Question

Ade’s Engineering Company(AEC) makes parts for cars and trucks. These are sold to car manufacturers in many countries. The parts include metal brake components and rubber seals to fit around windows. AEC operates in Country X, which until a few years ago, had an economy dominated by agricultural and coal mining. Over the last 20 years, the relative importance of the primary sector has declined. To be successful, AEC required natural resources to make acr parts and the services provided by the other businesses. Consumer income is rising rapidly in Country X. 1. What is meant by Primary sector [2] 2. Identify two examples of services that a business such as AEC requires [2] 3. Identify and explain 2 reasons why a business such as AEC could not be successful without other firms providing natural resources. [4] 4. Identify and explain two likely reasons why the relative importance of the primary sector of Country X’s economy has declined. [6] 5. A Government minister in Country X has recently said “The secondary sector of industry will always be more important than the tertiary sector to our economy”. Do you agree with this view? Justify your answer. [6]

Answer 1

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