IGCSE, A Level Business Student Forum

03 Analyse how the depletion of a natural resource, such as fish stocks, could impact an economy. [3]
Hint: Loss of jobs and businesses > Example: Fishing companies closing down > Leads to unemployment in coastal towns > Government may need to provide support.

Possible Structure - 3 Marker
[KN] >> [APP] >> [AN]

[KN] The depletion of a natural resource, such as fish stocks, can negatively impact an economy because it reduces the availabity of raw materials.
[APP] For example, if fishing companies close down due to a lack of fish, many workers in coastal towns would lose their jobs.
[AN] This creates unemployment, which lowers household incomes and reduces spending in the local economy. Businesses that depend on fishing, such as resturants or processing factories, may also suffer losses. In addition, the government may need to provide unemplyment benefits or financial support, increasing public spending and putting pressure on the country's economy.

(KN)it would increase unemployment
(APP)if a coal reserve runs out of coal , people who were recently employeed there will lose there jobs
(AN) losing job would cause them to struggle financially, eventually the goverment would have to pay unemployment benefits, giving them financial stress, causing them to take wrong decision for the economy.

[KN]Depletion of natural resources reduces the ability of businesses to continue operating.
[APP]For instance, falling fish stocks could force many fishing companies to shut down in coastal areas.
[AN]This causes job losses in fishing firms which leads to higher unemployment in coastal towns resulting in lower standard of living and the government having to provide welfare support straining public finances.

[KN] Exhausting natural resources, like oil, can harm an economy.
[APP] For instance, a shortage of oil might cause transport firms to close, decreasing government income from taxes taken from transport companies.
[AN] This could cause higher government costs because they might need to offer alternative transport, increasing public spending and possibly creating a budget deficit.

(KN)Lost of jobs in the primary sector.
(APP)For instance, if there is a depletion in natural minerals in a country, then many mining companies will have depleted output, so they will lay off many miners in order to cut costs.
(AN)This will mean a lot of people in the population won't be earning an income, leading to people not being able to afford basic necessities, worsening living standards, as well as forcing the government of the country to pay for unemployment benefits, which lead to less tax revenue being available for the infrastructural development of the country.

[KN]It can impact employment levels and income.
[APP]It can affect both individual livelihoods and economy through lower spending and lower economic activity.
[AN]This can lead towards a rise in poverty(job losses) leading towards reduced tax revenue for the government and tus the govt may be unable to pay back loans/depts leading towards economic downturn.

[KN] Loss of jobs in the primary sector due to depletion of resources
[APP] e.g. if there is depletion of resources companies will lay of workers in order to cut costs
[AN] This means if most of the people work in primary sector they wont be earning enough leading to people not being able to fulfill their basic necessities thus leading towards an increase in poverty.

[kn] this may lead to people losing there jobs and businesses having to shut down [app] as businesses centred around selling fish wouldn't have anything to sell without there main resource [an] this may lead to a economic downfall if its the countries main export which would decrease its balance of trade and balance of payment which will reduce government earning

KN: There might be a great loss of jobs and business collapses in the the market due to depletion in fish stock.
APP: For instance, due to this many fishing firms will shut down.
AN: This this will lead to unemployment due to which the economy's income will decrease, leading to a decline in the living standards, therefore, the government may have to provide necessary financial support.

KN-->It will lead to the unemployment
APP--> f.e if fish stocks are overused, fisherman and fish seller will lose their job
AN+-->This will increase the poverty rate as many familes will lose their income. This will also create social unstability as many people may have to migrate for their jobs. The govt will have to use tax revenue on the welfare of these people, which will reduce their budget to spend on the infrastructure of country.

{KN}Reduced employment fewer jobs in industries directly dependent on the resource.
{APP}Example (Application):
In West Africa, overfishing by large industrial trawlers has severely reduced local fish stocks. Small-scale fishermen in countries like Senegal have struggled to catch enough to sustain their livelihoods.
{AN}As fish become scarcer, many fishermen lose their jobs or see their incomes fall. This reduces household spending power in coastal communities, leading to lower demand for local goods and services

[KN]: Depletion of natural resources like fish stocks would have a negative impact on economy due to lack of availability of raw materials
[APP]: For example, if there is no fish stock this would lead to closure of fishing companies
[AN]: As a result, this would cause unemployment leading to decrease in the income of workers and local economy due to this the government would have to provide support. Many seafood restaurants depending on fish stock would also suffer loss and this would also weaken their brand image.

K: It can negatively affect an economy because it reduces the availability of raw materials for production. App: For example, if fish stocks in a country like Japan or Norway fall sharply the fishing industry will struggle to supply seafood to processors and exporters. An: This can lead to falling incomes and job losses for fishermen and related businesses, reducing household spending and harming local communities. It may also increase imports of seafood to meet demand, worsening the trade balance. In the long run, the decline of an entire industry reduces GDP growth and weakens the country’s economic competitiveness.

If fish stocks run low, the fishing industry produces less, reducing jobs and incomes (K). For example, in coastal areas like Scotland many families depend on fishing for work (App). This loss of income also hits local businesses, creating wider economic problems (Analysis)