4.1.1 Name any TWO international benchmark criteria for regional development - NSC Economics - Question 4 - 2021 - Paper 1
Question 4
4.1.1 Name any TWO international benchmark criteria for regional development.
4.1.2 Why are liabilities added when calculating net direct investments in the financi... show full transcript
Worked Solution & Example Answer:4.1.1 Name any TWO international benchmark criteria for regional development - NSC Economics - Question 4 - 2021 - Paper 1
Step 1
Name any TWO international benchmark criteria for regional development.
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Answer
Free-market operation
Sustainability
Step 2
Why are liabilities added when calculating net direct investments in the financial account of the balance of payments?
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Answer
Liabilities are added because they represent a capital inflow or money flow from foreign sectors into South Africa, which contributes positively to the financial account balance.
Step 3
Identify the supply reason for international trade addressed in the extract above.
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Answer
Access to scarce resources encourages countries to engage in international trade.
Step 4
Name the product explicitly recorded in the current account, due to its historic importance.
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Answer
Agricultural products.
Step 5
Briefly describe the term mass production.
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Mass production refers to the manufacturing of large quantities of standardized products, often using assembly line techniques, which helps in reducing costs and increasing efficiency.
Step 6
Explain the reason for South African consumers importing products that are available on domestic markets.
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South African consumers may prefer imported products due to higher quality, brand loyalty, or lower prices compared to local offerings.
Step 7
How could natural disasters, such as a drought, influence the South African trade balance?
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Natural disasters like droughts can lead to reduced agricultural output, resulting in decreased exports and increased imports to meet domestic food needs, thereby weakening the trade balance.
