03- The Making Of Global World

 

THE MAKING OF A GLOBAL WORLD

CHAPTER – 03

NOTES BY  GULZAR SIR

IMPORTANT DATES TO REMEMBER

1. The Great Depression began inUS economy : 1929 C.E.
2. The Second World War broke out and ended :           1st September, 1939 to

1945 C.E.

3. IMF and World Bank : Both instutions or twinproducts

ofBrettonwoodsConference

1944.

4. The United Nations Monetary and : July 1944 at Brettonwoods

Financial Conference held                                              in New Hampshire, USA.

5. The full name of World Bank : The International Bank for

established after the Second World War                                    Reconstruction and

                                                                                         Development (IBRD).

6. IMF and World Bank started operation in :           1947 CE

TEXT BOOK QUESTIONS (SOLVED)

1. 1. Give two examples of different types of global exchanges which tookbalance before the seventeenth century, choosing one example from Asia andone from the Americas.

Ans. Example I: Example from Asia :The Indian Ocean gave birth tobustling trade with goods, people, knowledge, cultures etc. The Indian subcontinent wascentral to these flows and a crucial point in the networks..

Example II:  Example for the Americas :The entry of the Europeanshelped expand or redirect some of these flows towards Europe.America’s goods like spagheti, potato, chillies, tomato, maize, groundnut, sweet potatoes etc.,entered in India and other countries of Asian continent

2. 2. Explain how the global transfer of disease in the pre-modern worldhelped in the colonisation of the Americas.

Ans. It is a historical fact that the global transfer of disease (such as small pox) in thepre-modern world helped  in the colonisation of the Americas by following ways:

(1) The Portuguese and Spanish conquest and colonisation were not just results ofsuperior fire works or weapons, Infact, the most powerful weapon was epidemic of smallpox.

(2) Germs of small pox they carried on their person. Natives on America were notimmunised from the disease hence, they started dying immediately.

(3) Small pox in particular, proved a deadly killer. Once introduced, it spread deepinto the continent, even before any Europeans could reach there. It killed and decimatedwhole communities, paving the way for conquest.

3. 3. Write a short note to explain the effects of the following:

(a) The British government’s decision to abolish the Corn Laws.

Or

Why were the Corn Laws scrapped ? Explain any three reasons.

Or

Why did British government decide to abolish Corn Law?

(b) The coming of rinderpest to Africa.

Or

What was the impact of the spread of rinderpest or the cattle plague on theAfrican people? Explain.

(c) The death of men of working-age in Europe because of the world war.

(d) Explain the impact of Great Depression of 1929 on the Indian economygiving three points.

(e) The decision of MNCs to relocate production to Asian countries.

Ans. (a) The British Government’s decision to abolish the Corn Laws:Increasing demand of foodgrains due to spurt in population, indigenous production fallenshort to cater their demand and sometimes, corn laws being just contrary to accommodatethe situation, these laws were repealed and rescinded. The abolishment of the Corn Lawshelped in checking the rising prices of food-grains in from other countries in England, thepeople became happy.

(b) The coming of rinderpest to Africa :(i) Rinderpest, devastating cattle disease,arrived in Africa in the late 1880s. It was carried by infected cattle. These cattle wereimported from British Asia. These were animals for meat of flesh. Indian soldiers weremeat-enters and that time engaged in invasion on Eritrea in Eastern Africa.

(ii) Entering Africa in the East, rinderpest moved West ‘like a forest fire’, streachedaround Africa’s Atlantic coast in 1892. Cape (Africa’s southernmost tip) was also infestedby that lethal disease just after five years. Along the way, rinderpest killed 90 per cent ofthe total cattle.

(iii) The loss of cattle made African unemployed and starving. Planters and mineowners as also colonial governments monopolised what scarce cattle resources remained,because they were wealthy and started pushing African’s into labour market.

(c) (i) The First World War was the most fateful war that the world had so far(1914–1918) seen most men of working-age were either maimed or dead. These deaths andinjuries reduced the able-bodied work-force in Europe.

(ii) With fewer numbers within the family, household income declined after the greatwar.

(iii) To fulfil the demand of workers women were given jobs. They became economicallyindependent or self dependent and helped their family economically.

(iv) Some working people were welcome from other countries in Europe. This newsituation helped in exchange of culture and immigration or migration a lot on the globallevel.

(d) Impact of the Great Depression of the Indian economy: (i) The depressionimmediately affected Indian trade. India’s exports and imports recorded nearly halvedbetween 1928 and 1934. As international price crashed, prices in India were also plunged.Between 1928 and 1934, wheat prices in India fell by 50 per cent.

(ii) Peasants and farmers suffered the most as revenue demand was kept fixed andrecovery was done through repressive ways.

(iii) Sharp reduction in quantum and price of exports and import resulted in peasant’indebtedness. They had to sell their jewellery and precious metals in order to meet theirexpenses including payment of imports/taxes.

(iv) In these depression years, India became an exporter of gold. The famous economistKeynes thought that Indian gold exports might have promoted global economic recovery.It certainly help in sped up Britain’s recovery, but did little for the Indian peasants. RuralIndia was thus, seething with unrest when Mahatma Gandhi launched the CivilDisobedience Movement at the height of the depression in 1931.

(v) Big landlords (who let their property) and middle class-cum-salarised people wereremained unaffected of the Great Depression. They even made fat their coffers but commonpeople succumbed to hunger and diseases.

(e) MNCs (Multi National Corporations) :(i) Multinational Corporations (MNCs)are large companies that operate in several countries at the same time. The first horde ofMNCs established in the 1920s. Many more came up in the 1950s and 1960s as USbusinesses expanded worldwide and Western Europe and Japan also recovered to becomepowerful industrial economies.

(ii) The worldwide spread of MNC is witnessed as sudden break-out or diffusion of theatom formed during both decades of 1950 and 1960. Till then, there were trade barriersimposed by Indian Government in the form of several taxes on import and exports.

(iii) MNCs surveyed in-depth, the increasing unemployment situation in India between1970 and 1990s. It found that is was golden opportunity to get the production work doneby the Indian youth longing for employment and lost of self-creativity. Refer to productionoperations commenced by MNCs during above said decades.

(iv) As it is all evident from China made TV sets, mobile phones and toys that lowwage is paid to factory-workers there. MNCs had installed their production units orindustries only in countries where cost structure of economy has subsided.

4. 4. Give two examples from history to show the impact of technology onfood availability.

Ans. Ist Example: Trade in meat spurt up when refrigerated ships were fabricatedand designed by technocrats. Till 1870s, live-stock was shipped from America to Europeand only then, cattle for slaughter used to turn into meat for consumption. However, nowthe meat packed in containers started reaching to centres in Europe from America.

