Monthly Archives: January 2022

In This Post we are  providing  CHAPTER 4 DISTRIBUTION OF OCEANS AND CONTINENTS NCERT MOST IMPORTANT QUESTION for Class 11 GEOGRAPHY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON DISTRIBUTION OF OCEANS AND CONTINENTS

Question 1.
How do lithosphere plates behave along the transform fault?
Answer:
The lithospheric plates slide over each other, neither creating nor destructing any landmass. Instead, the. friction arising from the movement of the plates usually causes severe earthquakes and earth tremors.

Question 2.
Why do geographers focus their attention on plate boundaries?
Answer:
Geographers focus their attention on plate boundaries because each plate is a tectonic plate. It is rigid and moves as a single unit. Nearly all major tectonic activity occurs along the plate boundaries.

Question 3.
What does the term ‘supercontinent’ refer to?
Answer:
The term ’supercontinent’ refers to a single common geological landmass called Pangaea. It has been proposed that all landmasses of the world had formed from this ‘supercontinent’. Pangaea had evolved some 280 million years ago, at the end of the Carboniferous period and by mid-Jurassic age, 150 million years ago. Pangaea land split into Laurasia, the northern continent, and Gondwanaland, the southern continent. About 65 million years ago, i.e. at the end of the cretaceous, bound mainland were further broken up to give rise to several other continents such as South America, Africa, Australia, and Antarctica.

Question 4.
Discuss the causes of plate movement.
Answer:
Sub-crustal convection currents invoke the mechanism of thermal convection that acts as a driving force for the movement of plates. Hot currents rise, then cool as they reach the surface. At the same time, cool currents sink down. This convectional movement moves the crustal plates. .. Owing to current movements, the rigid plates of the lithosphere, which ‘float’ on more mobile asthenosphere, are in constant motion.

Question 5.
What is a geological time-scale?
Answer:
The chronology of the geological history’ of the earth is revealed by its rocks. Geological time scale indicates the hierarchy of time periods during which different rocks of the earth have formed.

Question 6.
What do you mean by ‘jig-saw-fit’? Describe the similarities found on the east and west coasts of the Atlantic ocean. What do they suggest?
Answer:
The ‘jig-saw-fit’ means the landmasses on the east and west coast of the Atlantic ocean can be fitted together. There are many similarities found on the two coasts :

1. The Gulf of Guinea can be fitted into Cape San-Rogue of Brazil, the shoulder of Africa can be fitted into Gulf of Mexico, Western Europe and Eastern coast of North America along with Greenland can be fitted together.
2. Gold deposits of Ghana lands are found on the east and in Brazil on the west.
3. The glacial deposits are found in all landmasses of Gondwana land.

These similarities suggest that these continents were together in the geological past.

Question 7.
Discuss the Continental Drift Theory.
Answer:
Continental Drift Theory was proposed by Alfred Wegner in 1912. He postulated that all landmasses of the world have been formed from one super-continent called Pangaea.

The supercontinent, Pangaea, had evolved some 280 million years ago, at the end of the Carboniferous period and by the mid-Jurrasic age, 150 million years ago. Pangaea had split into a northern continent, Laurasia, and a southern continent Gondwanaland. About 65 million years ago, i.e., at the end of the Cretaceous, Gondwanaland further broke up to give rise to several other continents, such as South America, Africa, Australia, and Antarctica. Thus, the present distribution of the continental masses and the oceans are the n .uit of fragmentation of one or more pre-existing masses. These landmasses have drifted apart the intervening hollows having been occupied by the oceans.

There are several pieces of evidence that suggest the existence of Pangaea. This evidence is available in the form of geological watching, palaeoclimatic units, and paleomagnetism.

Question 8.
Describe sea-floor spreading in brief.
Answer:
The present distribution of continents has taken place in the last 65 million years. The drift of continents still continues. The ridges down the middle of ocean floors have been emitting lava continuously. Those mid-oceanic ridges are cracks on the floor of the ocean where molten rocks push up to form a new crust. The crust spreads among the ridge and the ocean basin widens. This phenomenon is known as sea-floor spreading. The Atlantic ocean is getting smaller and the Red Sea is the part of a crack in the crust that will widen to produce new ocean millions of years ahead in the future. In the past, the widening of the South Atlantic ocean has separated Africa and South America.

Question 9.
Explain the plate tectonic theory and its mechanism.
Answer:
Plate tectonic theory proves that the earth’s crust consists of several plates that carry continents and the ocean floors and float on the asthenosphere, moving very slowly, the movement probably resulting from currents in the asthenosphere. As shown in fig., the lithosphere is broken into seven major plates. They include :

1. Pacific plate
2. Eurasian plate
3. Indo-Australian plate
4. African plate
5. North American plate
6. South American plate
7. Antarctic plate

The latest among these is the Pacific plate which is composed of oceanic crust almost entirely. The other plates have both continental and ocean crust. No plate consists of only continental crust. Plates range in thickness from about 70 km. beneath oceans to 150 km. under continents. Each tectonic plate is rigid and moves on a single unit. Nearly all major tectonic activities occur along the plate boundaries.

Based on the relative motion of plates, three kinds of plate boundaries have been recognized. They are :
1. Zones of divergence: These are boundaries along which plates separate and in the process of separation molten materials upwell. This is commonly observed along linear ocean edge where the new lithosphere is created in the form of new ocean floors. Active volcanism and shallow focus earthquakes make such boundaries,

2. Zones of convergence: There are the boundaries along which, the edge of one plate overrides the other. The overridden plate slips down into the mantle and is absorbed. This process is known as subduction.

3. Fracture zones or Transform faults: The plates slide past each other effect creating or destructing the boundaries. However, shallow focus earthquakes may result due to this friction.

Question 10.
Describe the main features of the Indian plate.
Answer:
Indian ocean floor presents striking topography consisting of a number of elevated ridges and plateaus. Two of the ocean ridges, namely, the Mascarene Plateau, Chagos-Maldweep-Lakshadweep island ridge are said to be the volcanic tracts of two hot spots. The Northward extension of Ninety-east Ridge indeed in the trench which consumed the seafloor to the north of the Indian continental mass. The Chagos- Lakshadweep ridge linked the ancient Carlsberg ridge with the Southeast Indian ridge during the Eocene period (50 million years ago).

Consequent to the Carlsberg-Southeast Indian ocean ridge, the collision between the Indian plate and the Eurasian plate took place north of the Indian plate giving rise to the Himalayas. The suture between Indian and Eurasian plates in the Himalayan region has been along the Indus and Brahmaputra rivers.

In This Post we are  providing  CHAPTER 7 LANDFORMS AND THEIR EVOLUTION NCERT MOST IMPORTANT QUESTION for Class 11 GEOGRAPHY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON LANDFORMS AND THEIR EVOLUTION

Question 1.
How does wind forms geomorphic landforms or how does wind performs its tasks in the desert areas.
Answer:

• Wind move along the desert floors with great speed and the obstructions in their path create turbulence. Wind causes deflations, abrasion and impact.
• Deflation includes lifting and removal of dust and smaller particles from the surface of rocks. In the transportation process sand and silt act as effective tools to abrade the land surface. The impact is simply sheer force of momentum which occurs when sand is blown into or against a rock surface.

Question 2.
Explain the depositional landforms formed by glaciers.
Answer:
The depositional landforms formed by glaciers are:

• Moraines: When valley glaciers retreating rapidly leave an irregular sheet of till over their valley floor. Such deposits varying greatly in thickness and in surface topography are called Moraines
• Esker: When glaciers melt, the water flows on the surface of the ice or seeps down along the margins or even moves through the holes in the ice. Very minor coarse materials settle in valley of ice beneath the glacier and when ice melts it can be found as sinuous ridge called Esker.
• Drumlins: Drumlins are smooth oral shaped ridge-like features composed mainly of glacial till with some masses of gravel and sand.

Question 3.
What are Moraines? Explain different types of Moraines with diagram.
Answer:
Moraines are long ridges of deposits of glacial till.
Different types of moraines are:

•  The lateral moraines: They form along the sides parallel to glacial valleys. These moraines partly or fully owe their origin to glacio- fluvial waters pushing up materials to the sides of glaciers.
• Ground moraines: Many valley glaciers retreating rapidly leave an irregular sheet of till over their valley floors. Such deposits varying greatly in thickness and in surface topography are called Ground moraines.
• Medial moraines: The moraines in the centre of the glacial valley flanked by lateral moraines is called medial moraines.

