SAJC_H2_ECONS_P1_Case_Study_QP

1 ST. ANDREW’S JUNIOR COLLEGE PRELIMINARY EXAMINATIONS – 2018 (JC2) General Certificate of Education Advanced Level Higher 2 ECONOMICS Paper 1 Additional Materials: Answer Paper 9757/01 27 August 2018 2 hours 15 minutes READ THESE INSTRUCTIONS FIRST Write your name and class on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Answer all questions. Start Question 1 and 2 on a fresh sheet of paper. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 7 printed pages and 1 blank page. © SAJC 2018 [Turn Over]

2 Answer all questions Question 1: Steel Industry in India Table 1: World Steel Output and Consumption (million tonnes) 2014 2015 2016 2017 Output 1,669 1,620 1,627 1,689 Consumption 1,546 1,500 1,516 1,587 Source: World Steel Association Figure 1: World Steel Prices (USD/tonne) Figure 2: Key Steel Producers in India Source: Tradingeconomics.com

3 Extract 1 Steel industry gets protection India’s Steel Minister Narendra Singh Tomar said that additional steps will be taken to protect domestic steel industry, which is facing a bad patch, in wake of cheap Chinese imported steel. “China was trying to dump its cheap steel in India and as a result of it, the domestic steel industry was in distress. To protest domestic industry, we enhanced import duty and imposed safeguard duty. But these steps were not enough and we will be taking additional steps in this regard”, said Tomar. Steel ministry along with the Finance and Commerce ministries are engaged in a dialogue to work out the steps that need to be taken for protecting domestic steel industry in the near future, according to media reports. “China is offering steel at half price compared to domestic industry in India. The way China is working, it appears (that) an economic war was on,” he said. Giving relief to domestic steel producers against cheap in-bound shipments, the government on Friday imposed a minimum import price (MIP) on 173 steel products ranging between $341 and $752 per tonne. The minimum price will remain in place for six months only. The Minister further said state-run steel production centres are being expanded and modernised and four new steel plants were being set up in Jharkhand, Odisha, Chhattisgarh and Karnataka. Source: realtyplusmag.com, 01 Feb 2016, www.thehindubusinessline.com, 05 Feb 2016 Extract 2: 'Iron and steel industries are economy's backbone' NAGPUR: Iron ore and steel industry is one of the