IInd Example: Network of irrigation, transport system (railways, roads), efficienttools for agriculture, machines of modern technology for all agricultural operations,electrification, spurt in telecommunication systems, value addition to all agricultural andindustrial products—all could possible when technological development was entered in.Food was also offered with numerous varieties.

5. 5. What is meant by the Bretton Woods Agreements?

Ans. The meaning of the Bretton Woods Agreements :(i) This agreement wassigned between the world powers in July 1944 at Mount Washington Hotel situated atBretton Woods in New Hampshire, USA.

(ii) It was a framework that was drawn up by the industrial countries to recover andconsolidate the economies in the post war era.

(iii) Its main objective was to establish economic stability in the world.

(iv) Later on the framework of Bretton Woods Agreements was agreed upon at theUnited Nations Monetary and Financial Conference. This conference stabilished the IMF(International Monetary Fund) to deal with external surplus and deficit of its membernations.

(v) The International Bank for Reconstruction and Development (popularly known asWorld Bank) was set-up to finance post war reconstruction.In this way IMF and the World Bank (the both international financial institutionsstarted financial operation in 1947).

6. 6. Imagine that you are an indentured Indian labourer in the Caribbean.Drawing from the details in this chapter, write a letter to your family describingyour life and feelings.

Ans. Respected parents,

I am sure this letter will find of you in the best of health as it leaves me here. As youknow I have been hired under a contract which promises return travel to India after Ihave worked five years on my employer’s plantation in the Caribbean. Most of the workersworking with me are Indians and they are from eastern Uttar Pradesh, Bihar, CentralIndia and the dry regions of Tamil Nadu. We were provided false information by agentsabout the nature of work and living and working conditions. On arrival at the plantation,I found conditions to be different from what I had imagined. Living and working conditionsare hard and there are few legal rights. Once I tried to escape in the wilds but I was caughtand given severe punishment.

I want to come back to India as soon as my contract ends. I have heard that ournationalist leaders have started opposing the system of indentured labour migration asabusive and cruel. I hope they will succeed in getting this system abolished. May God helpthem succeed so that I can return to India and reunite with my parents !

With regards,

Your Son

ABC

7. 7. Explain the three types of movements or flows within internationaleconomic exchange. Find one example of each type of flow which involved Indiaand Indians, and write a short account of it.

Or

Mention three types of movements or flows within the international economicexchange in the 19th century.

Ans. Three types of movements or flows in international trade and commerce:

• Trade in goods like cloth and wheat.
• Migration of people in search of job.
• Short and long-term investments by traders in distant countries.

Examples : each type of flow from India and Indians :

(i) Trade and Commerce: Britain took wheat and cloth—cotton, silken and woolen of extraordinary quality and having demand in European countries from India. Inanticipation of wind-fall in land revenue and a number of other taxes and tariffs, theBritish Government in India focussed upon improving irrigation facilities in Punjab toincrease production of wheat and cotton.

(ii) Man Power: Some labourers were employed in railways, shipping and industrialfactories and plantation owned by the English in India and some were taken by factoryowners in England.

(iii) Capital :Indian landlords were supported by the British Government againstthe poor fellows of India. They were allowed to charge higher rate of interest. Some of thecapitalists invested in England and other European and African countries for better return.Indian traders and moneylenders also followed European colonisers into Africa. HyderabadiSindhi traders, however, ventured beyond European colonies. From the 1860s, theyestablished flourishing emporia at busy ports worldwide, selling local and imported curiosto tourists whose numbers were beginning to swell. Thanks to the development of safe andcomfortable passenger vessels.

8. 8. Explain the causes of Great Depression.

Or

What do you know about the Great Depression? Explain the major factorsresponsible for the Great Depression,

Or

What do you know about Great Depression ? What two any causes of it.

Ans. I. Meaning of Great Depression (1929-1933) :The Great Depression beganaround 1929 and lasted till the mid- 1930s. During this period, most parts of the worldexperienced catastrophic declining trend in production, employment, incomes and trade.The exact incidence and impact of the depression varied between counties. But in general,agricultural regions and communities were the worst affected.

1. Causes/Factors:

(i) Over Production :Over production of foodgrains and other agricultural productswas a major factor for depression. Price slumped because no expansion in demandside took place. Farm produce rotted due to glut in market.

(ii) Emphasis on quick loan recovery :USA initially financed to a number ofcountries in Europe including England but in phase of the Great Depressionshowed its teeth, loan recovery agencies of USA practised auction sale etc., ofproperties for recovery of loans and further loaning was stopped or sealed withan immediate effect. Debtors till ranking high in social status had to come onroad barefoot.

9. 9. Explain what is referred to as the G-77 countries. In what ways can G-77be seen as a reaction to the activities of the Bretton Woods twins?

Or

What is G-77 ? What were its demands?

Ans. I. Meaning of the term G-77: Developing countries organized in a group ofseventy seven countries or G-77 when they saw and felt that upto two decades (viz. 1950sand 1960s) the Bretton Woods twins or kids (World Bank and IMF) had moulded all channelsto bring water only in fields of developed countries e.g. USA, Japan, France, Germany,Canada etc. Thus, G-88 came into being to safeguard interests of all developing nations.They demanded New International Economic Order (NIEO). By the NIEO, they meant asystem that would give them real control over their natural resources, more developmentassistance, fairer prices for raw materials, and better access for their manufactured goodsin developed countries markets.

1947. G-77 and the activities of the Bretton Woods twins :The IMF and the WorldBank are called Bretton Woods twins. They started their function in 1947.

(i) Dominant of USA :Decision-making in these institutions is controlled by thewestern industrial powers. The US has an effective right of veto over IMF and WorldBank’s key decision.

(ii) New International Monetary System :We know that international monetarysystem is the system linking national currencies and monetary system. The Bretton Woodssystem for this purpose was based on fixed exchange rates. In this system, nationalcurrencies, such as for example the Indian rupee, were pegged to the dollar at a fixedexchange rate. The dollar itself was anchored to gold at a fixed price of $35 per ounce ofgold.

(iii) Growth of Trade and Income :The Bretton Woods system inaugurated an eraof unprecedented growth of trade and income for the western industrial nations and Japan.World trade grew annually at over 8 per cent between 1950 and 1970 and incomes atnearly 5 per cent. The growth was also mostly stable, without large fluctuations. For muchof this period, the unemployment rate for example, averaged less than 5 per cent in mostindustrial countries.

(iv) Spread of Technology :These decades also saw the worldwide spread oftechnology and enterprise. Developing countries were in a hurry to catch up with theadvanced industrial countries. Therefore they invested vast amounts of capital, importingindustrial plant and equipments featuring modern technology.

