Part - 1 CH - 8 International Trade — Geography STD 12 Humanities — Question
CBSE BoardEnglish MediumSTD 12 HumanitiesGeographyPart - 1 CH - 8 International Trade5 Marks
Question
Explain different aspects of international trade.
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Answer
International trade has three important aspects. These are volume, sectoral composition and direction of trade.
Volume of Trade: The actual tonnage of goods traded makes up the volume. However, services traded cannot be measured in tonnage. Therefore, the total value of goods and services traded is considered to be the volume of trade.
Composition of Trade: It refers to the items of which trade consists of. The nature of goods and services imported and exported by countries have undergone changes during the last centuiy. Trade of primary products was dominant in the beginning of the last centuiy. Later manufactured goods gained prominence. Service sector which includes travel, transportation and other commercial services have been showing an upward trend
Direction of Trade: It refers to the countries with which a country has trade relations. Like India’s majority of trade was with UK during colonial rule. The developing countries of the present used to export valuable goods and artefacts, etc., which were exported to European countries. During the 19th century there was a reversal in the direction of trade. European countries started exporting manufactured goods for exchange of foodstuffs and raw materials from their colonies. Europe and U.S.A. emerged as major trade partners in the world and were leaders in the trade of manufactured goods. The world trade pattern underwent a sea change during the second half of the twentieth century. Europe lost its colonies while India, China and other developing countries started competing with developed countries.
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