International TradeClass 12 Fundamentals of Human Geography NCERT Solutions
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Solution 1 of 3
Q1EXERCISES
Choose the right answer from the four alternatives given below.
(i)
Most of the world's great ports are classified as:
(a)
Naval Ports
(b)
Oil Ports
(c)
Comprehensive Ports
(d)
Industrial Ports
(ii)
Which one of the following continents has the maximum flow of global trade?
(a)
Asia
(b)
North America
(c)
Europe
(d)
Africa
Solution
(i) (c) Comprehensive Ports
Explanation: The textbook states under the classification of ports that comprehensive ports handle bulk and general cargo in large volumes and that "Most of the world's great ports are classified as comprehensive ports."
(ii) (c) Europe
Explanation: The chapter highlights the historical dominance of Europe in trade, mentioning that after the Roman Empire's disintegration, "European commerce grew during twelfth and thirteenth century," and later, "industrial nations became each other's principle customers." This historical context suggests Europe's central role in global trade flows.
Q2EXERCISES
Answer the following questions in about 30 words:
(i)
What is the basic function of the World Trade Organisation?
(ii)
Why is it detrimental for a nation to have negative balance of payments?
(iii)
What benefits do nations get by forming trading blocs?
Solution
(i) What is the basic function of the World Trade Organisation?
The World Trade Organisation (WTO) is the sole international body that deals with the global rules of trade between nations. Its basic functions are to set the rules for the global trading system, promote free and fair trade, and resolve trade disputes among its member countries.
(ii) Why is it detrimental for a nation to have negative balance of payments?
A negative balance of payments, or an unfavourable balance of trade, is detrimental because it means a country spends more on importing goods and services than it earns from its exports. This imbalance can lead to the exhaustion of the nation's financial reserves.
(iii) What benefits do nations get by forming trading blocs?
Nations form regional trading blocs to encourage trade with countries that have geographical proximity and similar trading items. The primary benefits are the removal of trade tariffs among member nations and the promotion of free trade, which can speed up intra-regional trade.
Q3EXERCISES
Answer the following questions in not more than 150 words:
(i)
How are ports helpful for trade? Give a classification of ports on the basis of their location.
(ii)
How do nations gain from International Trade?
Solution
(i) How are ports helpful for trade? Give a classification of ports on the basis of their location.
Ports are essential for international trade as they serve as the chief gateways for global commerce. They are the points through which cargoes and travellers pass from one part of the world to another. Ports provide crucial facilities such as docking for ships, loading and unloading of cargo, and storage. The importance of a port is judged by the volume of cargo and the number of ships it handles, which reflects the economic development of its hinterland.
Ports can be classified on the basis of their location as follows:
- Inland Ports: These ports are located away from the sea coast and are connected to the sea by a river or a canal. They are accessible to flat-bottomed ships or barges. Examples include Manchester (linked by a canal), Kolkata (on the Hoogli river), and Memphis (on the Mississippi river).
- Out Ports: These are deep-water ports constructed away from the main parent ports. They serve the purpose of receiving large ships that cannot approach the parent port due to their size. An example is Piraeus, which serves as the out port for Athens in Greece.
(ii) How do nations gain from International Trade?
Nations gain significantly from international trade as it is based on the principles of specialisation, comparative advantage, and complementarity. These gains benefit the world economy and individual nations in several ways.
- Regional Specialisation: International trade allows countries to specialize in producing goods and services for which they have a comparative advantage. This leads to a higher level of overall production and efficiency.
- Better Standard of Living: Trade provides access to a wider variety of goods and services from around the world, often at lower prices. This enhances consumer choice and contributes to a better standard of living.
- Economic Growth: By exporting goods, nations can expand their markets, boost production, and create employment. Importing necessary raw materials or technologies that are unavailable domestically can also fuel industrial development.
- Diffusion of Knowledge and Culture: Trade facilitates the exchange of ideas, technologies, and cultural practices between nations, fostering innovation and mutual understanding.
- Equalisation of Prices and Wages: In principle, international trade can help to equalize prices and wages across the world, leading to a more balanced global economy.