(v) Role of IMF and World Bank :The IMF and World Bank were designed to meetthe financial needs of the industrial countries. They were not equipped to cope with thechallenge of poverty and lack of development in the former colonies. But as Europe andJapan rapidly rebuilt their economies, they grew less dependent on the IMF and the WorldBank. Thus, from the late 1950s, the Bretton Woods institutions began to shift theirattention more towards developing countries.

DISCUSS

Q.Find out more about gold and diamond mining in South Africa in thenineteenth century. Who controlled the gold and diamond companies? Who werethe miners and what were their lives like?

Ans. Gold was discovered in Johannesburg and diamonds in Kimberly (South Africa)in 19th century.

European migrants began mining gold and diamonds in South Africa. South Africawas producing world’s 27% gold from 1886 to 1914. Mining companies were controlled byEuropeans and Americans, as many of white settlers migrated to South Africa, desire ofmaking huge profits in the mining industry. They introduced technological advancesequipments and deep mining techniques so that profits could be increased. The workerson the mining fields were African natives, and most of them migrated of South Africa,from other parts and colonial states of African continents and they lived a miserable life.For example: They were paid ten times lower wages than the white workmen. The discoverof gold and diamonds in southern Africa led to apartheid (racism) from as early as 1889.

Cecil Rhodes was the first European to create a gold and diamond mining monopoly.Today ‘De Beers’, World’s largest diamond producing company.

1. Explain what we mean when we say that the World “shrank” in the1500s.

Ans. The word “Shrank” stands for increased interaction among the people of variouscontinents of the world. Pre- 1500, there was not much interconnectedness, trade andcommerce among the residents of various continents. Post- 1500, the commercial culturalexchange of ideas, etc. brought the continents close to each other.

1. Discuss the importance of language and popular traditions in thecreation of national identity?

Ans. Languages is one of the important factors which was responsible for the creationof national identity. A person is identified by his language and traditional practices. Peopleare born and due but language and traditions stay. They are always alive. They give anidentity to an individual, wherever he goes. Therefore, the language and popular traditionsare important in creating national identity of an individual.

1. Briefly summarise the two lessons learnt by economists and politiciansfrom the inter-war economic experience.

Ans. Followings are the two lessons learnt by economists and politicians from theinter-war economic experiences:

• Any industrial based on mass production cannot be sustained without massconsumption. To ensure mass consumption, there was a need for high and stableincome.
• The goal of full employment could only be achieved if govt. had power to controlflows of foods, capital and labour.

ADDITIONAL IMPORTANT QUESTIONS WITH THEIR ANSWERS

LONG ANSWER TYPE QUESTIONS

1. 1. What is Group 77? Why did Group 77 countries demand a NewInternational Economic Order? Explain.

Ans. I. G-77 : The group of 77 developing countries which organise themselves as aseparate group to get benefit from the fast growth of western economies experience bythem after Second World War in next twenty to twenty five years.

1. Causes of demand of NIEO:

• The Group 77 countries (developing countries) demanded a New InternationalEconomic Order to get real control on their own natural resources.
• To get more development assistance from advanced or western countries.
• To precure better or fair price for raw material.
• They also desired to obtained better access for their manufactured goods indeveloped countries markets.

2. 2. Explain the statement ‘the food travels throughout the world’ withexamples.

Ans. The statement that ‘food travels throughout the world’ is a historical fact.

• Trade in goods including foodgrains fetches long-distance cultural exchanges.Traders and travellers introduced new crops to the lands, they travelled. Evenrare foodstuff in distant parts of the world might share common origins. Take forexample, spaghetti and noodles. It is believed that noddles travelled West fromChina to become spaghetti. Or, perhaps Arab traders took pasta to fifth centurySicily e. an island now in Italy.
• Similar food also known in India and Japan are as ancient in India that theirorigins may never be known. Such guesswork suggests the possibilities of longdistancecultural contact even in the pre-modern world.
• Many of our common foods, such as potatoes, soya, groundnuts, maize, tomatoes,chillies, sweet potatoes, and so on were not known to our ancestors until aboutfive centuries ago. These foods were only introduced in Europe and Asia afterChristopher Columbus incidentally discovered the vast continent that was laterknown as the Americas including North America, South America and theCaribbean.

3. 3. Why has the indentured labour system in 19th century been describedas a new system of slavery?

Or

Nineteenth century indenture has been described on a new system of slavery.Explain three reasons.

Ans. (i) It was a world of faster economic growth as well as greater misery, higherincomes for some and poverty for others, technological advances in some areas and newforms of exploitation in others.

(ii) Most of the indentured workers migrated in hope for a bright future but they wereexploited by the recruiting agent and by the employer.

(iii) They had to pay a commission to the recruiting agent.

(iv) The agents used to provide false information to the workers regarding their finaldestination, modes of travel, the nature of work and living and working conditions.

(v) Sometimes agents even forcibly abducted less willing migrants.

4. 4. What was rinderpest ? How did rinderpest change the economic systemof the African society? Or

What was rinderpest ? State any four effects of rinderpest on Africa.

Ans. (i) The fast spread cattle disease is called Rinderpest. It was a type of cattleplague which destroyed cattle wealth of India.

Effects :

• Rinderpest arrived in Africa in the late 1880s. Within two years, it spread in thewhole continent reaching Cape Town (Africa’s souther most tips) within five years.
• The germs of the disease were carried by infected cattle imported from BritishAsia to feed the Italian soldiers invading Eritrea in Eastern Africa. The rinderpestkilled 90 percent of the cattle.
• The loss of cattle destroyed African livelihoods.
• Planters, mine owners and colonial governments now successfully monopolized what scarce cattle resources remained, to strengthen their power and to forceAfricans into the labour market.
• Control over scarce resourced of cattle enabled European colonizers to conquerand subdue Africa.

(ii) Large scale entry of the European powers in Africa: Spanish, Portuguese,French and Dutch began to settle in Africa. They wanted to hold larger farms, dig minesand plantations in Africa. They therefore, compelled African peasants to work as labourerfor them.

(iii) Exploitation of Africans as labourers: Europeans used many methods torecruit and retain labour. Heavy taxes were imposed which could be paid only by workingfor wages on plantations and mines. Inheritance laws were changed and only one memberof a family was allowed to inherit land while others were pushed into the labour market.Mine workers were also employed under strict vigilance and not allowed to move aboutfreely.

(iv) The cattle plague or rinderpest in Africa: Spread of animal diseases likerinderpest from Europe to Africa, also reveals how the world was shrunk in 1500s. Loss ofanimals left with native Africans no option but to start working as labourers to plantations,mines etc., acquired by Europeans.

5. 5. Explain the impact of the First World War on Britain.

Ans. (i) Post-war economic recovery proved difficult as the heavy expenditure on theWorld War I weakened the British economy.

