This document consists of 4 printed pages.
SP (SJF2628/PW) S40562/3
© UCLES 2003
CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Subsidiary Level and Advanced Level
Paper 2 Data Response and Essay (Core)
1 hour 30 minutes
READ THESE INSTRUCTIONS FIRST
If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet.
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen on both sides of the paper.
You may use a soft pencil for any diagrams, graphs or rough working.
Do not use staples, paper clips, highlighters, glue or correction fluid.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
Answer this question. Brief answers only are required.
Answer any one question.
You may answer with reference to your own economy or other economies that you have studied where
relevant to the question.
Answer this question.
The World Coffee Market
The recent expansion of Asian coffee producers in the world market has caused major price
changes. The Association of Coffee Producing Countries (ACPC), led by Brazil, agreed a coffee
retention scheme in 2000. Under the scheme, members undertook to hold back 20% of their
The coffee crop for 2000/2001 was 113 million bags and world consumption was 102 million bags,
with supply growing at 3.5% per annum and demand at 1.5% per annum. Alternative measures to
reduce this surplus were under discussion.
The ‘Fairtrade’ organisation has been set up in western coffee-consuming countries to guarantee
fair prices to coffee producers in an effort to raise their living standards. At the end of 2000 the
guaranteed price was more than three times the current world market price. ‘Fairtrade’ buys
directly from growers, w