Question 4.
Differentiate between:
1. Stalactites and Stalagmites
2. Sinkholes and Urallas
3. Gorge and Canyon
Answer:
1. Stalactites and Stalagmites

S.No.	Stalactites	Stalagmites
1.	Stalactites hang as icicles of different diameters.	Stalagmites rise up from the floor of the caves.
2.	They are broad at their bases and taper towards the free ends showing up in a variety of forms.	It may take the shape of a disc, a column with either a smooth, rounded bulging end.

2. Sinkholes and Urallas

Sinkholes	Urallas
A sinkholes is an opening more or less circular at the top and funnel-shaped towards the bottom.	When sink holes and dolines join together because of slumping of material along their margins the Urallas are formed.

3. Gorge and Canyon

• A gorge is a deep valley with very steep to straight sides and a canyon is characterized by steep step-like side slopes and may be as deep as a gorge.
• A gorge is almost equal in width at its top as well as its bottom. In contrast, a canyon is wider at its top than at its bottom. In fact, canyon is a variant of gorge.
• Example, canyons commonly form in horizontal bedded sedimentary rocks and gorge form in hard rocks.

Question 5.
Explain the landforms that are seen in upper part of the river.
Answer:
In upper part of the river, many beautiful and attractive landforms are formed. Some of them are as follows:

•  V-shaped valleys: Valleys start as small and narrow rills; the rills will gradually develop into long and wide gullies; the gullies will further deepen, widen and lengthen to give rise to valleys. Depending upon dimensions and shape, many types of valleys like V-shaped valley, gorge, canyon, etc. can be recognised.
• Gorge: A gorge is a deep valley with very steep to straight sides.
• Canyon: A canyon is characterised by steep step-like side slopes and may be as deep as a gorge. A gorge is almost equal in width at its top as well as its bottom. In contrast, a canyon is wider at its top than at its bottom. In fact, a canyon is a variant of gorge.
• Waterfall: When the rivers start falling in pits in mountainous regions, it makes waterfall.
• Plunge pools: Once a small and shallow depression forms, pebbles and boulders get collected in those depressions and get rotated by flowing water and consequently the depressions grow in dimensions. A series of such depressions eventually join and the stream valley gets deepened. At the foot of waterfalls also, large potholes, quite deep and wide, form because of the sheer impact of water and rotation of boulders. Such large and deep holes at the base of waterfalls are called plunge pools.

Question 6.
Explain the landforms made by erosion caused by groundwater.
Answer:
Important landforms made by erosion are as follows:

1. Pools: These are conical shaped pits whose depth is three to nine metres. The width of the mouth is more than one metre. Due to solubility in water, when cracks in limestone increase, then pools take birth.

2.Swallow holes: Small to medium sized round to sub-rounded shallow depressions called swallow holes form on the surface of limestones through soil.

3. Sinkholes: A sinkhole is an opening more or less circular at the top and funnel -shaped towards the bottom with sizes varying in area from a few square metre to a hectare and with depth from a less than half a metre to thirty metres or more.

4. Uvalas: When sinkholes and dolines join together because of slumping of materials along their margins or due to roof collapse of caves, long, narrow to wide trenches called uvalas are formed.

5. Collapse sinks: If the bottom of the sinkholes forms the roof of a void or cave underground it might collapse leaving a large hole opening into a cave or a collapse sinks.

6. Lapies: Gradually, most of the surface of the limestone is eaten away by these pits and trenches, leaving it extremely irregular with a maze of points, grooves and ridges or lapies. Especially, these
ridges or lapies form due to differential solution activity along parallel to sub¬parallel joints. The lapie field may eventually turn into somewhat smooth limestone pavements.

7. Caves: In areas where there are alternating beds of rocks (shales, sandstones, quartzites) with limestones or dolomites in between or in areas where limestones are dense, massive and occurring as thick beds, cave formation is prominent. Water percolates down either through the materials or through cracks and joints and moves horizontally along bedding planes. It is along these bedding planes that the limestone dissolves and long and narrow to wide gaps called caves result. There can be a maze of caves at different elevations depending upon the limestone beds and intervening rocks. Caves normally have an opening through which cave streams are discharged. Caves having openings at both the ends are called tunnels.

Question 7.
Explain the depositional landforms made by rivers.
Answer:
Depositional Landfoi, made by rivers:

1. Alluvial Fans: Alluvia ms are formed when streams flowing from higher levels break into foot slope plains of low gradient. Normally very coarse load is carried by streams flowing over mountain slopes. This load becomes too heavy for the streams to be carried over gentler gradients and gets dumped and spread as a broad low to high cone shaped deposit called alluvial fan. Usually, the streams which flow over fans are not confined to their original channels for long and shift their position across the fan forming many channels called distributaries. Alluvial fans in humid areas show normally low cones with gentle slope from head to toe.

2. Deltas: Delta is like alluvial fans but develop at a different location. The load carried by the rivers is dumped and spread into the sea. If this load is not carried away far into the sea or distributed along the coast, it spreads and accumulates. Such areas over flood plains built up by abandoned or cut-off channels contain coarse deposits. The flood deposits of spilled waters carry relatively finer materials like silt and clay. The flood plains in a delta are called delta plains.

3. Floodplains: Floodplain is a major landform of river deposition. Large sized materials are deposited first when stream channel breaks into a gentle slope. Thus, normally, fine sized materials like sand, silt and clay are carried by relatively slow moving waters in gentler channels usually found in the plains and deposited over the bed and when the waters spill over the banks during flooding above the bed.

4. Natural Levees: Natural levees are found along the banks of large rivers. They are low, linear and parallel ridges of coarse deposits along the banks of rivers, quite often cut into individual mounds. During flooding as the water spills over the bank, the velocity of the water comes down and large sized and high specific gravity materials get dumped in the immediate vicinity of the bank as ridges. They are high nearer the banks and slope gently away from the river. The levee deposits are coarser than the deposits spread by flood waters away from the river. When rivers shift laterally, a series of natural levees can form.

5. Point Bars: Point bars are also known as meander bars. They are found on the convex side of meanders of large rivers and are sediments deposited in a linear fashion by flowing waters along the bank. They are almost uniform in profile and in width and contain mixed sizes of sediments. If there more than one ridge, narrow and elongated depressions are found in between the point bars.

Question 8.
Explain the erosional landforms created by waves and currents.
Answer:
Cliffs, Terraces, Caves and Stacks are important landforms created by erosion caused by waves and currents.

• Wave-cut cliffs: Almost all sea cliffs are steep and may range from a few m to 30 m or even more. At the foot of such cliffs there may be a flat or gently sloping platform covered by rock debris derived from the sea cliff behind. Such platforms occurring at elevations above the average height of waves is called a wave-cut terrace.
• Terraces: The lashing of waves against the base of the cliff and the rock debris that gets smashed against the cliff along with lashing waves create hollows and these hollows get widened and deepened to form sea caves. The roofs of caves collapse and the sea cliffs recede further inland.
• Sea stacks: Retreat of the cliff may leave some remnants of rock standing isolated as small islands just off the shore. Such resistant masses of rock, originally parts of a cliff or hill are called sea stacks.

Like all other features, sea stacks are also temporary and eventually coastal hills and cliffs will disappear because of wave erosion giving rise to narrow coastal plains, and with onrush of deposits from over the land behind m ay get covered up by alluvium or may get covered up by shingle or sand to form a wide beach.

Question 9.
Explain the different stages of a river.
Answer:
A river passes through three stages like a human being: youth, mature and old.

1. Youth Stage: Youth streams are less in number. In this stage with poor integration and flow over original slopes showing shallow V-shaped valleys with no floodplains or with very narrow floodplains along trunk streams. Streams divides are broad and flat with marshes, swrnmp and lakes. If meanders are present, they develop over these broad upland surfaces. These meanders may eventually entrench themselves into the uplands. Waterfalls and rapids may exist where local hard rock bodies are exposed.

2. Mature Stage: During this stage streams are plenty with good integration. The valleys are still V-shaped but deep; trunk streams are broad enough to have wider floodplains within which streams may flow in meanders confined within the valley. The flat and broad inter stream areas and swamps and marshes of youth disappear and the stream divides turn sharp. Waterfalls and rapids disappear.

3. Old Stage: Smaller tributaries during old age are few with gentle gradients. Streams meander freely over vast floodplains showing natural levees, oxbow lakes, etc. Divides are broad and flat with lakes, swamps and marshes. Most of the landscape is at or slightly above sea level.

Question 10.
Distinguish between river alluvial plains and glacial outwash plains.
Answer:
River Alluvial Plains: The alluvial plain is an erosional plain that occurs from weathering caused by water currents in the sea, river or stream. Fluvial (water) movement comes from higher land regions and wear away landmasses to produce low relief plains. This is known as the alluvial plain. These landforms are made up of the deposition of sediment over a long period of time from the fluvial movement to form alluvial soil.