• While Britain was preoccupied with war, industries had development in Japanand India. So now Britain had to face competition from these countries especially fromJapan.
• To finance war expenditures, Britain had borrowed liberally from the US. Thismeant that at the end of the war Britain was burdened with huge external debts.
• The war had led to an economic boom, e., to a large increase in demand, production,prices and employment. When the war boom ended production contracted andunemployment increased.

6. 6. Discuss the darker side of expanding international trade andglobalisation in late 19th century.

Ans. (i) Loss of Freedom and Livelihood: Trade flourished and markets expandedin the late nineteenth century. But this was not only a period of expanding trade andincreased prosperity. It is important to realise the darker side of this process. In manyparts of the world, the expansion of trade and a closer relationship with the world economyalso meant a loss of freedoms and livelihoods.

(ii) Division of Africa among imperialist powers :In 1885, the big Europeanpowers met in Berlin to complete the carving up of division of Africa between them.

(iii) Rise of colonial powers and sacrificing the interest of the colonialpeople :Britain and France made vast additions to their overseas territories in the latenineteenth century. Belgium, Germany and US also became a colonial power.

7. 7. How was the food problems solved in Britain after the scrapping of the‘Corn Laws’ ? Explain.

Ans. The food problem was solved in Britain after scrapping of the ‘Corn Laws’ takingthe following three steps :

(i) Foodgrains and eatable items were imported: After scrapping of the ‘CornLaws’, foodgrains, food items and various types of eatable items were imported. Theseitems were more cheap than these could be produced within Britain. The traders andmerchants of Britain started importing cheap food from Australia, USA, Russia an someother eastern European countries.

(ii) New shape was given to agricultural economy: (a) In Britain globalagricultural economy was implemented. Large scale imports of foodgrains shaped way forglobal agricultural economy.

(b) Food no longer came from a nearby town or village but from thousands of milesway.

(c) Large farms were created in Britain. These farms were cultivated with the help ofnew agricultural machines and tools. They (farms) were linked by railway, roads andwaterways.

(iii) Network of irrigation in colonies of Britain: The British colonial governmentin India and other colonies built a network of irrigation canals to transform semi desertwastes into fertile agricultural lands that could grow wheat and cotton for exports to Britain.

8. 8. Why was there a need for clearing lands in Britain during the 19^thcentury? Explain any three reasons.

Ans. There was a great need felt in Britain to clear land tracts due to various reasons.Out of those reasons only the three important reasons are explained as under:

(i) Increasing demand of foodgrains: Population in Britain at a very fast rate inthe late phase of 18th century. Due to high population the demands for foodgrains wentup. Tu fulfil the need for eatables, foodgrains, vegetables, fruits etc., land was cleared toexpand the area of farming.

(ii) Introduction and expansion of Railway: It was not enough merely to clearlands for agriculture. Railways were needed to link the agricultural regions to the ports.So land was cleared to lay new railway lines.

(iii) Homes and settlements :People had to settle on the lands to bring them undercultivation. This meant building homes and settlements.

9. 9. Discuss the main characteristics related with First World War timetransformation.

Ans. I. Main characteristics of the First World War time transformation :

(i) First modern industrial war :(a) The industrial interests of big powers gave itbirth. This war saw the use of machine guns, tanks, aircraft, chemical weapons, etc., on amassive scale.

(ii) Great shortage of men of working age: Due to the First World War, most ofthe killed and injured were men of working age. These deaths and injuries reduced theable-bodied work-force in Europe.

(iii) Women workers entered in service sector: During the First World Warperiod, industries were restructured to produce war-related goods. Entire societies werealso reorganised for war viz. men went to battle and women stepped into undertake jobs(in factories, offices, of several departments including schools, hospitals and so on).

(iv) Britain became a debtor and US became an international creditor: Thewar shattered the markets. Europeans’ earlier maintained agricultural production wasslumped. Money was borrowed from American Banks and US public.

10. 10. How did the First World War change the economic life of the people inBritain? Explain.

Ans. The changes occurred in Britain in the economic field after the FirstWorld War: The First World War had great impact on the economic life of Britain. Wecan explain this in the following points :

(i) Heavy expenditure: Britain had to fight in the First World War on severalfronts and areas. He has to bear very heavy expenditure during war years. Thepost war economic recovery proved very difficult for her. The world War Firstweakened the British economy.

(ii) Industrial competition from Japan: While Britain was preoccupied with war,industries had developed in Japan and India. So now Britain had to facecompetition from these countries especially from Japan.

(iii) Heavy loan burden of USA: To finance war expenditures, British had borrowedliberally from the United States. This meant that at the end of the war, Britainwas burdened with external debts.

(iv) Economic Depression: During war days prices of most of the commoditiesincrease. After the First World War several industrial units were close down.Unemployment increased. Exports of several items decrease. Some banks,insurance companies and financial institutions were force to declare themselvesbankrupt due to adverse impact of Economic Depression caused in USA from1929 to 1933.

11. 11. Discuss the impacts of the Great Economic Depression of 1929.

Ans. Impacts of Great Depression:

• Owing to withdrawal of loan by US, currencies like pounds/sterling collapsedand some major banks in Europe became bankrupt.
• in Latin America and elsewhere, it intensified the slump in agricultural and rawmaterial prices.
• The US attempt to protect its economy in the depression by doubling importduties also endured another severe blow to world trade.
• With the fall in prices and the prospect of a depression, US banks slashed domesticlending and called bank loans. Farmers could not sell their harvests, householdsruined and businesses collapsed.
• Faced with falling incomes, many households in the US could not repay whatthey had borrowed, and were forced to give up their homes, cars and otherconsumer durables.
• As unemployment soared, people trudged long distances looking for any work,they could find. Ultimately, the US banking system itself collapsed. Unable torecover investments, collect loans and repay depositors, thousands of banks wentbankrupt and were forced to close. By 1933, over 4,000 banks had closed andbetween 1929 and 1932 about 1,10,000 companies had collapsed.

12. 12. Describe the brief the destruction caused during the Second WorldWar.

Ans. The Second World War (1939-45) caused destruction maximum in the field ofhuman lives and property so far. We can discuss it under the following points briefly :

• At least 60 million people, or about 3 per cent of the world’s total population in1939, are believed to have been killed, directly or indirectly, as a result of thewar. Millions more were joined.
• Many more civilians than soldiers died from war-related causes g., Hiroshimaand Nagasaki of Japan.
• Vast parts of Europe and Asia were devastated, and several cities were destroyedby aerial bombardment or relentless artillery attacks.
• Perhaps the biggest impact of World War-II was that of Atom Bomb dropped inHiroshima and Nagasaki both till then densest populated regions in Japan. Ittook a toll of about 2.5 lakh people and similar number people are still sufferingfrom radiation related ailments.
• The war caused an immense amount of economic devastation and social disruption.Reconstruction promised to be long and difficult.

