressure on economic health and the livelihoods of cotton farmers. As such, some governments thus implement programs such as minimum support price to support farmers. Source: Department Of Agricultural & Applied Economics, University Of Georgia, 2024 Extract 3: Fast Fashion Pollution and Climate Change ‘Fast Fashion’ is a term used to define clothes that are mass-produced, with a limited lifespan as designs change quickly and are cheap to produce. Fashion and its supply chain processes emitted 10% of global greenhouse gas emissions - the third largest polluting industry, after food and construction. Developing countries bear the burden of these environmental impacts from fast fashion pollution, while developed countries do most of the consumption. Textile production occurs in developing countries due to cheap manufacturing and labour costs, and lax environmental regulations as compared to the developed countries. For example, the use of synthetic materials, like polyester, consists of plastic and releases a larger amount of carbon emissions than cotton. Plastic degrades at a slower rate in the ocean and it also creates a toxic substance when it degrades, which is h armful for marine life and marine ecosystems. These microplastics also end up in the human food chain, causing negative health effects. It is essential for the textile and fashion industry to mitigate its environmental impacts. Some have even called for governments to tax the industry to reflect the ‘true cost’ of fast fashion. Source: Adapted from Earth.org; 21st Feb 2022 Extract 4: The Call For New Paradigm For Developing Countries The fast fashion industry's immense water wastage and carbon footprint for developing countries demand a radical change of how we produce and consume clothing. We face the collective challenge of transitioning from the current fast fashion model to a more sustainable paradigm especially in developing countries. A key concept in this new paradigm is the circular economy. Instead of the traditional "take - make-dispose" linear model, a circular approach emphasizes repair, reuse, redistribution, upcycling, and recycling. Research shows that second-hand clothes trading has the potential to reduce carbon emissions by a staggering 90% and save 33% of water consumption. Another tool of the circular economy is responsible water management which includes strategies to restore freshwater and marine ecosystems in production regions, which can enhance resilience to climate change and protect communities. In order for this transition to be fair, to simply reduce demand from consumers is not enough when so many livelihoods are at stake – governments, retailers, and consumers in the developed countries need to support suppliers and workers in developing countries to switch to sustainable production. Global fashion brands have to invest in the transition, by leveraging the potential of renewable energy in the garment sector and diversifying into green industries and create jobs related to the repair, reuse, redistribution, upcycling, and recycling of garments. Other than ensuring parties responsible internalize the external costs of fast fashion, governments (both from developed and developing countries) are also responsible for providing the climate finance needed – such as using the proceeds from carbon taxes and emission trading to fund or subsidise clean energy projects – to help developing countries transition to clean energy and sustainable practices, while also incentivising alternative

4 JC2 H2 Economics 9570/01 sustainable livelihoods in the circular economy. This includes providing social protection and retraining for garment workers displaced by the shift away from the old paradigm. Source: Oxfam.org.uk; 9 Oct 2024 Extract 5: Trends Shaping Vietnam’s Textile and Apparel Sector Over the past two decades, Vietnam has solidified its position as a major force in global textile and apparel manufacturing to become one of the largest garment exporters in Asia. The country’s reputation continues to attract international buyers and stren gthens its position in the global supply chain. Some of the top trends shaping Vietnam’s textile and apparel sector in 2025: ● Eco-friendly manufacturing takes centre stage o Sustainability is now a critical business mandate. In 2025, Vietnam’s garment producers are ramping up green production through water -efficient dyeing, solar energy use, and closed -loop systems. Green factories attaining global certification standards are increasingly commonplace, signaling Vietnam’s dedication to responsible production practices. ● Stronger foreign direct investments and global partnerships o Trade pacts are opening new doors for collaboration and affirms Vietnam’s status as a foreign investment magnet. In 2025, foreign firms are not just outsourcing but partnering with Vietnamese manufacturers to enhance capabilities in innovation, quality control, and advanced technology adoption. Government incentives for eco - tech projects are further attracting strategic investors. ● Upskilling the workforce for the future o While cost -effective labour remains an advantage, automation is transforming workforc