An alluvial plain is characterized by its relatively flat -and gently sloping landform and is normally formed at the base of a range of hills. Continuous fluvial weathering of these hills is what causes sediments to move and spread across lower levels to produce this type of plain. These plains are formed mostly by slow running rivers, as slower fluvial movement picks up less sediment off the river floor causing more particles to settle and develop into an alluvial plain. Areas where more particles are dropped off are sometimes referred to as flood plains, and the particles that settle are called alluvium.

Glacial Outwash Deposits: The large quantities of water that flowed from the melting ice deposited is called glacial outwash. Outwash plains made up of outwash deposits are characteristically flat and consist of layers of sand and other fine sediments. Such plains with their sandy soils are often used for specialized kinds of agriculture, such as the potato production in Montcalm County.

As the margins of the ice lobes retreated, glacial meltwater and precipitation drained southward to the Gulf of Mexico because higher land or glacial ice blocked flow in other directions. Ice-marginal lakes (or proglacial lakes) form when the land in front of the ice margin slopes toward the ice, allowing meltwater to pond directly in contact with the ice.

In This Post we are  providing  CHAPTER 6 GEOMORPHIC PROCESSES NCERT MOST IMPORTANT QUESTION for Class 11 GEOGRAPHY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON GEOMORPHIC PROCESSES

Question 1.
What factors have caused diastrophism?
Answer:
All processes that move, elevate or build up portions of the earth’s crust come under diastrophism. They include:

• Orogenic processes: It involves mountain building through severe folding and affecting long and narrow belts of the earth’s crust;
• Epeirogenic processes: It involves uplift or warping of large parts of the earth’s crust;
• Earthquakes: It involves local relatively minor movements;
• Plate tectonics: It involves horizontal movements of crustal plates. All these processes-cause pressure, volume and temperature (PVT) changes which in turn induce metamorphism of rocks.

Question 2.
Why is the surface of the earth uneven?
Answer:
The difference in the internal forces operation from within the earth which built up the crust have been responsible for the variations in the outer surface of the crust. Due to variations in geothermal gradients and strength, the actions of endogenic forces are not uniform and hence the tectonically controlled original crystal surface is uneven.

Question 3.
What factors activate the process of mass movement?
Answer:
Following factors activate the process of mass movement.

• Removal of support from below to materials above through natural or artificial means;
• Increase in gradient and height of slopes;
• Overloading through addition of materials naturally or by artificial filling;
• Overloading due to heavy rainfall, saturation and lubrication of slope materials;
• Removal of material or load from over the original slope surfaces;
• Occurrence of earthquakes, explosions or machinery;
• Excessive natural seepage;
• Heavy drawdown of water from lakes, reservoirs and rivers leading to slow outflow of water from under the slopes or river banks;
• Indiscriminate removal of natural vegetation.

Question 4.
How does biological weathering take place?
Answer:
Biological weathering takes place by:

• Animals: Animals like rabbits, rats, termides, etc. make burrows and holes in the rocks. They consumes large quantity of soils and rocks for making their habitat and destruction of food. This loosens the rock strata and disintegration occurs.
• Vegetation: Long and teanatious roots of plants work down into cracks of rocks. The roots of shrubs and trees reach deep into them and this lodge large blocks.
• Human Activities: Mining, deforestation, indiscriminate cultivation of land and construction activities contribute to weather.

Question 5.
Write the difference between:
(i) Exogenic and endogenic forces
(ii) Orogenic movements and epeirogenic movements
(iii) Physical weathering and chemical weathering.
Answer:
(i)

S.no.	Exogenic Forces	Endogenic Forces
1.	The external forces are known as Exogenic forces.	The internal forces are known as Endogenic forces.
2.	Solar energy is the sole driving force behind all the Exogenic processes. E.g. Erosion, Flood, Mining, etc.	Gravity is the sole driving force behind all the Endogenic process. E.g. Earthquake, Volcanic Eruption, etc.

(ii)

S.no.	Orogenie Movements	Epeirogenic Movements
1.	In the process of Orogenie the crust is severely deformed into folds.	Due to Epeirogenic they may be single deformation.
2.	It is mountain building process.	It is continental building process.
3.	It affects long and narrow belt of earth’s crust.	It involves uplift or wrapping of large parts of earth’s crust.

(iii)

S.no.	Physical Weathering	Chemical Weathering
1.	Physical force disintegrates the rocks.	Rocks are decomposed by chemical changes.
2.	No chemical change occurs.	Not much physical change occurs but chemical change occurs due to air and water.
3.	More effective in dry and cold areas.	Effective in hot and hum 1 areas.
4.	Insulation, frost and pressure are the agents.	Oxidation and reduction arbonation, hydration and soil are the agents.
5.	Rocks are affected at the greater depth.	Rocks are affected on the surface only.
6.	Even the strong minerals are affected by physical weathering.	Chemical resistance minerals are not affected.

Question 6.
What are different types of mass movements?
Answer:
There are three types of mass movements: Slow Movements: Creep is one type under this category which can occur on moderately steep, soil covered slopes. Movement of materials is extremely slow and imperceptible except through extended observation. Materials involved can be soil or rock debris. Soil creep, talus creep, rock creep, rock- glacier creep etc can be identified. It also includes solifluction which involves slow downslope flowing soil mass or fine grained rock debris saturated or lubricated with water. This process is quite common in moist temperate areas where surface melting of deeply frozen ground and long continued rain respectively, occur frequently. When the upper portions get saturated and when the lower parts are impervious to water percolation, flowing occurs in the upper parts.

Rapid Movements: These movements are mostly prevalent in humid climate regions and occur over gentle to steep slopes. Movements of water- saturated clayey or silty earth materials down low angle terraces or hill slides is known as earth flow. When slopes are steeper ever the bedrock especially of soft sedimentary rocks like shale or deeply weathering igneous rock may slide downslope. With heavy rainfall, thick layers of weathered
materials get saturated with water and either slowly or rapidly flow down along definite channels. It looks like a stream of mud within a valley.

Landslides: The types of landslides.

• Slumps: The slipping of one or several units of rock debris with a backward rotation with respect to the slope over which the movement takes place.
• Debris slide: rapid rolling or sliding of earth debris without backward rotation of mass is known as Debris slide.
• Rockslide: Sliding of individual rock masses down bedding, joint or fault surface is rockslide.
• Rock fall: Rock fall is free falling of rock blocks over any steep slope keeping itself away from the slope. Rock falls occurs from the superficial layers of the rock face.

Question 7.
Explain different types of chemical weathering.
Answer:
Different types of chemical weathering includes:

1. Oxidation and Reduction: Oxidation is the effect of oxygen in air and water on the rocks. The atmospheric oxygen in rainwater unites with minerals in rocks specially with iron compounds. When oxidised minerals are placed in an environment where oxygen is absent, reduction takes place. It exists normally below water table, in area of stagnant water in more hot and humid climates.

2. Carbonation: When the carbon dioxide in atmosphere dissolves in water it form carbonic acid that affects the rocks, it is carbonation. It has acidic affect and dissolves calcium carbonates and magnesium carbonates such as gypsum, marble, limestone.

3.  Hydration: When the hydrogen of water dissolves in rocks hydration occurs. Certain minerals in rocks increase their volume and become heavy when observe water contains hydrogen. They break due to its increased pressure and the colour also changes.

4. Solution: Rainwater is able to dissolve certain minerals and leaching of the soil occurs. Normally solids are also removed during leaching. For e.g.: gypsum, rock salt, etc. undergo solution.

Question 8.
Explain different types of physical weathering.
Answer:
Different types of physical weathering includes:

• Exfoliation: Due to differential heating and resulting expansion and contraction of surface layers and their subsequent exfoliation from the surface results in smooth rounded surfaces in rocks. In rocks like granites, smooth surfaced and rounded small to big boulders called tors form due to such exfoliation.
• Frost: It is an active agent in cold climatic regions in high altitudes and the cracks are filled with water during the day time, this water is frozen at night when temperature falls below freezing point.
• Pressure: Many igneous and metamorphic rocks crystallize deep in the interior under the combine influence of high pressure and temperature. The salt near surface pores cause splitting of the grains within the rocks which eventually falls off, this result into granules disintegration.