13. 13. Discuss the various items and export and import of India’s trade.

Ans. (i) India’s items of export : India exported cotton fabrics, jute products, coir,yarn, iron-ore, oil cakes, leather, leather-goods, engineering goods, chemicals, iron andsteel, tobacco, cashew kernels, tea, coffee, mica, manganese–ore, silk fabrics, footwear,vegetable oils, pearls and precious and semi-precious stones.

14. 14. What do you know about World Trade Organisation? Explain.

Ans. World Trade Organisation (WTO):

1. WTO was set-up by United Nations to promote international trade amongcountries.
2. Headquarter of WTO is located in Geneva.
3. It was established on January 1, 1995. Till January 2002, 144 countries were itsmembers.
4. It replaced General Agreement on Trade sand Tariff (GATT) which was establishedin 1948.
5. India became a member of WTO on January 1, 1995.
6. It significantly influenced the liberalisation process in the world.
7. WTO is based on principle of discrimination-free trade and promotion of faircompetition among member nations.
8. Its most of the rules were framed on the basis of persuasion and decisions takenby consensus. Ministerial Conference is its law making body but USA has saddlewith hegemony there.
9. WTO wants both import and export quotas to be abolished and countries to followmultinational agreements.
10. All members of WTO have adopted laws and policies in order to comply withWTO rules.
11. 15. Why liberalisation has been adopted in India? Mention freedoms givento private sector under it. Also enlist main measures undertaken for liberalization of economy in our country since 1991.

Ans. Causes of adoption of Liberlisation in India: India has-adopted liberlisationto achieve certain objectives. These are:

• To make free the Indian industry from needless and irksome controls.
• To upgrade technology and
• To develop international competitiveness.

Freedoms provided to private sector by liberalisation:

• Industrial licensing has been abolished except for five priority industries.
• Number of public sector industries has been reduced from 17 to 3.
• Freed from regulation like permission for importing raw materials.

Measures taken for liberalisation of India economy: Following measures havebeen taken for the liberalisation of Indian economy :

1. Abolition of Industrial Licensing and Registration.
2. Concession from Monopolies Act.
3. Freedom for expansion and production to industries.
4. Increase in investment limit of the small industries.
5. Freedom to import capital goods.
6. Freedom to import technology.
7. Free determination of interest rates.
8. 16. Describe the main changes that took place due to Liberalisation andGlobalisation.

Ans. We can classify the total changes that took place due to Liberalisation andGlobalisation into the following two categories:

(a) Visible Changes and

(b) Invisible Changes

(a) Visible Changes: 1. Better services in tele-communication sector, colour televisionsets and other electronic goods at low prices. 2. Market for cold drinks and food productstaken over by Pepsi, Coca-Cola.

(b) Invisible Changes:

1. India’s share in the trade of goods and services in the world has increased.
2. Investment from foreign countries increased from ` 174 crores in 1991 to ` 9,338crores in 2000.
3. We need foreign exchange to pay our imports (from ` 4,822 crores in 1991 to1,59,924crores in 2000).
4. New jobs created but not sufficient to meet all the needs, specially in the ruralsector.
5. Growth of industry not reached at its expected level.
6. 17. Describe any five measures of liberalisation taken by the Governmentof India.

Ans. Measures of liberalisation taken by the Government of India:

• Exemption of industries from licensing :The private sector has been freedto form all industries except a few from any kind of industrial licensing.
• Permission to import raw material from abroad :According to new economicpolicy the companies can import raw materials. In this case, governmentpermission is not required.
• Extending investment limit of small industries :The restrictions oninvestment by large business have been lifted.
• Doing away with the concept of MRTP :Now there are no MRTP companies.These companies can take their own investment decision and expansion plans.
• Expansion of industries :Now industries are free to expand themselvesaccording to the needs of market. Ceiling for capital has been abolished.
• Reduction in the number of industries reserved for public sector :Thenumber of industries reserved for public sector has been reduced from 7 to 3.

Now private sector can also enter in core industries like iron and steel, electricity,air transport, ship-building, heavy machinery and some defence goods.

SHORT ANSWER TYPE QUESTIONS

1. 1. Explain the concept “The making of Global World”. Why should we tryto understand the inter-connection between different regions of the world?

Or

What do you mean by the making of a global world? Why is it important tounderstand the mutual relation between various regions of the world?

Ans. I. The concept the making of a Global World: It denotes all trading activitiesdeveloped among countries of the world. Propagation of religion and culture and movementof people, goods, capital that takes place when each set of two countries in the world joinseach-other through exchange of goods or trading.

1. Importance of understanding inter-connection among various regions ofthe world:

(i) Global Trade: In order to develop our knowledge over global trade and commerceincluding changes that take place on account of intercourse among differentcultures of the world.

(ii) Tourism: An individual’s journey to become a member of global society helpsused understanding balanced ideologies of universal nature in our preparationto become cosmopolitans.

2. 2. What is trade? Explain the meaning of international trade as well asstate-level trade.

Ans. (i) Meaning of term ‘Trade’: Exchange of goods or services between partiesi.e., people, states and countries.

(ii) International Trade: Trade between two countries called international trade.

(iii) State Level Trade: Trade carried on between two or more states is a state leveltrade.

Q.3. What is known as the Balance of Trade? Distinguish between favourableand unfavourable balance of trade.

Ans. Meaning of term “Balance of Trade”: The difference between exports andimports in known as balance of trade.

Difference between favourable and unfavourable between of trade: If thevalue of exports is more than the value of imports, it is called favourable balance of trade.

4. 4. Define the concept of:

(a) Market           (b) Economic barometer.

Ans. (a) Market: A market is a place where the exchange of goods takes place. Atthis place generally several sellers and many customers bargain. They sale and purchasevarious articles and services also.

(b) Economic barometer: Advancing international trade of a country leads to itseconomic prosperity and is therefore, considered to be the economic barometer of a country.

5. 5. Why can the First World War be termed as first modern industrialwar? Given three reason.

Ans. It is called an account of following reasons :

• It saw the use of machine guns, tanks, aircrafts etc., which were all products ofmodern large scale industries.
• The scale of total death and destruction was very trade.
• To carry millions of soldiers, large warships and railway trains were requiredwhich could be manufactured in large scale industries.

6. 6. Differentiate between the following pairs of words/terms:

(a) Foreign trade and domestic trade.    (b) Imports and exports.

Ans. (a) Foreign trade Domestic trade:

Foreign trade: When our country exchanges goods or machines with another country it is knownas foreign trade or international trade.

