This document consists of 3 printed pages and 1 blank page.
SP (CW) S58057/2
© UCLES 2004
UNIVERSITY OF 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.
Answer this question. Brief answers only are required.
Answer any one question.
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.
You may answer with reference to your own economy or other economies that you have studied where
relevant to the question.
© UCLES 2004
Answer this question.
Two Asian Giants
China has the world’s largest population and is experiencing rapid economic growth from a low
base. It has recently joined the World Trade Organisation (WTO) with an obligation to open its
economy to freer international trade.
In 2002 an economic spokesman for neighbouring Japan stated that this did not mean that China
was a threat to Japan’s position as ‘the factory of the world’. He claimed that China was a labour-
intensive, low-cost producer, while Japan was ahead in technology-intensive products. He quoted
television production, where Japan specialised in high quality models, while China produced
standard models. Engineering and electronics showed similar positions. He argued that Chinese
export competitiveness was based on cheap labour which reflected poor labour productivity. He