Question 9.
Explain about erosion and deposition.
Answer:
Erosion involves acquisition and transportation of rock debris. When massive rocks break into smaller fragments through weathering and any other process, erosional geomorphic agents like running water, groundwater, glaciers, wind and waves remove and transport it to other places depending upon the dynamics of each of these agents. Abrasion by rock debris carried by these geomorphic agents also aids greatly in erosion. By erosion, relief degrades, i.e., the landscape is worn down. Weathering aids erosion it is not a pre-condition for erosion to take place. Weathering, mass-wasting and erosion are degradational processes. It erosion that is largely responsible for continuous changes that the earth’s surface is undergoing. The erosion and transportation of earth materials is brought about by wind, running water, glaciers, waves and ground water.

Deposition is a consequence of erosion. The erosional agents loose their velocity and hence energy on gentler slopes and the materials carried by them start to settle themselves. In other words, deposition is not actually the work of any agent. The coarser materials get deposited first and finer ones later. By deposition depressions get filled up. The same erosional agents viz., running water, glaciers, wind, waves and groundwater act as aggradational or depositional agents also. What happens to the surface of the earth due to erosion and deposition is elaborated in the next chapter on landforms and their evolution. There is a shift of materials in mass movements as well as in erosion from one place to the other.

Question 10.
Is it essential to distinguish between geomorphic agents and geomorphic processes? If yes, explain the difference.
Answer:
Yes, it is essential to distinguish between geomorphic agents and geomorphic processes because former is the cause and latter is the stepwise process.

• Geomorphic agent: An agent is a mobile medium (like running water, moving ice masses, wind, waves and currents, etc.) which removes, transports and deposits earth materials. Running water, groundwater, glaciers, wind, waves and currents, etc., can be called geomorphic agents.
• Geomorphic Processes: The Endogenic and Exogenic forces causing physical stresses and chemical actions on earth material and bringing about changes in the configuration of the surface of the earth is known as Geomorphic Process.

In This Post we are  providing  CHAPTER 5 MINERALS AND ROCKS NCERT MOST IMPORTANT QUESTION for Class 11 GEOGRAPHY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON MINERALS AND ROCKS

Question 1.
What is lithification?
Answer:
The fragments of the rocks are transported by various exogenous agencies and deposited. These deposits through compaction and/or cementation turn into rocks. This process is called lithification. In many sedimentary rocks, the layers of deposits. retain their characteristics even after lithification.

Question 2.
How would you classify the igneous rocks based on the size and nature of crystals?
Answer:
There are five types of igneous rocks based on the size and nature of crystals viz.

1. rocks with phaneritic textured crystals
2. rocks with orphan textured crystals
3. equigranular textured rocks, and
4. porphyritic textured rocks.

The crystals large enough to be seen with naked eyes or with the help of hand lens are called phaneritic textured crystals, whereas those too small to be distinguished without the aid of a microscope are – called orphan textured crystals of the igneous rocks. Where crystals in the rocks are all within the same size range, the texture is described as equigranular, whereas few large crystals are embedded in a matrix of smaller crystals, the texture is porphyritic.

Question 3.
Discuss the classification of sedimentary rocks into clastic and non-clastic division.
Answer:
Clastic means ‘broken’, describes clastic sediments consisting of particles removed individually from a parent rock source. The naming of clastic rocks depends on the size of component mineral grains.

The non-clastic sedimentary rocks are made of sediments of two basic types: chemical precipitates and organically derived sediments.

The chemical precipitates are solid mineral matters precipitated from an aqueous solution. The rock salt and gypsum are its examples. The organically derived sediments consist of remains of plants and animals as well as mineral matters produced by activities of plants and animals. Coal and limestone are examples.

Question 4.
What are schists?
Answer:
As metamorphism continues a large percentage of the minerals assume the plate-like shape and are assembled in parallel orientation in the rock, a structure is known as foliation. Strongly developed foliation is known as schist.

Question 5.
What is meant by mineral hardness?
Answer:
The degree to which a mineral surface resists being scratched is known as its mineral hardness. Hardness is important because it determines how a mineral is worn away by the abrasive action of stream, waves, wind and glaciers in the processes of erosion and transportation..

Question 6.
Write short notes on:
1. Sedimentary rocks
2. Types of metamorphism
Answer:
1. Sedimentary rocks: Exogenous agencies such as rain, wind, ice, running water, plants and animals are constantly hurried in rock disintegration producing loose and broken rock fragments in all sizes. These minerals are carried by wind, ice and running water in depressions such as lakes and seas on the earth’s surface. Such dropped materials are called sediments. Accumulation of these sediments in course of time gives rise to sedimentary rocks. The word ‘sedimentary’ is derived from the Latin word ‘sedimented’ means setting down. The sediments are usually deposited in distinct layers or strata. Therefore, these rocks are also known as stratified rocks.

2. Types of metamorphism: Metamorphism is the process of transformation of pre-existing rock into a new rock. Thus, metamorphic rocks are found when a rock is subjected to heat and/or pressure. Their characteristics are altered by forming new mineral forms. There are three types of metamorphism, viz. foliation, lineation and banding. When, under continued metamorphism, its minerals assume the plate-like shape and are assembled in parallel orientation in the rock, it is called foliation, e.g., Schist is formed in this manner.

When the mineral grains are drawn out into long, thin, pencil-like objects, all in parallel alignment, it is referred to as lineation. In another type of metamorphism, i.e., banding, the minerals of different varieties or groups are segregated into alternate layers. These layers are usually of light or dark shades, making the banding conspicuous.

Question 7.
What is the economic importance of minerals?
Answer:
Mineral resources can be divided into four main groups – essential resources, energy resources, metal resources and industrial resources. The most basic group, essential resources, comprises soil and water. Energy resources can be divided into fossil fuels (crude oil, natural gas, coal, oil shale and tar sand) and nuclear fuels (uranium, thorium and geothermal power). Metal resources range from structural metals such as iron, aluminium and titanium to ornamental and industrial metals such as gold, platinum and gallium.

Mineral deposits have two geological characteristics that make them a real challenge to modem civilization. First, all of them are non-renewable resources. The geological processes that form them are much slower than the rate at which we exploit them. There is no likelihood of our ability to grow mineral deposits at a rate equal to our consumption. Second, mineral deposits have a place value. We cannot decide from where to extract them; nature made that decision for us when the deposits were formed.

Question 8.
Describe the categorization of metamorphic rocks.
Answer:
The metamorphic rocks can be broadly grouped into two major classes – cataclastic rocks and recrystallised rocks. Cataclastic rocks are formed by mechanical disruption (breaking and crushing) of the original materials. The process is described as dynamic metamorphism.

The recrystallised rocks are further divided into two sub-classes – contact and regional metamorphic rocks. The contact metamorphic rocks are formed by recrystallisation under high temperature caused by intruding magma. The rocks are not subjected to bending or breaking and new minerals emanating from magma are added to metamorphosed rocks. The regional metamorphic rocks undergo recrystallisation during the process of being deformed by sharing often under the condition of high pressure or high temperature or bolts.

Question 9.
Discuss various types of rocks in detail.
Answer:
There are three main groups of rocks: igneous, sedimentary and metamorphic rocks.
Igneous rocks: These are formed from lava hurled out of a volcano or from the cooling of hot magma below the crust. Granite is a coarse-grained rock that was formed by the slow cooling of magma. Basalt is a fine-grained igneous rock, almost black, that was formed by quick cooling of lava. Chemical differentiation of magma gives rise to mafic and felsic types of igneous rocks.

The size of mineral crystals in an igneous rock largely depends upon the rate of cooling of magma. As a general rule, rapid cooling results in small crystals and slow cooling in large crystals. Extremely sudden cooling results in the formation of a natural glass which is non-crystalline. Large bodies of magma trapped beneath the surface cool very slowly because the surrounding rocks conduct the heat slowly. Rapid cooling occurs in lava that loses heat rapidly to the atmosphere or to the overlying ocean water.

Question 10.
Describe the formation of igneous rocks, giving suitable examples of various types.
Answer:
The igneous rocks are divided into extrusive rocks and intrusive rocks. When the magma solidifies on the surface of the earth, we call it an extrusive rock. A typical example of this kind of rock is basalt. It is a very fine-grained rock, usually Sf black in colour.

On the other hand, when the magma solidifies in the crust, below the surface, it is called an intrusive rock. The few most common examples of intrusive rocks are granite and dolerite. More frequent, however, is the solidification of magma below the earth’s surface leading to the formation of intrusive rocks. Igneous rocks are classified on the basis of chemical composition and texture. Chemical differentiation of magma gives rise to mafic and felsic types of igneous rocks.

