Describe the trends in the cost of sending remittances from the three regions shown on the graph.

Outline one possible reason why transferring remittances creates costs for foreign workers.

Explain two reasons why remittances are often an effective way of reducing global disparities.

Reason 1:

Reason 2:

Explain how inequalities can arise from ethnic differences in one named country.

Named country:

Award [1+1] for two valid descriptive points. Must make use of data for the full two marks.

• Fluctuating – [1] can be awarded for comment that covers all three regions as a group or separate descriptions of fluctuation for all regions.
• Decreasing – [1] can be awarded for comment that covers all three regions as a group or separate descriptions of decrease for all regions.

Award [1] for each reason and [1] for further development or exemplification.

Possibilities could include:

• bank charges
• money transfer percentages
• commission charged
• internet charges
• exchange rates
• shipping costs.

For example:
When money is transferred into another currency money is lost through exchange rates [1] as different currencies have different values on the open market [1].

Transaction charges are made by banks [1] when money is transferred through a bank they make a fixed charge or take a percentage of the transfer [1].

For each distinct reason award [1] for the reason and [1] for further explanatory development/exemplification.

For example: Money or goods help fund education programmes [1], increasing future job/salary-earning potential [1].

Other possibilities could include:

• often hard currency/greater value in receiving country
• increases local spending/boosts local market
• often shared with extended families/increases standard of living of a large number of individuals
• large amount of money is transferred/gives large investment fund for communities
• remittances are stable source of money/reliable for development whereas other forms of investment, such as aid, can vary
• flows in one direction / does not result in external debt.

• identification of valid country where ethnic differences give rise to inequalities [1]
• identification of the ethnic group(s) involved [1]
• description of the nature of the inequality eg education, employment, access to housing [1]
• explanation of the origin of the inequality [1].

For example:
South Africa [1]:
Inequalities have arisen between groups of African (black) and European (white) origin [1]. This is the result of differences in the quality of education between the two groups as the white population has access to better education facilities [1].
These differences are the result of the black population being unable to afford to send their children to school [1].

UK [1]:
Inequalities in housing occur in the UK where there is a high percentage of Bangladeshis [1] of whom about 30% live in overcrowded accommodation [1].
This can be seen to be the result of their disadvantaged position in the labour market where they occupy lower paid employment [1].