Domestic trade :When the commodities are sent within thecountry it is called domestic or interstatetrade.

(b) Imports and exports:

Imports: Imports are made to meet the essential requirements of domestic consumption,investment,production and inputs for.

Export: Surplus production is sent outside thecountry to earn foreign exchange in export side of international trade of a country.

7. 7. Define the concept bilateral trade and multinational trade.

Ans. Bilateral Trade: It is an exchange of commodities between two countries e.g.,trade between India and U.K.

Multinational Trade: This is the process that makes possible the exchange of goodsand services among a number of countries.

8. 8. What do you mean by the term GPL?

Ans. The GPL stands for Globalisation, Privatisation and Liberalisation. We can explainthese three words/terms in the following way :

(i) Globalisation: Merger of economy of individual countries into global economy.

(ii) Privatisation: Ownership, control and management of private sector on almostall erstwhile public sector (phase-wise).

(iii) Liberalisation: Removal of trade barriers by relaxation of trade laws, importsetc. For example, creation of SEZs, with making labour laws lenient so as to giveway to contract/indentured labour system.

Q.9. Name the three international institutions that work for theimplementation of Globalisation.

Ans. The three international institutions are :

• International Monetary Fund (IMF)
• World Bank
• WTO

10. 10. State the basic and main objectives of New Economic Policy.

Ans. Main objectives of the New Economic Policy:

• It was to reduce domestic inflation and improve the balance of payment.
• To improve efficiency and productivity and put the economy back on the path ofgrowth with social justice.

11. 11. Define liberalisation. Mention two components of liberalisation/

Or

What is Liberalism ? Describe it’s two component in brief.

Ans. Liberalisation: It is condition of relaxation of all rules and regulationsrestricting earlier, the growth of the private sector.

Two components of Liberlisation:

• It allows private sector to run those industrial activities, restricted earlier topublic sector.
• The relaxation of all rules and regulations, which restrict the growth of privatesector.

12. 12. What do you know about WTO ? Write about it in brief (short).

Ans. WTO: It stands for World Trade Organisation. It was set-up in 1995 at Geneva,Switzerland. There was an international institution already working as an organization of the UN. It was called GATT—General Agreement on Tariffs and Trade. GATT was anold organisation set-up in 1947 just after two years of the birth of UNO. In this way WTOreplaced GATT in 1995. Since then it is working independently, though attached with UN,upto some extent.

13. 13. Briefly discuss the merits of globalisation and write three steps whichhave been taken by government to promote it in India.

Ans. Merits of Globalisation:

• It helps in free flow of goods and services across the world due to reduction intrade barriers.
• Free flow of technology and experience.
• Free flow of capital among the world nations.
• It helps up to some extent in free flow of labour to different countries of theworld.

Steps taken by Government of India to promote Globalisation:

1. To promote globalisation and liberalisation, trade barriers have been lifted up bythe Government of India since 1991 C.E. It is free trade policy adopted underpressure of Ministerial Conference (law making body) of World Trade Organisation(W.T.O.) viz. an agency of United Nations Organisation (U.N.O.).
2. We are exchanging technology and experience with several countries of the world.
3. Restrictions on imports and exports of goods have been minimised. For example,taxes on imported goods have been reduced.
4. Central as well as state governments are encouraging investors from abroad toinvest in India.
5. 14. How did Silk Routes link the world? Explain with three suitableexamples.

Or

Describe any three features of Silk Routes.

Ans. Role and importance of Silk Routes in linking the world :

• The Silk Routes are a good example of vibrant pre-modern trade and culturallinks between distant parts of the world.
• The name ‘Silk Routes’ points to the importance of west-bound Chinese silk cargoesalong this route.
• Historians have identified several silk routes, over land and by sea, knittingtogether vast regions of Asia and linking Asia with Europe and northern Africa.

They are known to have existed since before the Christian Era and thrived almosttill the fifteenth century. But Chinese pottery also travelled the same route, asdid textiles and spices from India and Southeast Asia. In return, precious metals– gold and silver – Flower from Europe to Asia.

15. 15. Describe three types of flows or movements identified by the economists.What were the effects of these flows.

Ans. Three types of flows or movements: These are : (i) Flow of trade (especiallytrade in goods), (ii) Flow of labour, (iii) Flow or movement of capital.

Effects of three types of flows: All three flows were closely interwoven and affectedpeople lives more deeply than ever before. The interconnections could sometime be broken–for example restriction on more labour migration than goods or capital flows. Yet it helpsus understand, the nineteenth-century world economy better to look at the three flowstogether.

16. 16. Write a short note on Indian entrepreneurs settled abroad.

Ans. (i) Some Indian bankers were ShikaripuriShroffs and NattuKottaiChettiars.They financed either their own funds or borrowed funds from bankers in Europeancountries. On exports of agricultural product, they also financed corporate offices ororganisations in India. They financed in export of agricultural produces from Central andSouthest Asia.

(ii) Traders and moneylenders of India like Hyderabadi Indian traders opened theiremporia or offices for sale in bulk quantity in almost all seaports of colonies all over Europeand Africa. They used to sell local agricultural produces, handicrafts, curios and antiquity.

17. 17. Write any characteristics of India’s foreign trade. Also mention mainitems of exports of India.

Ans. Characteristics of India’s Foreign trade:

1. India’s foreign trade is characterized by a great variety in its composition.
2. Export is composed of a wide range of items from agricultural to industrial sector.
3. Computer software exports have also increased significantly.
4. 18. Enlist the reasons because of which need for new economic policy wasfelt in India. Also write its objectives.

Ans. I. Reasons prompted the need of NEP:

1. Increase in fiscal deficit,
2. Increase in deficit of balance of payment.
3. Gulf crisis.
4. Fall in exchange reserves.
5. Rise in prices.
6. Poor performance of public sector undertaking.
7. Main objectives of NEP:
8. Liberalisation of the economy.
9. Dispensing with too many controls.
10. Expansion of private sector.
11. Encouragement of private foreign investment.
12. Modernisation of agriculture.
13. Controlling fiscal deficit.
14. 19. What were the aspects of New Economic Policy adopted in India?

Ans. 1. A process of economic reforms was started here in July 1991. The main thrustof the new economic policy was on liberalisation, privatization and globalisation of theeconomy.

2. All except four industries have been delicenced. The limit of maximum investmentof ` 100 crores by a company has been removed. Most of the restrictions put on directforeign investment have been removed.
3. Limits on users of foreign exchange have been liberalized. As a step towardsprivatisation, newer and newer areas are being opened for private sector.
4. Now only five industries are reserved for public sector. As a step towardsglobalisation, the domestic industry is being exposed to competition with multinationalcompanies. Imports of capital goods and technology is allowed.
5. 20. What are the monetary reforms under the New Economic Policy?

