Geography
Global production and development
- 1.
Fictional apparel value-chain case: a garment sells for $40; factory payment is $8, including $2 in worker wages per garment. The remaining retail price covers other costs and margins; their split is unknown. A new factory creates jobs but local river pollution increases. All amounts and claims describe an invented case. Explain what a global value chain is using the garment example.
[2 marks] · no calculatorAnswer explanation
Draft walkthroughs are based on marking guidance, not independently verified derivations.
- The $40 price is produced through several linked activities, not just sewing. Global organisation can separate the location of labour from the location of branding and final sales.
- Award each point once. Accept other well-supported interpretations addressing the task.
Marking points
- It links stages such as design, production, transport and retail across locations.
- Different participants receive different shares of the final sale value.
Examiner tip: Value-chain stages are not identical to a list of countries.
- 2.
Fictional apparel value-chain case: a garment sells for $40; factory payment is $8, including $2 in worker wages per garment. The remaining retail price covers other costs and margins; their split is unknown. A new factory creates jobs but local river pollution increases. All amounts and claims describe an invented case. Calculate wages as a percentage of retail price and of factory payment.
[2 marks]Answer explanation
Draft walkthroughs are based on marking guidance, not independently verified derivations.
- Use the same wage numerator with two different bases. The shares differ because factory payment is only part of the retail price; neither share alone states whether wages meet living costs.
- Award each point once. Accept other well-supported interpretations addressing the task.
Marking points
- Wage share of retail price = 2/40 × 100 = 5%.
- Wage share of factory payment = 2/8 × 100 = 25%.
Examiner tip: State the denominator; 5% and 25% answer different questions.
- 3.
Fictional apparel value-chain case: a garment sells for $40; factory payment is $8, including $2 in worker wages per garment. The remaining retail price covers other costs and margins; their split is unknown. A new factory creates jobs but local river pollution increases. All amounts and claims describe an invented case. Explain two mechanisms through which the factory can support local development and one condition affecting the size of those benefits.
[3 marks] · no calculatorAnswer explanation
Draft walkthroughs are based on marking guidance, not independently verified derivations.
- Trace income beyond the initial job: workers buy services and firms may source locally. Benefits are weaker if spending leaks into imports or profits leave the locality.
- Award each point once. Accept other well-supported interpretations addressing the task.
Marking points
- Wages can increase household spending and demand for local services.
- Training or supplier links can build skills and business activity.
- Explains that local retention of spending and linkages affects the multiplier.
Examiner tip: Job numbers alone do not measure the full local multiplier.
- 4.
Fictional apparel value-chain case: a garment sells for $40; factory payment is $8, including $2 in worker wages per garment. The remaining retail price covers other costs and margins; their split is unknown. A new factory creates jobs but local river pollution increases. All amounts and claims describe an invented case. Explain why rising income per person may conceal uneven development.
[3 marks] · no calculatorAnswer explanation
Draft walkthroughs are based on marking guidance, not independently verified derivations.
- Income summarises monetary output but not who benefits or what harms accompany it. Combine it with distributional and social measures rather than equating a higher mean with universal improvement.
- Award each point once. Accept other well-supported interpretations addressing the task.
Marking points
- An average can rise when gains are concentrated among a small group.
- Unpaid environmental costs may not be deducted from income measures.
- Distribution, health and education indicators provide complementary evidence.
Examiner tip: A national average is not every household's income.
- 5.
Fictional apparel value-chain case: a garment sells for $40; factory payment is $8, including $2 in worker wages per garment. The remaining retail price covers other costs and margins; their split is unknown. A new factory creates jobs but local river pollution increases. All amounts and claims describe an invented case. Evaluate the claim that the retailer earns $32 profit per garment.
[4 marks] · no calculatorAnswer explanation
Draft walkthroughs are based on marking guidance, not independently verified derivations.
- The residual is not net profit. To estimate profit, identify all relevant costs and which organisation pays them; subtraction of factory payment alone cannot supply that information.
- Award each point once. Accept other well-supported interpretations addressing the task.
Marking points
- $40 minus $8 leaves $32 outside the factory payment.
- Transport, design, marketing, taxes and retail costs may use part of that amount.
- The case explicitly does not provide the split of costs and margins.
- Rejects an exact profit claim while recognising uneven allocation of gross value.
Examiner tip: Revenue, gross margin and net profit are not interchangeable.
- 6.
Fictional apparel value-chain case: a garment sells for $40; factory payment is $8, including $2 in worker wages per garment. The remaining retail price covers other costs and margins; their split is unknown. A new factory creates jobs but local river pollution increases. All amounts and claims describe an invented case. Assess whether closing the factory is the most sustainable response to river pollution.
[4 marks] · no calculatorAnswer explanation
Draft walkthroughs are based on marking guidance, not independently verified derivations.
- Sustainability requires evaluating social and environmental effects together. Severe uncontrolled harm may justify closure, but a credible compliance plan could preserve employment while protecting downstream users.
- Award each point once. Accept other well-supported interpretations addressing the task.
Marking points
- Closure could stop that pollution source if enforced.
- Job losses can harm households dependent on factory income.
- Treatment, regulation and monitored cleaner production may reduce harm without total closure.
- Judges options conditionally on pollution severity, enforcement capacity and feasible alternatives.
Examiner tip: Consider downstream users as well as employees and owners.
Marking points are indicative, not an official mark scheme. Accept equivalent valid methods and supported interpretations that address the task; award each mark once without requiring the model wording.