(a) Compare the change in retail sales in Singapore by type of outlet between 2000 and 2004.

Note Compare similarity and/or difference Similarity Overall trend? Difference Which type of outlet has changed the most and which type of outlet has changed the least?

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(b) Explain two reasons why supermarkets are growing so quickly in China.
Note Supermarkets growing so quickly its about increase in quantity which Economic concept is relevant? Which extract to look at for evidence? What evidence to quote and explain using Economic concepts? 1m for identification of the factor + 1m for explanation / elaboration

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(c)

(i) Describe the type of market structure operating in the UK grocery store in 2004.
Note 1m for identifying the correct market structure and 1m for justification

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(ii) Explain how the firms in this market might compete against each other.
Note How methods / strategies Compete price and non-price competition consider CONDUCT Which extract to look at for evidence? What evidence to quote and explain using Economic concepts? Why do they compete in this manner? consider STRUCTURE Hint: What is the most significant / unique feature of this market structure that must be explained?

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(d) Discuss the policy of divestment in the case of Tesco explaining clearly how this might affect consumer welfare.
Note Discuss 2-sided / balanced approach thesis and anti-thesis Affect consumer welfare impact on consumer welfare Thesis positive impact of divestment on consumer welfare Anti-Thesis negative impact of divestment on consumer welfare (LIMITATIONS of the policy) Intro 1) Clarify key terms what is divestment about? Which extract to look at for evidence? 2) Rationale / Aim of policy why did the government want to implement the policy of divestment? i.e. why is there a need for divestment? 3) Criteria for consumer welfare price, quality of products, variety of products, services, convenience Body 1) Positive / Negative impact on consumers How does divestment result in beneficial / detrimental effects on consumers in terms of any of the abovementioned criteria in the intro (price, quality, variety, services, convenience)? 2) Which extract to look at for evidence? What evidence to quote and explain using Economic concepts? Do consider the credibility / reliability of the last paragraph in Extract 6. 3) Any diagrams to draw? Which curve shifts? Is the shift parallel? Why? What happens to society welfare? 4) How would the entire UK supermarket industry react to this policy? link to question about consumer welfare 5) What happens to Tescos market share and profit levels due to this policy? 6) As a result of (5), what strategies would Tesco undertake or NOT continue to undertake? what positive and/or negative impact could arise due to the strategies undertaken / not undertaken link to question about consumer welfare based on any of the criteria mentioned in intro Conclusion Justify your stand on whether divestment truly benefits or harms the consumers.

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(e) In the light of the data provided, if you were an economic advisor to the Singapore government, would you recommend that it should follow the example of the Chinese authorities and encourage supermarket development? Justify your answer.
Note Justify 2-sided / balanced approach thesis and anti-thesis Economic advisor to government consider perspectives of government and society (society includes both the producers and consumers, since they indirectly affect each other) Follow example of Chinese authorities able to apply from Chinas context to Singapores context? Thesis follow the example of Chinese authorities and encourage supermarket development and WHY Anti-Thesis not to follow the example of Chinese authorities and discourage supermarket development and WHY Intro Characteristic of Singapores economy and link to context of the question about supermarket Body 1) Positive / negative effects of encouraging supermarket development in terms of any of the criteria price, quality, variety, services, convenience? 2) Which extract to look at for evidence? What evidence to quote and explain using Economic concepts? 3) Do consider what happens to wet markets if supermarkets were encouraged to develop. How would this impact the society. 4) Other factors to consider differences in China and Singapore in terms of demographics, population size, transport / labour costs etc Other considerations / Evaluation / Conclusion is there a need to encourage supermarket development in Singapore and WHY? 5) WHY did China decide to encourage supermarket development? i.e. what factors prompted the Chinese authorities to promote supermarket development? Are these factors seen in Singapores case? issue of applicability to another countrys context? Conclusion Justify your stand on whether supermarket development should be encouraged in Singapore.

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