In country Y, the Government wants to promote more secondary sector business activity in order to cut unemployment. It has announced lower taxes and intends to relax some legal controls on business activity. Kasper Construction is a multinational company from country X that wants to grow. If it can locate a suitable site, it plans to build a brick-making factory in country Y. Some pressure groups oppose this plan because Kasper Construction is known for environmental damage.
Fig. 1: Employment in country Y. A pie chart shows employment by sector: primary sector 60%, secondary sector 15%, tertiary sector 25%. Total number of people employed in 2015 = 20 000 000.
(a)[2]
What does the term ‘primary sector’ mean?
(b)[2]
Calculate how many people in country Y are employed in secondary sector businesses.
(c)[4]
Identify and explain two ways that a reduction in taxes could benefit Kasper Construction.
(d)[6]
Identify and explain two factors, apart from taxes, that Kasper Construction should think about before deciding on a location.
(e)[6]
Do you think that the Government of country Y should encourage Kasper Construction to establish itself in country Y? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “It involves extracting or producing raw materials, or using the Earth's natural resources to make raw materials that other businesses use.” …