RI_H2_ECON_P1

9732/01/Prelim/Yr6/11 © RI 2011 [Turn over RAFFLES INSTITUTION 2011 YEAR 6 PRELIMINARY EXAMINATION Higher 2 ECONOMICS 9732/01 Paper 1 Case Studies 1 September 2011 2 hours 15 minutes Additional Materials: Answer Paper READ THESE INSTRUCTIONS FIRST Write your name, index number and CT 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 diagrams, graphs or rough working. Do not use paper clips, highlighters, glue or correction fluid. Answer all questions. The number of marks is given in brackets [ ] at the end of each part question. Begin answering each question on a fresh sheet of answer paper. At the end of the examination, fasten your answer to each question separately. Attach this cover sheet to your answer for Question 1. Cover Sheet This document consists of 9 printed pages and 3 blank pages. Question No. Marks 1 /30 H Raffles Institution Nurturing the Thinker, Leader & Pioneer Name : ________________________ Civics Class : ________________________ Economics Tutor : ________________________

9732/01/Prelim/Yr6/11 2 © RI 2011 [Turn over BLANK PAGE

9732/01/Prelim/Yr6/11 3 © RI 2011 [Turn over RAFFLES INSTITUTION 2011 YEAR 6 PRELIMINARY EXAMINATION Higher 2 ECONOMICS 9732/01 Paper 1 Case Studies 1 September 2011 2 hours 15 minutes Additional Materials: Answer Paper Attach this cover sheet to your answer for Question 2. Cover Sheet Name : ________________________ Civics Class : ________________________ Economics Tutor : ________________________ Question No. Marks 2 /30 H Raffles Institution Nurturing the Thinker, Leader & Pioneer

9732/01/Prelim/Yr6/11 4 © RI 2011 [Turn over BLANK PAGE

9732/01/Prelim/Yr6/11 5 © RI 2011 [Turn over Answer all questions. Question 1 Rare Earths Extract 1: China controls rare earth supplies With over 90% of the global Rare Earth resource held by Chinese companies, the country’s monopoly looks unchallenged. The recent acquisition of stakes in Australian rare earth miners Lynas Corporation and Arafura Resources has brought China’s control of the majority of the rare earth deposits outside China. Rare Earth metals are needed for the manufacturing of wind turbines, solar panels, plasma televisions, mobile phones and hybrid car batteries meaning the Chinese monopoly could shift the high-tech manufacturing industry bases from Japan and Korea to China. Acquisitions of the Australian Rare Earth mines are strongly backed by the Chinese Government. Privately-owned Japanese companies are at a disadvantage when competing with state-owned Chinese companies. The Chinese have easy access to government capital while the risk assessment for a Japanese company can take much longer. Acquisition f