Texture relates to the sizes and pattern of the mineral crystals present in the rock. The size of mineral crystals in an igneous rock depends largely upon the rate of cooling of magma. As a general rule, rapid cooling results in small crystals and slow cooling results in large crystals. Extremely sudden cooling results in the formation of natural glass which is non-crystalline. Large bodies of magma trapped beneath the surface cool very slowly because the surrounding rocks conduct the heat slowly. Rapid cooling occurs in lava that loses heat rapidly to the atmosphere or to the overlying ocean water.

In This Post we are  providing  CHAPTER 3 INTERIOR OF EARTH NCERT MOST IMPORTANT QUESTION for Class 11 GEOGRAPHY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON INTERIOR OF EARTH

Question 1.
How do the rocks of the earth’s mantle behave when subjected to the earthquake waves?
Answer:
The earth’s mantle behaves as an elastic solid when subjected to the earthquake waves. It changes the shape of the landscape when stresses are applied, but returns exactly to its original shape when these stresses are removed.

Question 2.
What is asthenosphere?
Answer:
The asthenosphere is the zone of hot rocks, believed to be in a plastic condition, underlying the solid lithosphere or the earth’s crust. It is sometimes termed as the soft layer of mantle or the low-velocity zone because the earthquake waves travel in it at reduced velocities.

Question 3.
Distinguish between Body waves and surface waves.
Answer:
The earthquake waves which travel longitudinally through the solid body of the earth are called Body waves. They move-faster. Those waves which move transversally along the surface are known as Surface waves. They move slowly and cause more disaster.

Question 4.
Define surface waves along with their sub-types.
Answer:
The earthquake waves which move along the free upper crust of the earth are called surface waves. Surface waves are of two types, viz, Rayleigh waves and Love waves. Rayleigh waves can be visualised as water waves travelling across the surface of a still pond after a pebble has been tossed into the water. But the motion in the Love waves is entirely horizontal, at right, angles to the direction of the wave motion. The Rayleigh and Love waves travel more or less the same length, but with different speeds.

Question 5.
Describe the three types of earthquake waves.
Answer:
These waves are :

1. ‘P’waves or longitudinal waves-These are also known as primary waves. These travel in the direction of their movement. They can travel through solids as well as liquid and gaseous matter.
2. ‘S’ waves or transverse waves – These are also known
   as secondary waves. These travel at a right angle to the direction of their oscillation. They can travel in solid ‘? medium only.
3. ‘L’ waves – These are known as surface waves. These waves do hot go deep into the earth.

Question 6.
Write short notes on :
1. Shadow zone
2. The earth’s crust
Answer:
1. Shadow zone – It lies beneath the surface of the earth, i.e., in its interior. The seismic waves bend as they travel through the core and, therefore, ‘P’ waves are not directly received in a zone known as the shadow zone. Also, ‘S’ waves are not received there because they do not travel through the liquid outer core. Only surface waves are received in the shadow zone.

2. The earth’s crust – This is also known as the lithosphere. The crust is the outermost shell 1 of the earth. It consists of the surface granite SIAL and the intermediate basic SIMA layers. It is separated from the under layer MANTLE by the Mohorovicic Discontinuity. There are two kinds of crust – continental and oceanic. Continental crust has an average density of 3 g/cnt3, the average thickness of 35 to 40 km. (22 to 25 miles) with large areas older than 1500 million years. Continental crust is a complicated structure and has a variable composition. Oceanic crust is thinner than continental crust. Its average density is 2.7 g/cm3 and average thickness of only 6 km. (3.7 miles), with the simple layered structure of the uniform composition.

Question 7.
Discuss how do seismic waves suggest layering of the earth’s interior.
Answer:
Seismic waves are the earthquake waves. The movement of seismic waves tells us a great deal about the earth’s internal structure. The shock waves arising from earthquakes pass through the interior of the earth in different ways and provide evidence about the inaccessible interior region of the earth. Seismic waves are of two types -: body waves and surface waves. Body waves travel through the solid body of the earth, whereas surface waves move along the free upper crust of the earth. Surface waves, in turn, are of two types, viz, Rayleigh waves and Love waves.

Body waves also have two sub-types, viz, ‘P’ waves and ‘S’ waves. ‘P’ (primary waves) pass through all the medium solid, liquid and gaseous, whereas ‘S’ or secondary waves do not pass through liquids.

Based on the above observation related to seismic waves, the interior has been divided into three layers – core, mantle and crust.

The core is the innermost or central layer, the crust is the outermost layer, whereas mantle lies in the middle. Since ‘S’ waves cannot pass through the central part of the earth or core, it suggests that this part is made up of a medium which is not solid. This proves that the earth’s outer core is in a liquid state in contrast to the surrounding mantle which is solid.

The ‘P’ waves make an abrupt drop in velocity at the mantle-core _ boundary, whereas ‘S’ waves terminate here. Based on the behaviour of seismic waves, the mantle is sub-divided into two major parts – the upper mantle and the lower mantle.

The crust is distinguished from the mantle by the presence of an abrupt change in velocity of seismic waves. The change in rigidity, in turn, is due to change in the universal composition or in the physical state of the rocks.

Question 8.
Describe the earth’s mantle.
Answer:
The mantle is that part of the earth’s interior which lies between the core and the crust. It consists of solid ultrabasic rocks. The mantle is about 2900 km thick with a density of about (3.0 to 3.4) g/cm3. The lower surface of the mantle forces Gutenberg Discontinuity, the uppermost layer forces the Asthenosphere.

The ‘P’ or primary earthquake waves make an abrupt drop in velocity at the mantle-core boundary, whereas ‘S’ or secondary waves terminate at this boundary. . It is because of the presence of a plane of the discontinuous surface between the core and the mantle known as Gutenberg Discontinuity.

Based on the behaviour of seismic waves, the mantle is sub-divided into two major parts – the upper mantle and the lower mantle. The upper mantle extends from the crust to a depth of about 650 km. and includes 300 to 400 km wide Asthenosphere, the uppermost part of the mantle. Rocks in Asthenosphere behave as an elastic solid. This region is referred to as the low-velocity zone.

Question 9.

How do the waves of different types tell us about the changes in the nature of different layers of the earth’s interior?
Answer:
Seismic waves are the earthquake waves. The movement of seismic waves tells us a great deal about the earth’s internal structure. The shock waves arising from earthquakes pass through the interior of the earth in different ways and provide evidence about the inaccessible interior region of the earth. Seismic waves are of two types -: body waves and surface waves. Body waves travel through the solid body of the earth, whereas surface waves move along the free upper crust of the earth. Surface waves, in turn, are of two types, viz, Rayleigh waves and Love waves.

Body waves also have two sub-types, viz, ‘P’ waves and ‘S’ waves. ‘P’ (primary waves) pass through all the medium – solid, liquid and gaseous, whereas ‘S’ or secondary waves do not pass through liquids.

Based on the above observation related to seismic waves, the interior has been divided into three layers – core, mantle and crust.

The core is the innermost or central layer, the crust is the outermost layer, whereas mantle lies in the middle. Since ‘S’ waves cannot pass through the central part of the earth or core, it suggests that this part is made up of a medium which is not solid. This proves that the earth’s outer core is in a liquid state in contrast to the surrounding mantle which is solid.

The ‘P’ waves make the abrupt drop in velocity at the mantle-core boundary, whereas ‘S’ waves terminate here. Based on the behaviour of seismic waves, the mantle is sub-divided into two major parts – the upper mantle and the lower mantle.

The crust is distinguished from the mantle by the presence of an abrupt change in velocity of seismic waves. The change in rigidity, in turn, is due to change in the universal composition or in the physical state of the rocks.

The mantle is that part of the earth’s interior which lies between the core and the crust. It consists of solid ultrabasic rocks. The mantle is about 2900 km thick with a density of about (3.0 to 3.4) g/cm3. The lower surface of the mantle forces Gutenberg Discontinuity, the uppermost layer forces the Asthenosphere.

The ‘P’ or primary earthquake waves make an abrupt drop in velocity at the mantle-core boundary, whereas ‘S’ or secondary waves terminate at this boundary. . It is because of the presence of a plane of the discontinuous surface between the core and the mantle known as Gutenberg Discontinuity.

Based on the behaviour of seismic waves, the mantle is sub-divided into two major parts – the upper mantle and the lower mantle. The upper mantle extends from the crust to a depth of about 650 km. and includes 300 to 400 km wide Asthenosphere, the uppermost part of the mantle. Rocks in Asthenosphere behave as elastic solid. Th,is region is referred to as the low-velocity zone.

