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Chapter Analysis
Intermediate7 pages • EnglishQuick Summary
The chapter on International Trade in the NCERT Geography textbook discusses the dynamics and significance of trading on a global scale. It covers the foundational principles of comparative advantage, types of international trade such as bilateral and multilateral trade, and the evolution of trade from barter systems to modern trade practices. The chapter also delves into the roles of the World Trade Organisation (WTO) and regional trade blocs, highlighting both positive impacts and challenges of global trade, including issues like trade liberalization and dumping.
Key Topics
- •History and evolution of trade
- •Bilateral and multilateral trade
- •Trade liberalization and free trade
- •World Trade Organisation (WTO)
- •Regional trade blocs
- •Effects of globalization
- •Balance of trade
- •Dumping in international trade
Learning Objectives
- ✓Understand the historical development of international trade
- ✓Explain the differences between bilateral and multilateral trade
- ✓Analyze the role and impact of the WTO in global trade
- ✓Discuss the advantages and disadvantages of trade liberalization
- ✓Identify the key features and benefits of regional trade blocs
- ✓Evaluate the challenges faced by developing countries in the global trade environment
Questions in Chapter
Choose the right answer from the four alternatives given below. (i) Most of the world’s great ports are classified as:
Answer: (c) Comprehensive Ports
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Choose the right answer from the four alternatives given below. (ii) Which one of the following continents has the maximum flow of global trade?
Answer: (c) Europe
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What is the basic function of the World Trade Organisation?
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Why is it detrimental for a nation to have negative balance of payments?
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What benefits do nations get by forming trading blocs?
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How are ports helpful for trade? Give a classification of ports on the basis of their location.
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How do nations gain from International Trade?
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Additional Practice Questions
Explain the concept of comparative advantage in international trade.
mediumAnswer: Comparative advantage refers to the principle that nations should engage in the production and export of goods they can produce more efficiently relative to other countries. This fosters specialization and increases overall economic welfare.
Discuss the impact of globalization on developing countries.
hardAnswer: Globalization can have mixed impacts on developing countries. Positive effects include access to larger markets, increased foreign investments, and technology transfer. However, it can also lead to increased competition, job losses in certain sectors, and influence inequitable economic policies.
What are the main arguments against free trade?
mediumAnswer: Critics of free trade argue that it can lead to job losses in certain domestic industries, widen inequality gaps, and promote environmental degradation. Additionally, it might not ensure fair labor practices and can be exploited by stronger economies at the expense of weaker ones.
Describe the role of regional trade blocs in modern global trade.
mediumAnswer: Regional trade blocs are agreements among neighboring countries to promote trade by reducing or eliminating trade barriers. They can enhance economic integration, offer collective bargaining power in global markets, and protect member nations from global market volatility.
How does international trade influence cultural exchange?
easyAnswer: International trade facilitates cultural exchange by introducing new products, ideas, and traditions across borders. This can lead to greater cultural understanding and influence, but may also spark concerns over cultural homogenization or loss of local traditions.