Question 5 Answer

(a)  Cottage industries refers to any business activity that is operated from someone’s home.

(b) (i) Three products created by cottage industries are pottery, mats and small craft items.

(ii) The raw materials used in the creation of pottery items, mats and craft items are clay, straw and  wood respectively.

(c)  Cottage industries are a source of employment for many Caribbean people. It helps to reduce unemployment during economic recessions when persons start viable cottage industries to survive. Cottage industries have low cost raw materials and have very low overheads. They can therefore sell goods and services at reasonable prices thus reducing inflation.

(d)  Linkage industries reduce the need for importation and therefore help to curb balance of payments deficits. Less valuable foreign exchange is also spent on imports.

Linkage industries help to develop local businesses thus increasing employment and GDP.

Linkage industries increase the utilization of local raw materials to meet the demands of various industries.

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