Question 10.
Distinguish between :
1. Body Waves and Surface Waves
2. The crust of the earth and Core of the earth
3. Gutenberg Discontinuity and Mohorovicic Discontinuity
Answer:
1. Body waves and Surface Waves :
Seismic waves are the earthquake waves. The movement of seismic waves tells us a great deal about the earth’s internal structure. The shock waves arising from earthquakes pass through the interior of the earth in different ways and provide evidence about the inaccessible interior region of the earth. Seismic waves are of two types -: body waves and surface waves. Body waves travel through the solid body of the earth, whereas surface waves move along the free upper crust of the earth. Surface waves, in turn, are of two types, viz, Rayleigh waves and Love waves.

Body waves also have two sub-types, viz, ‘P’ waves and ‘S’ waves. ‘P’ (primary waves) pass through all the medium – solid, liquid and gaseous, whereas ‘S’ or secondary waves do not pass through liquids.

Based on the above observation related to seismic waves, the interior has been divided into three layers – core, mantle and crust.

The core is the innermost or central layer, the crust is the outermost layer, whereas mantle lies in the middle. Since ‘S’ waves cannot pass through the central part of the earth or core, it suggests that this part is made up of a medium which is not solid. This proves that the earth’s outer core is in a liquid state in contrast to the surrounding mantle which is solid.

The ‘P’ waves make an abrupt drop in velocity at the mantle-core boundary, whereas ‘S’ waves terminate here. Based on the behaviour of seismic waves, the mantle is sub-divided into two major parts – the upper mantle and the lower mantle.

The crust is distinguished from the mantle by the presence of an abrupt change in velocity of seismic waves. The change in rigidity, in turn, is due to change in the universal composition or in the physical state of the rocks.

2. Crust of the earth and Core of the earth:

The crust of the Earth	The core of the Earth
l. This is the outermost layer of the earth.	1. This is the innermost layer ofof the earth.
2. The average density is 2.73g/cm3.	2. The average density is I7.2g/cm3.
3. It covers about 0.5% part of the earth.	3. It covers about 83% part of thethe earth.
4. It is made up of silica andaluminium.	4. It is made up of nickel and ferrous.

3. Gutenberg Discontinuity and Mohorovicic Discontinuity:

Gutenberg Discontinuity	Mohorovicic Discontinuity
1. It is the boundary between the mantle and the core.	1. It is the boundary between the crust arid the mantle.
2. It was observed by Beno Gutenberg in 1926.	2. It was observed by a Yugoslavian seismologist Mohorovicic in 1909.
3. The ‘P’ waves make an abrupt drop in the velocity at the mantle-core boundary, while S-waves disappear here.	3. The surface of a sudden increase in wave velocity, which separates crust above from the mantle below is Mohorovicic discontinuity.
4. This making a place at the dis-continuous surface between the core and mantle is known as Gutenberg discontinuity.

In This Post we are  providing  CHAPTER 2 THE ORIGIN AND EVOLUTION OF EARTH NCERT MOST IMPORTANT QUESTION for Class 11 GEOGRAPHY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON THE ORIGIN AND EVOLUTION OF EARTH

Question 1.
What is the opinion of present day
scientists about the origin of moon?
Answer:
In 1838, Sir George Darwin suggested that initially the earth and the moon formed a single rapidly rotating body. The whole mass became a dumb-bell shaped body and eventually it broke. The material separated from the earth was formed as moon and the place became the Pacific Ocean. It is not accepted now.

The present theory is the “giant impact theory” or “big splat theory”. A large size body of Mars collided with the earth and that portion was separated from the earth. The same portion became as a moon which revolves around the earth. The moon was formed about 4.44 billion years ago.

Question 2.
What are the difference between terrestrial planet and jovian planets?
Answer:
The main differences between the two are summarized below:

• The terrestrial planets were formed in the close vicinity of the planet star where it was too warm for gases to condense solid particles. Jovian planets were formed at a quite distant location.
• The solar wind was most intense nearer the sun, so it blew off lots of gas and dust from the terrestrial planets. The solar winds were not all that intense to cause similar removal of gases from the Jovian planets.
• The terrestrial planets are smaller and their lower gravity could not hold the escaping gases. Jovian planets are bigger and have high gravity.

Question 3.
Inner planets are terrestrial while outer planets are Jovian. Why?
Answer:
Inner planets are terrestrial while outer planets are Jovian because the terrestrial planets are smaller and their lower gravity could not hold the escaping gases. Jovian planets are bigger and have high gravity. Moreover, the solar wind was most intense nearer the sun, so it blew off lots of gas and dust from the terrestrial planets. The solar winds were not all that intense to cause similar removal of gases from the Jovian planets.

Question 4.
How did earth develop its different layers?
Answer:
During the formation of the moon, due to the giant impact, the earth was further heated up. It is through the process of differentiation that the earth forming material got separated into different layers. Starting from the surface to the central parts, we have layers like the crust, mantle, outer core and inner core. From the crust to the core, the density of the material increases.

Question 5.
Differentiate between inner planets and outer planets.
Answer:
The difference between inner planets and outer planets inner planets outer planets

Inner Planets	Outer Planets
1. Mercury, Venus, Earth and Mars are called Inner Planets	1. Jupiter, Saturn, Uranus, Neptune and Pluto are called Outer Planets
2. They are found between belt of asteroids and the sun	2. They are found after the belt of asteroids
3. They are also called terrestrial planets	3. They are called Jovian planets
4. Smaller in size	4. Larger in size
5. High density	5. Low density
6. Solid rocky state	6. Gaseous state
7. They are warm	7. They are cold

Question 6.
Explain how did life evolve on the earth?
Answer:
The origin of life as a kind of chemical reaction, which first generated complex organic molecules and assembled them. This assemblage was such that they could duplicate themselves converting inanimate matter into living substance. The record of life that existed on this • planet in different periods is found in rocks in the form of fossils. The microscopic structures closely related to the present form of the blue algae have been found in geological formations m uch older than some 3,000 million years. It can be assumed that life began to evolve sometime 3,800 million years ago.

Question 7.
Explain different phases of evolution of planets.
Answer:
Evolution of planets can be understood in three stages:

1. Formation of Disc; The stars are localised lumps of gas within a nebula. The gravitational force within the lumps leads to the formation of a core to the gas cloud and a huge rotating disc of gas and dust develops around the gas core.

2. Formation of Planetesimals: In the next stage, the gas cloud starts and getting condensed and the matter around the core develops into small rounded objects. These small rounded objects by the process of collision develop into what is called planetesimals. Larger bodies start forming by collision and gravitational attraction causes the materials to stick together. Planetesimals are a large number of smaller bodies.

3. Formation of Planets: In the final stage, these large number of small planetesimals accrete to form fewer large bodies in the form of planets.

Question 8.
Explain the earliest theory associated with the origin of the earth.
Answer:
A large number of hypotheses were put forth by different philosophers and scientists regarding the origin of the earth. One of the earlier and popular arguments was by German philosopher Immanuel Kant. Mathematician Laplace revised it in 1796. It is known as Nebular Hypothesis. According to this theory there was a hot and rotating gas cloud called Nebula in the space. From Nebula there was a gradual loss of heat due to its rotation which resulted in cooling of its outer surface. This gradual cooling caused contraction in size of Nebula, but its speed increased due to angular momentum. The outer layer was separated from the remaining part of Nebula.

The centre of Nebula became ‘Sun’ and the planets were formed of the smaller units. The lighter material gases and the heavier dust particle gave the fact of inner and outer planets. In 1950, Otto Schmidt in Russia and Carl Weizasear in Germany somewhat revised the ‘nebular hypothesis’, though differing in details. They considered that the sun was surrounded by solar nebula containing mostly the hydrogen and helium along with what may be termed as dust. The friction and collision of particles led to formation of a disk-shaped cloud and the planets were formed through the process of accretion.

Question 9.
Explain the modern theory associated with evolution of the earth.
Answer:
In modern theory the evolution of the earth is associated with Big Bang Theory. It was put forth by Edwin Hubble in 1920. In the beginning, all matter forming the universe existed in one place in the form of a ‘tiny ball” \yith an unimaginably- small volume infinite temperature and infinite density. At the Big Bang “tiny ball” exploded violently. This led to a huge” expansion. it is now generally? accepted that the event of big. bang took place 13.7 billion years before the present. The expansion continues even to the present day. As it grew, some energy’ was converted into matter. There was particularly rapid expansion within fractions of a second’ after the bang. Thereafter, the expansion has slowed down. Within first Big Bang event, the first atom began to form.

