Choose the right answer from the four alternatives given below.
Trade between two countries is termed as
A. Internal trade
B. External trade
C. International trade
D. Local trade
Internal, as well as, local trade happens within the geographical expanse of a country.
External trade refers to the total trade a particular country has with the rest of the world.
International trade refers to the trade between two (or more) countries, though bilateral trade have been a better term.
Choose the right answer from the four alternatives given below.
Which one of the following is a land locked harbour?
A. Vishakhapatnam
B. Mumbai
C. Ennor
D. Haldia
Vishakhapatnam Port in Andhra Pradesh is a land-locked harbour, connected to the sea by a channel cut through solid rock and sand.
Choose the right answer from the four alternatives given below.
Most of India’s foreign trade is carried through
A. Land and sea
B. Land and air
C. Sea and air
D. Sea
The land connectivity India has with her neighbouring countries is less and is often through inhospitable regions. Hence, land is not a prominent means by which India’s trade happens. (Thus, option A. and option B. are ruled out)
Sea alone can’t suffice to transport India’s exports, which include perishable materials which can only be transported through the air. (Thus, option D. is ruled out).
Hence, option C. Sea and Air is the answer.
Choose the right answer from the four alternatives given below.
Which one of the following is India’s largest trading partner (2010-11)
A. U.A.E.
B. China
C. Germany
D. U.S.A.
Based on the Economic Survey tabled in the Lok Sabha by the Finance Minister on 25th February 2011, U.A.E has become India’s largest trading partner, followed by China. The U.S.A, which was in first position in 2007-08, has been relegated to the third position in 2010-11.
Answer the following questions in about 30 words.
Mention the characteristics of India’s foreign trade.
The characteristics of India’s foreign trade has changed over the years. Over the years, there has been an increase in the total volume of import and export, yet the value of import continues to be higher than that of exports.
Answer the following questions in about 30 words.
Distinguish between port and harbour.
A port is a man-made artificial structure for boats and vessels to dock, whereas harbours are natural locations where docking of sea-going vessels are possible without much altering of the landscape. In addition, ports are commercial in nature where international trade takes place. Harbours are, generally, areas where sea-going vessels are stored/anchored.
Answer the following questions in about 30 words.
Explain the meaning of hinterland.
Hinterland refers to the area which is further inland, and usually away from the coast or the banks of major rivers. In general, these regions are richly endowed with natural resources.
Answer the following questions in about 30 words.
Name important items which India imports from different countries.
Important items India imports from different countries are:
1. Fertilisers
2. Petroleum and petroleum products
3. Machine and equipment
4. Special steel
5. Edible oil
6. Chemicals
7. Electronic goods
Answer the following questions in about 30 words.
Name the ports of India located on the east coast.
The ports located in the East Coast of India are:
1. Kolkata Port
2. Haldia Port
3. Paradwip Port
4. Vishakhapatnam Port
5. Chennai Port
6. Ennore Port
7. Tuticorin port
Answer the following questions in not more than 150 words.
Describe the composition of export and import trade of India.
Composition of India’s trade with the rest of the world has never remained a constant. Though the composition of trade has undergone changes, the volume of imports continued to be higher than that of exports.
In terms of export commodities. The share of agriculture and allied products has declined, whereas, shares of petroleum and crude products and other commodities have increased. The shares of ore minerals and manufactured goods have largely remained constant since 2009-10. Tougher international competition has resulted in the decline of export of traditional items.
Manufacturing sector wins in terms of total value of export, accounting for about 73.6%. Engineering goods have shown significant growth too.
In terms of import commodities. The earlier foodgrain import was replaced by fertilisers and petroleum. Machine and equipment, special steel, edible oil and chemicals constitute the largest share in India’s import basket. Petroleum has seen a steep rise in import as it is used not just as a fuel but also a raw material in many industries. Pearls and semi-precious stones, gold and silver, metalliferous ores and metal scrap, non-ferrous metals, electronic goods, etc. forms the other major import commodities.
India keeps a net imbalance in terms of foreign trade in commodities, however India’s potential lies in the service sector. India has never been able to fully industrialise its economy, from primary activities (in the 50’s) India’s economy has directly jumped to become a service-dominated economy (by the 1990’s). India has a net positive balance in the in the international exchange of services, which more than offsets the negative balance in commodities.
Answer the following questions in not more than 150 words.
Write a note on the changing nature of the international trade of India.
The nature of India’s foreign trade has changed over the years. Though there has been an increase in the total volume of import and export, the value of import continued to be higher than that of exports.
Agriculture and its allied sectors saw a rapid decline in India’s export basket due to tougher international competition in products like coffee, cashew, etc., though an increase has been registered in floricultural products, fresh fruits, marine products and sugar.
Manufacturing began to steer India’s export direction, with the sector alone accounting about three-fourth in terms of total value of exports (in 2016-17). In the exporting market, China and other East Asian countries are the major competitors of India.
The food crises in the year after Independence were managed by import of foodgrains. Thanks to the success of the Green Revolution, foodgrain import was discontinued after the 1970s. Capital goods, machinery and equipment still makes up a large share of India’s import basket.
Foodgrain import was replaced by fertilisers and petroleum. Special steel, edible oil and chemicals being the other commodities. The import of petroleum products has witnessed a sharp increase, as it is not just a fuel but raw material in various industries in India. Non-electrical machinery, transport equipment, manufacturers of metals and machine tools were the main items of capital goods. Pearls and semi-precious stones, gold and silver, metalliferous ores and metal scrap, non-ferrous metals, electronic goods, etc. forms the other major import commodities.