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3.1 Answer the following questions - NSC Economics - Question 3 - 2024 - Paper 1
Question 3
3.1 Answer the following questions. 3.1.1 Name any TWO redress policies in South Africa. 3.1.2 How can import substitution promote industrialisation? 3.2 Study th... show full transcript
Worked Solution & Example Answer:3.1 Answer the following questions - NSC Economics - Question 3 - 2024 - Paper 1
Step 1
Name any TWO redress policies in South Africa.
Answer
Two notable redress policies in South Africa are:
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Broad Based Black Economic Empowerment (BBBEE): This policy aims to address historical inequalities by promoting economic participation and ownership among previously disadvantaged groups.
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Employment Equity Act (EEA): This legislation seeks to eliminate unfair discrimination in the workplace and ensure that individuals from designated groups have equal opportunities.
Step 2
How can import substitution promote industrialisation?
Answer
Import substitution can promote industrialisation by encouraging the establishment of new businesses that produce goods and services locally. By reducing reliance on foreign imports, domestic industries can emerge and grow. This process stimulates local production, creates jobs, and fosters innovation as companies seek to meet local demands.
Step 3
Step 4
Step 5
Briefly describe the term import quota.
Answer
An import quota is a trade restriction that limits the quantity of goods and services that can be imported from other countries. This measure is implemented to protect local industries by controlling the amount of foreign competition in the domestic market.
Step 6
Explain the role of the World Trade Organisation (WTO) in promoting free trade.
Answer
The World Trade Organisation (WTO) plays a crucial role in promoting free trade by:
- Acting as a forum for multilateral trade negotiations.
- Administering and implementing multilateral trade agreements to ensure compliance.
- Resolving trade disputes between member countries and supervising the review of national trade policies.
Step 7
How can dumping impact on consumers in the importing country?
Answer
Dumping can impact consumers in the importing country in both the short-term and long-term:
- In the short term, consumers may benefit from lower prices for goods and services, improving their welfare.
- However, in the long term, consumers might face higher prices as local businesses struggle to compete with dumped products. This can lead to fewer choices and potential increases in costs as local industries decline.