Practise Cambridge IGCSE Economics by explaining globalisation causes, relating trade to GDP per head and evaluating benefits and harms for economies.
Indonesia operates a mixed economic system. Indonesia's central bank, Bank Indonesia, aims for stable prices. The country's price level can be influenced by changes in population size. Indonesia's population continues to grow but at a slower rate. Many of the country's industries are growing with particularly fast growth in Indonesian domestic and international air travel.
Discuss whether or not the global economy would benefit from an increase in air travel.
Discuss whether or not the global economy would benefit from an increase in air travel.
In assessing each answer, use the table opposite.
Why it might:
- may increase employment in the air travel industry
- may increase employment and output in related industries e.g. tourism
- may reduce firms' costs of production if quicker than other forms of transport
- may increase mobility of labour
- air travel is a safer form of travel than e.g. road travel
- encourages tourism and economic development of some countries.
Why it might not:
- may cause noise and air pollution (carbon footprint)
- may contribute to climate change
- may need to build new airports / extend existing airports which may reduce land available for e.g. housing.
- may reduce demand for other forms of transport
- unemployment may increase in e.g. sea travel
- high costs prevent movement of heavy goods.
8
See Guidance table at the end of the mark scheme.