Ans. Under the new economic policy, several steps have been taken. On therecommendations of Narasimham Committee, following reforms have been adopted :

1. Abolition of direct credit programme.
2. Free determination of interest rate.
3. Reconstitution of baking system.
4. More freedom to banks.
5. Improvement in accounting system.
6. Reduction in liquidity ratio.
7. 21. Discuss the positive aspects of globalisation and liberalisation.

Ans. Some Positive Aspects of Globalisation and Liberalisation:

• Globalisation and liberalisation have helped in rapid economic development. Alarge industrial base created and industrial production increased.
• Reduction in proportion of people living below the poverty line.
• Self-sufficiency in food achieved.
• Savings mobilised.
• Resources for development generated.
• A large pool of scientists and technically skilled persons formed.
• Export-oriented units established.

22. 22. Write any three negative aspects of liberalisation and globalisation.

Ans. Negative Aspects of Liberalisation and Globalisation: (i) Rate ofunemployment increased below expectations (ii) Growth rate declined to 4% per annum(2002-2003) from 8% in (1972-73) (iii) The laws failed to reduce concentration of economicpower in the private sector (iv) Public sector enterprises ran in severe losses to the tune of203 crore due to corruption, inefficiency and ineffective management.

23. 23. What is the role of WTO? What two benefits will India get by being amember of WTO?

Ans. WTO aims at conducting international trade among countries of the world in anopen, uniform and non-discriminatory manner. The benefit of being a member of WTOparticularly to India, is very limited.India can avail the opportunities for world trade without any restrictions according tothe norms of WTO. Similarly, India can export the agricultural commodities in world marketand can avail all the advantages like other countries.

24. 24. Write any three factors responsible for indentured labour migrationfrom India.

Ans. The main characteristics of indentured labour (bonded labourer under contractto work for his or her employer for specific period of time) migration from India are thefollowing :

• Domination and slavery was witnessed in the world order. Europeans becamemore and more wealthy while natives of Asian and African countries sufferedmisery, exploitation and poverty all simultaneously.
• It refers to large scale of labour flow or migration to the West from the East of theworld. Contract labour system emerged.
• It reveals decline in cottage industries in India, increase in rates of land revenueand displacement of peasants by Europeans to instal large scale industries there.Problems likewise created by Europeans in India, pressed Indian peasants tomigrate other countries as indentured labourers.
• It exhibits that labour demand was higher in Trinidad, Guyana and Surinam(Caribbean islands) and Mauritius and Fiji.
• Middlemen emergence can be seen during slave trade and contract labour systemadopted by Europeans. Slavery was all apparent from the behaviour made by theBritish plantation owners and miners with indentured labourers being contractperiod.

25. 25. What were the main sources of attraction for Europeans to come toAfrica in the late nineteenth century ? How did they exploit their resources?

Ans. Main sources of attraction for Europeans in Africa were:

• Europeans were attracted to Africa due to its vast resources of land and minerals.
• Europeans came to Africa hoping to establish plantations and mines to producecorps and minerals for export to Europe.
• Inheritance laws were changed so that peasants were displaced from land : onlyone member of a family was allowed to inherit land, as a result of which theothers were pushed into the labour market.
• Europeans divided different regions of Africa among themselves.

26. 26. Explain the role of technology in shaping the world economy of the19th century.

Ans. (i) Changes in transport and communication: Technology played a majorrole in all these developments. Railways, steam shipping, telegraph – were importantinventions without which it was not possible to imagine the transformation of nineteenthcentury world.

(ii) Link in various markets of the world: New investments and improvementsin transport; faster railways, lighter wagons and larger ships helped move food more cheaplyand quickly from far away farms to final markets.

(iii) Impact on the meat trade: Till the 1870s, meat from America was shipped toEurope sin the form of live animals which were then slaughtered in Europe. But liveanimals took up a lot of ship space. Many also died in voyage, fell ill, lost weight, or becameunfit to eat. So the prices of meat were very high and it was beyond the reach of theEuropean poor. Due to high price, the demand and production was low. But the inventionof refrigerated ships made it possible to transport meat from one region to another.

VERY SHORT ANSWER TYPE QUESTIONS

1. 1. What does the concept trade refer to?

Ans. It refers to move or carry a person, goods, baggage etc., for value addition andprofit making motive.

2. 2. What is International Trade?

Ans. The trade between two or more countries/nations is called International Trade.

3. 3. What is State level trade?

Ans. The trade carried between two or more state with in the national boundary iscalled state level trade.

4. 4. Which are two essential component of trade?

Ans. Two essential component of trade are Export and Import.

5. 5. Define the concept balance of trade.

Ans. Difference between the total value of export and import is called balance of trade.

6. 6. What is called favourable Balance of Trade?

Ans. If the value of export is more than import is called favourable trade.

7. 7. How was the trade carried out in pre-modern days?

Ans. It was carried out on Silk route. Which is now famous Trade routes.

8. 8. What was a cowries ?

Ans. It is a type of form of currency.

9. 9. What did the concept ‘cowries’ mean?

Ans. The meaning of concept cowries is a seashell or cowdi in Hindi.

10. 10. Write one good example of vibrant pre-modern trade and why?

Ans. Silk route, because it connect the distant path of world.

11. 11. Which two precious metal flow from Europe to Asia in lieu of export oftextile and species ?

Ans. These two metal which flows as a trade of species and textile from Europe toAsia were- Gold and Silver.

12. 12. Define the concept Trade Surplus.

Ans. The concept ‘Trade Surplus’ refers to a situation under which the value of exportis more than that of import.

13. 13. List some common food items which were known to our ancestor untilabout five centuries ago?

Ans. These food item include potatoes, soya, groundnuts, maize, chilies, tomatoes,Sweet potatoes etc.

14. 14. Which was the most famous sea discovery of Columbus?

Ans. The most famous sea route discovery of Columbus was the continent of America.It was also known as Dark continent.

15. 15. Which country did not try to expand food production to meet theBritain’s demand ?

Ans. Japan did not try to expand her food production to meet the demands of Britain.

16. 16. Who were the first Europeans to conquer America?

Ans. The Spanish were the first European to conquer America.

17. 17. What were the Corn Laws?

Ans. The Laws passed by the British Government to restrict the import of corn wereknown as Corn Laws.

18. 18. Who worked in the plantations set-up in America by the Europeannations?

Ans. The Slaves from Africa worked as the plantation set-up in America by Europeannation.

19. 19. What is a market?

Ans. A place where goods are sold and purchased is called market.

20. 20. The full term of W.T.O is.

Ans. The full term of abbreviation W.T.O. is World Trade Organisation.

21. 21. Which city is known as fabled city of gold?

