YJC_H1_ECONS_P1_QP

1 YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATIONS 2017 H1 ECONOMICS 8819/01 PAPER 1 23 AUGUST 2017 0800 – 1100 hrs TIME 3 hours Additional materials: Writing papers, cover pages INSTRUCTIONS TO CANDIDATES Write your name and CTG on all the work you hand in. Write in dark blue or black pen. You may use a soft pencil for any diagrams, graphs or rough working. Do not use highlighters, glue or correction fluid. Answer questions 1, 2, and either 3 or 4 . Start a new question on a fresh piece of paper. At the end of the examinations, fasten all your work securely together. Tie a cover page to three separate questions: 1. Case Study Question 1, 2. Case Study Question 2, and 3. Either Essay Question 3 or 4. The number of marks is given in brackets [ ] at the end of each question or part question. You are reminded of the need for good English and clear presentation in your answers. This paper consists of 8 printed pages, including this cover page

2 Section A Answer all questions in this section. Question 1 The Market for Steel Figure 1: World price of steel Source: Bloomberg Extract 1: Global steel demand set to fall again in 2016: Worldsteel Global steel demand will continue to fall this year before a slight pick-up in 2017, the World Steel Association forecast on Wednesday. Falling demand has plunged the global steel market into crisis, with excess capacity taking a heavy toll on producers, including those in China - leading to plant closures and job losses. Global apparent steel use - deliveries minus net exports of steel industry goods - is expected to fall 0.8 percent in 2016 to 1.488 billion tonnes after a 3 percent fall last year, according to Worldsteel. China, which produces about half the world's steel, is under increasing international pressure to tackle a local supply glut that has led to accusations of China flooding markets with cheap steel. However, China is reluctant to do so as cutting industrial capacity will force China to lay off probably 1.8 million workers from steel and related sectors. "The key to this year's figure is the de