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Government and the economy

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Question 5

Extract 1: Logistics and Port Congestion in Peru

Nearly 45% of Peru's primary port facilities have been identified as operating beyond safe capacity by the National Port Authority. As agricultural exports (such as avocados and blueberries) surge, logistics companies face severe bottlenecks and delays, raising transit costs and compromising cargo safety. Significant public sector capital investment is required to modernise the docks, upgrade loading machinery, and construct deep-water facilities to accommodate larger cargo vessels.

With reference to the data in Extract 1 and your knowledge of economics, assess the extent to which a high level of public sector investment to modernise port infrastructure may benefit the Peruvian economy.

[9]

Government and the economy Questions

  1. IGCSE
  2. /Economics
  3. /Government and the economy