Within 300,000 years from the Big Bang, temperature dropped to 4,500k and gave rise to atomic matter. The universe became transparent. The expansion of universe means increase in space between the galaxies. An alternative to this was Hoyle’s concept of steady state. It considered the universe to be roughly the same at any point of time. However, with greater evidence becoming available about the expanding universe, scientific community at present favours argument of expanding universe.

Question 10.
Explain the collision and accretion I hypothesis associated with the evolution of the earth.
Answer:
Collision hypothesis and accretion hypothesis are described below in short.
1.  Collision Hypothesis: It was given by Sir James and Harold Jeffrey.

• According to this theory, a large nebula ’wandering in the space came very close to smaller nebula (Sun) and its huge upsurge of matter on the surface of smaller nebula. The matter was detected from the smaller nebula and on cooling condensed into planets.

2. Accretion Hypothesis: It was given by? Schmidt and Carl Weizascar.

• According to them, solar system started out as a cloud of gas and dust drifting in a space called nebula. This gaseous cloud
  exploded violently to form supernova. The exploitation left the vast spinning cloud and gases and thus to collapse under its own gravity and develop as denser core.
• The denser core became larger and hotter and began to burge. Later it developed into protostar which finally evolved as ‘infant Sun.
•  Away from its central surface, particles of dust began to clump together and converted into first smaller fragments of rocks and then becoming larger bodies which were called planetesimals which collided with one another to form rocky inner planets like Mercury, Venus, Earth and Mars and the remaining were outer planets.

In This Post we are  providing  CHAPTER 1 GEOGRAPHY AS A DISCIPLINE NCERT MOST IMPORTANT QUESTION for Class 11 GEOGRAPHY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON GEOGRAPHY AS A DISCIPLINE

Question 1.
What is geography?
Answer:
The word geography is a combination of two Greek words. ‘Geo’ meaning the earth and “Graphy’ meaning description. Thus, the meaning of geography could be to write about the earth including all that is upon it. Geography is the science dealing with the spatial distribution of various phenomena (physical & human & biotic) on the surface of the earth.

Question 2.
What is the relation of geography with other sciences?
Answer:
Geography draws its contents from both natural science and social science (sociology, economics, political science). It has also. contributed to them. Hence there are several interdisciplinary’ areas in; geography. For example. Geomorphology is closely linked with. Geology, Economic Geography with Economics, and Bio-geography with life sciences (Botany and Zoology).

Question 3.
What are the three features of systematic geography?
Answer:

1. It studies geographical facts in an individual manner.
2. It implies the detailed study of a single specific geographical factor.
3. It is explanatory and is largely interpretative.
4. A detailed study of agriculture is done by marking the agricultural regions of India.

Question 4.
Why did geography become a popular subject in school by the end of the eighteenth century?
Answer:
It was because it gave knowledge about the land to prospective migrants, administrators and traders. Gradually, along with the description of places and peoples, explanation for varying responses of people to the natural environment was also presented. Thus, geography emerged as the study of the dynamics of the man-environment relationship and its imprints on the earth’s surface.

Question 5.
What do you mean by Systematic geography?
Answer:
A study of a specific natural or cultural phenomenon that gives rise to certain spatial patterns on the earth’s surface is called Systematic geography. There are four branches of systematic geography :

1. Physiography
2. Biogeography
3. Human ecology
4. Geographic methods and techniques.

Question 6.
Write a short note on Spatial Information Technology (SIT).
Answer:
The last quarter of the 20th century has put geography on a new trajectory of development with SIT as the main source of information and information processing. SIT is concerned with data collection and analysis related to physical space or the surface of the earth with the help of advanced means of information technology, such as remote sensing, aerial photographs, and satellite imageries.

They have enabled geographers to develop geographic information systems (GIS), land information systems (LIS), and global positioning systems (GPS) as location decision administration and managerial tools. Geography in the 21 st century has entered a new era of spatial information technology (SIT). They are going to be used not only in answering the question of what is where and why but also in what should be where and why. They will not only be generating information for decision-making but also will be actively participating in decision-making.

Question 7.
Describe the various branches of geography.
Answer:
Today geography is the only discipline that brings all-natural and human sciences on a common platform. It is an interdisciplinary and integrative science having numerous branches :
A. Systematic geography :

1. Physiography: Studies the physical aspects of the earth’s surface, as landforms, climate, water, and soil.
2. Plant Geography: Studies the distribution of various kinds r- of forests and grasslands. Zoo-geography studies the
   distribution of animals and micro-organisms. Human ecology studies the changing human-nature relationship and its consequences on human life and living. Environmental y geography studies the quality of the living environment and
   its implications for human welfare.
3. Human Geography: Human beings interact with nature and create a great variety of cultural phenomena like villages, Ji towns, cities, countries, factories, roads, houses, etc. The study of location and distribution of all such phenomena falls under the purview of human geography.
4. Geographic methods and techniques: Field studies, cartography, quantitation geography, and spatial information system (GIS, LIS, GPS).

B. Regional Geography :

1. Regional Studies
2. Regional Planning
3. Regional Development
4. Regional Approach

Question 8.
Discuss two perspectives of study that characterized geography in the twentieth century.
Answer:
Geography in the twentieth century became a discipline that studied the earth’s surface from two perspectives systematic and regional. The former produced sub-disciplines like physiography, climate, biography, political geography, economic geography, health geography, etc., while the latter gave rise to regional geography, regional science, regional development, regional planning, area planning, etc.

The first started with systematic knowledge to arrive at regional patterns, while the second started with a region to arrive at systematic details. In both cases, humans remained a central theme i.e., the emphasis of the study being on the impact of systematic processes and regional patterns on humans and their activities.

Question 9.
How did the Indian scholars contribute to geography in the ancient period?
Answer:
Indian scholars were among those who laid the foundation of geography in the ancient period. Atharva Veda, written around the 10th century B.C., gives the details of the then known earth, its physical features, bio-geography, and human settlements. Indians went to different parts of the world to carry the message of Indian culture, particularly of Hinduism and Buddhism. The contribution of Indian astronomers and geographers was highly advanced for their times. Aryabhatta propounded the theory of heliocentric universe a century before Copernicus, and Bhaskaracharya mentioned the gravity of the earth 1200 years before Newton. Kalidas’s description of the geography of Central India in ‘Meghaduta’ is highly professional,

Question 10.
What is the importance of Physical geography?
Answer:
Physical geography includes the study of the lithosphere, atmosphere, hydrosphere, and biosphere.

• Soils are formed through the process of pedogenesis and depend. upon the parent rocks, climate, biological activity, and time. Time provides maturity to soils and helps in the development of soil profiles. Each element is important for human beings.
• Landforms provide the base on which human activities are located.
• The plains are utilized for agriculture. Plateaus provide forests and minerals. Mountains provide pastures, forests, tourist spots and are sources of rivers providing water to lowlands.
• Climate influences our house types, clothing, and food habits.
• Climate has a profound effect on vegetation, cropping pattern, livestock farming, and some industries, etc.
• Temperature and precipitation ensure the density of forests and the quality of grassland.
• Oceans are the storehouse of resources and are rich in mineral resources, fish, and other seafood.

Soils are renewable resources, which influence a number of economic activities such as agriculture.

Physical geography is fast emerging as a discipline for evaluating and managing natural resources.

NCERT Most important question:

Q1. Differentiate between the contract manufacturing and setting up wholly owned production subsidiary abroad.

Ans: The difference between contract manufacturing and setting up wholly owned production subsidiary is as follows: 

Basis	Contract Manufacturing	Wholly Owned ProductionSubsidiary
Meaning	A type of international business in which a company contracts with one or a few local manufacturers in another country to have particular components or commodities manufactured according to its specifications.	Companies that seek complete control over their abroad operations use this way of international company entry.
Control	Because things are created completely according to the terms and standards, local businesses lose control over the manufacturing process.	Take complete control of the company’s operations.
Investment and Risk	If there is no investment, there is no risk.	It is not ideal for small and medium-sized businesses that do not have the finances to invest abroad.And it is responsible for all losses incurred as a result of its international businesses failing.

Q2. It is not just a sale of a trademark for a fee; also it abides the purchaser to follow strictly the rules of serving. Which mode of entry is this? Discuss any two limitations of it.

Ans: Licensing is defined as a contractual arrangement in which one firm (licensor) grants access to its patents, copyrights, trademarks, or technology to another firm in a foreign country for a fee called royalty.

Limitations

• The major risk is that the licensee can start marketing an identical product under a slightly different brand name. If not taken care of, the trade secrets can be passed on to the foreign markets.
• Conflicts over maintenance of accounts, payments of royalty, and non-adherence to norms relating to production of quality products.

Q3. What is the objective of WTO? What are its benefits?