Ans. E1-Dorado which is South America is known as fabled city of gold.

22. 22. Which was the most powerful weapon used by the Spanish to conquerAmerica.

Ans. The most powerful weapon used by Spanish to conquer America was the germssuch as of the smallpox.

23. 23. Who was John Winthrop?

Ans. He was the first governor of Massa chusetts Bay Colony New England.

24. 24. Who is referred to as a dissenter?

Ans. A person who refuse to accept established beliefs and practices are referred to asa dissenter.

25. 25. Which new economic policy is followed by government of India since1981 ?

Ans. The policies followed by India since 1981 includes :

• Policy of Liberalisation.
• Policy of Privatisation.
• Policy of Globalisation.

26. 26. Upto the 18th century, which two countries among the following werethe richest countries of the world?

Ans. India and China were the richest countries among the world.

27. 27. Name the member of the Allies power during the “First World War”(1914–1918).

Ans. Britain, Japan, France and USA were Allies power during the first world war.

28. 28. Which new invention made it possible to transport perishable fooditems over long distances?

Ans. The invention of Refrigerated ships made it possible to transport perishable fooditems over long distance traveller.

29. 29. Define the Concept ‘Indentured Labour’.

Ans. A bounded labour under contact to work for an employer for a specific amount oftime, to pay off his passage to a new country on time.

30. 30. What was Rinderpest?

Ans. The fast spread cattle disease was called Rinderpest.

31. 31. Write one good example of widespread European imperial impact oncolonised societies.

Ans. The Spread of Rinderpest was the example of wide spread impact of Europeancolonial policy on society.

32. 32. Name some destination of Indian indentured labour.

Ans. Uttar Pradesh, Bihar, Central India and dry distnicts of Tamil Nadu were themajor destination of Indian indentured labour.

33. 33. What were the destination of Indian indentured migrant?

Ans. Trinidad, Guyana, Surinam, Maurities and Fiji are major destination of Indianindentured migrant.

34. 34. Where was Chutney music Popular?

Ans. It was popular in South American States of Trinidad an Guyana.

35. 35. Who works the implementation for Globalisation?

Ans. IMF, World Bank and WTO works of the implementation of Globalisation.

36. 36. When did adopt New Economic reforms (NEW)?

Ans. India adopted new economic reform in 1991.

37. 37. What does NIEO stand for?

Ans. NIEO stands fer New International Economic Order.

38. 38. What do you mean by G-77?

Ans. G-77 (Group-77) refers to the group of 77 developing countries which did notbenefits from the fast growth which western economies expeneries in 1950s.

39. 39. Name the countries who were the parts of Axis power during 2nd worldwar.

Ans. Japan, Italy and Russia were the Axis powers during 2nd World War.

40. 40. What was the human loss in the Second World War?

Ans. The total loss of human lives during 2nd world war estimated around nearlysixty million.

41. 41. Which factors were responsible for price rise of foodgrains in Britainin late nineteenth century was/were?

Ans. The factor responsible for the rise of foodgrainswere :

• Increasing demand for agricultural products.
• Increasing demand of foodgrains.
• Increasing population.

42. 42. List some of few food items that travelled from far away places toIndia.

Ans. (i) Tomato and sweet potatoes

(ii) Potatoes and groundnuts

(iii) Maize and chillies.

43. 43. What were the reasons of migration of the Europeans to America untilthe nineteenth century?

Ans. The reason for migration were:

• Widespread diseases
• Poverty and hunger that gripped Europe
• Overcrowded cities

44. 44. What were the impact of the germs on the America’s original inhabitants?

Ans. The germs killed and decimated whole communities of land and minerals.

45. 45. Why were Europeans attracted to Africa in the late nineteenthcentury?

Ans. They attracted to Africa due to the vast resources of land and minerals.

46. 46. List the factors that were forced the Indian indentured workers tomigrate.

Ans. These factors were :

• decline of cottage undustries
• raised land rents
• debt trap and hope of better future.

47. 47. What is common among V.S. Naipaul, ShivnarainChandrapaul andRamnareshSarwan?

Ans. They all are of Indian origin.

48. 48. Why did China became an attractive destination for investment byforeign MNCs?

Ans. China became an alternative destination due to abundance of cheap labour.

49. 49. The two world powers that emerge after Second World War and shapedthe post war reconstruction?

Ans. The US and Soviet Union.

50. 50. Which was the fabled city of gold?

Ans. El Dorado was the fabled city of gold.

vvv

 

 

 

MULTIPLE CHOICE QUESTIONS

 

1. Which routes connected various parts of Asia with one another and Asiawith Europe and northern Africa?

(a) Silk routes                                                       (b) Cereal routes

(c) Technical routes                                              (d) Spice routes.

Ans. (a) Silk routes.

2. What helped in long distance cultural exchange?

(a) Jewellery                                                         (b) Food items

(c) Clothes                                                            (d) Trade.

Ans. (b) Food items.

3. How many types of flows or movements were there in 19th century withininternational economics exchange?

(a) Three                                                              (b) Five

(c) Four                                                                (d) Six.

Ans. (a) Three.

4. Who played a great role in the making of a global world?

(a) Trade                                                              (b) Exchange of goods

(c) Ships                                                               (d) Technology.

Ans. (d) Technology.

5. When did Columbus discover America?

(a) 1492                                                               (b) 1488

(c) 1482                                                                (d) 1498.

Ans. (a) 1492.

6. When did the Great Irish Potato Famine take place?

(a) 1840-1845                                                      (b) 1845-1849

(c) 1846-1851                                                      (d) 1850-1855.

Ans. (b) 1845-1849.

7. When did the system of indentured labour migration get abolished?

(a) 1914                                                               (b) 1918

(c) 1921                                                                (d) 1927

Ans. (c) 1921.

8. When did the Great Depression begin and end?

(a) 1925-29                                                          (b) 1926-30

(c) 1928-32                                                          (d) 1929-33.

Ans. (d) 1929-33.

9. When did the IMF and the World Bank start their financial operations?

(a) 1947                                                               (b) 1952

(c) 1953                                                                (d) 1949.

Ans. (a) 1947.

10. What was Rinderpest?

(a) An animal disease                                           (b) A cattle plague

(c) A type of dogs                                                            (d) A breed of horses.

Ans. (b) A cattle plague.

11. What was the other name of group of 77 developing countries?

(a) M–77                                                              (b) EU–77

(c) G–77                                                               (d) ASEAN.

Ans. (c) G–77.

12. What was Chutney music?

(a) Music popular in India                                    (b) Music popular in Trinidad and Guyana

(c) Music poplar in America                     (d) Music popular in England.

Ans. (b) Music popular in Trinidad and Guyana.

 

vvv