Question

An example of an agriculture commodity with particularly volatile prices is coffee. The price of coffee on world markets fluctuates a great deal from year to year because of weather and because of the entry of new suppliers in Brazil and new supplying countries such as Vietnam. [1] Who will lose when coffee prices fall as countries become more efficient at growing coffee and begin exporting them? Please explain your answer using the specific-factors model. [2] Can anything be done to avoid the kind of boom-and-bust cycle that occurs regularly in coffee markets? Please specify at least two possible ways to solve this problem. [3] If you are an economist, what trade policy would you suggest the government to protect your coffee farmers by propping up prices?

Answer 1

‘People have become obsessed with travelling ever further and faster. However,

travel is expensive, dangerous, damaging and a foolish waste of time!’

Write an article for a news website in which you argue your point of view on this

statement.

(24 marks for content and organisation

16 marks for technical accuracy)

[40 marks]

Explan‘People have become obsessed with travelling ever further and faster. However,

travel is expensive, dangerous, damaging and a foolish waste of time!’

Write an article for a news website in which you argue your point of view on this

statement.

(24 marks for content and organisation

16 marks for technical accuracy)

[40 marks]

ation: