9

Question 1

Other strategies for growth and development

Answer 1

Fair trade
Aid
Debt relief

Question 2

Advantages of fair trade schemes

Answer 2

Ensures farmers receive fair price for goods
Helps farmers plan for long- term due to stable income
Encourages sustainability, environmental protection and stops child labour

Question 3

Disadvantages of fair trade scheme

Answer 3

Distorts market
Non- fair trade

Question 4

Advantages of aid

Answer 4

Helpful in short- term
Helps project for long term development

Question 5

Disadvantages of aid

Answer 5

Corruption means it may not help
Private firms cannot compete

Question 6

Debt relief

Answer 6

Partial/ total debt forgiveness
Main cause of poverty

Question 7

Disadvantages of debt relief

Answer 7

Encourages future borrowing
Corruption

Question 8

Role of financial market

Answer 8

To facilitate saving
To lend
To facilitate the exchange of goods and services
To provide currency markets
To provide a market for equities

Question 9

Current government expenditure

Answer 9

Ongoing spending (eg drugs for NHS)

Question 10

Capital government expenditure

Answer 10

Spending on assets that can be reused