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Answer the following questions - NSC Economics - Question 3 - 2024 - Paper 2
Question 3
Answer the following questions. 3.1.1 State any TWO effects of tourism. (2) 3.1.2 Why are businesses reluctant (unwilling) to change to more environmentally friend... show full transcript
Worked Solution & Example Answer:Answer the following questions - NSC Economics - Question 3 - 2024 - Paper 2
Step 1
State any TWO effects of tourism.
Answer
Tourism can lead to various positive effects on a country's economy. Two significant effects are:
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Increase in GDP: Tourism contributes significantly to a country's GDP by generating income from the influx of international visitors.
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Reduction in Poverty: By creating job opportunities in various sectors such as hospitality and transport, tourism helps alleviate poverty in local communities.
Step 2
Why are businesses reluctant (unwilling) to change to more environmentally friendly production methods?
Answer
Businesses often hesitate to adopt environmentally friendly practices due to several factors:
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Higher Costs of Production: Transitioning to greener technologies or methods can incur significant initial investments and operational costs, which might affect profit margins.
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Loss of Revenue: Businesses fear that changing their production methods could lead to decreased efficiency and loss of revenue in the short term, which discourages them from making such changes.