Ans: Objectives of WTO are as follows:

Objectives

• To ensure that tariffs and other trade barriers imposed by different countries are reduced.
• To engage in activities that improve living standards, create jobs,
• Increase income and effective demand, and facilitate increased production and trade; 
• To facilitate the most efficient use of the world’s resources for sustainable development.
• To promote a more integrated, viable, and long lasting trade system.

Benefits

• Aids in the promotion of international peace and the facilitation of international trade.
• All member-nation conflicts are resolved by mutual talks. 
• International trade and ties are made much easier and more predictable by rules.
• Free trade raises people’s living standards by raising their income levels.
• Free trade allows for a wide range of high-quality products to be obtained. 
• Because of free trade, economic growth has accelerated.
• The system promotes effective government.
• The World Trade Organization (WTO) aids in the development of poorer countries.

Q4. Write notes on Bill of lading, Bills of entry, Shipping advice.

Ans:  The explanations are:

• Bill of Lading: The shipping company issues a bill of lading after receiving the freight, which acts as proof that the goods have been accepted for transport to the specified destination. This document is referred to as an airway bill when goods are being shipped by air.
• Bill of Entry: The bill of entry is presented to the port authority by the importer or his representative. The port authority issues the release order after obtaining the relevant charges. It is prepared by a qualified custom clerk or broker, and is examined by the customs authorities for its accuracy and conformity with the tariff and regulation.
• Shipping advice: It is a commercial document which is issued by the exporter, who is the beneficiary of the letter of credit, in order to give shipment details to the importer who has applied for the letter of credit.

Q5. Give the difference between Internal trade and International trade.

Ans: The difference between Internal trade and International trade is as follows:

Basis	International Trade	Internal Trade
Nationality of buyers and sellers	Buyers and sellers are from different countries.	The buyers and the sellers belong to the same country of business.
Nationality of stakeholders	Belong to different countries and have a wider set of values and aspirations.	Belong to one country and they have consistency in their value system and behaviour.
Mobility of factors production	Restricted mobility.	Free mobility.
Customer heterogeneity over the market	Difference in taste and preference does not induce complications in the task of designing products in the domestic market.	Difference in taste and preference does not induce any complication in the task of designing products in the domestic market.
Differences in business systems and practices.	Differences are considerably more among different countries.	Differences are less within the country.
Political systems and risks	In international business, the political environment differs from one country to another so the amount of risks is different.	The governing body within the country affects the domestic business.
Business regulations and policies	Business laws, regulations, and economic policies differ among different countries.	Business laws, regulations, and economic policies are less uniformly applicable within a country.
Currency used in business transactions	The price of one currency is expressed in relation to that of another country’s currency. Thus, it keeps fluctuating.	No such problem is faced as only home currency is used.

Q6. State the reasons to have international business?

Ans: Reason for international Business

• Unequal Distribution of Natural Resources: Countries cannot manufacture the same level of quality and at the same cost. This is due to the unequal distribution of natural resources and differences in productivity levels among different geographical places.
• Varied Differences: There is a disparity between labour productivity and manufacturing costs. Because of varied socioeconomic, geographical, and political factors, it varies in each country.
• Specialization Advantage: The principle of territorial division of labour can be applied internationally as well. Most developing countries with plenty of labour, for example, specialise in producing and exporting clothing.
• Price Differences: Firms also engage in the export and import of goods due to the difference in prices of products. They import cheaper things from other countries and export goods to other countries where they can fetch better prices for their products.

Q7. China is a major producer of electronic goods at very low cost as compared to India. Discuss the benefits that India will derive if it enters into a trade agreement with China for electronic goods.

Ans: Benefits to India if it enters into a trade agreement with China are as follows:

• Foreign exchange: International business facilitates foreign exchange within a country that aids in the payment of imported goods expenses, hence India’s foreign exchange would flourish with this trade agreement. 
• Efficient use of resources: Every country is specialised in the production of goods and services, leading to efficient utilisation of resources. 
• Growth: Exporting and flourishing in international trade helps in improving the economic growth of the country and creates opportunities for employment of people. Hence, India’s growth prospects would increase as a result of trade agreement.
• Stability: It also helps in bringing stability in the prices of domestic products of India.
• Better living standards: Due to International business, people in India would be able to consume and enjoy a higher standard of living.

Q8. List the formalities involved in getting an export license.

Ans: Prerequisites for getting an export license:

• Opening a bank account with any bank that has been approved by the Reserve Bank of India;
• Getting an Import Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) or a Regional Import Export Licensing Authority;
• Creating an account with the right export promotion council. 
• To protect against non-payment risks, you should register with the Export Credit and Guarantee Corporation (ECGC).
• A company must submit an exporter/importer profile, a bank receipt for the required fee, a certificate from the banker, two copies of photographs attested by the banker, details of non-resident interest, and a declaration about the application to obtain an IEC number to the Director General for Foreign Trade (DGFT).
• It is a legal requirement for all exporters to register with the proper export promotion council.
• To secure international payments from political and commercial interference, you must register with the ECGC.

Q9. Explain the following documents used in International trade:

 (i) Mate’s Receipt.

Ans: A mate receipt is a 

• Receipt that is provided by the ship’s commanding officer when the cargo is loaded on board. 
• The receipt contains information such as the vessel’s name, berth, date of shipping, package description, marks and numbers, cargo condition at the moment of receipt on board the ship, and so on.
• The port superintendent gives the C&F agent the mate’s receipt after receiving the port dues.

(ii) Letter of credit.

Ans: A letter of credit is a guarantee issued by the importer’s bank that it will honour payment of export invoices to the exporter’s bank up to a specific amount. A  letter of credit is asked from the importer to reduce the extent of risk. The importer should get the letter of credit from its bank and send it to the overseas supplier.

(iii) Certificate of origin.

Ans: To avail the   trade  concessions  and  other  benefits,  the  importer  has to  ask  the  exporter  to send  a  certificate  of  origin. The certificate of origin issued by the importer acts as a proof that the goods are manufactured in the country from where the export is taking place.

Q10. List the codal formalities to obtain IEC No.

Ans: For obtaining the IEC number, a firm has to apply to the Director General for Foreign Trade (DGFT) with documents such as:

• Exporter/importer profile
• Bank receipt for requisite fee
• Certificate from the banker on the prescribed form
• Two banker-attested copies of photos
• Details of the non-resident interest
• Statement of the applicant’s non-association with the businesses on the caution list

Q11. What is WTO? Write its objectives and Functions?

Ans: One of the key achievements of GATT negotiations was the decision to set up a permanent institution for looking after the promotion of free and fair trade amongst nations. The GATT was transformed into the World Trade Organization (WTO) with effect from 1 January 1995. Its headquarters are in Geneva, Switzerland. 

It regulates not just products but also services and intellectual property rights. It is, moreover, a member-driven rule-based organization in the sense that all the decisions are taken by the member governments on the basis of a general consensus. India is the founding member of the World Trade Organisation.

Objectives

• To ensure that tariffs and other trade barriers imposed by different countries are reduced.
• To engage in activities that improve living standards, create jobs,
• Increase income and effective demand, and facilitate increased production and trade; 
• To facilitate the most efficient use of the world’s resources for sustainable development.
• To promote a more integrated, viable, and long lasting trade system.

Functions

• Establishing a commonly accepted code of behaviour with the goal of reducing trade obstacles, such as tariffs, and eradicating discrimination in international trade relations by encouraging its member countries to come forward to the WTO to resolve their problems.
• Acting as a dispute resolution body.
• Ensuring that all of the Act’s rules and regulations are obeyed.
• Holding consultations to improve understanding and cooperation in global economic policymaking.

Q12. In what ways exporting/importing is better than setting up wholly owned subsidiaries abroad.

Ans: Exporting/Importing: Exporting refers to sending of goods and services from the home country to a foreign country. Whereas, Importing is defined as the purchase of foreign products and bringing them into one’s home country.

Wholly Owned Subsidiary: Those companies which want to exercise full control over their overseas operations, set up a wholly owned subsidiary in an overseas country.

Benefits of Exporting/Importing over Wholly Owned Subsidiary:

• Ease of entry: Exporting is the easiest way of gaining entry into international markets as compared with wholly-owned subsidiaries.
• Investment: Business firms are not required to invest that much time and money in exporting whereas in the case of wholly-owned subsidiaries, it is not suitable for small and medium size firms as they do not have enough funds with them to invest abroad.
• Risk: Because exporting and importing do not necessitate a large amount of foreign investment, the risk of foreign investment is negligible or very low.  In the case of wholly owned subsidiaries, they face greater political risks and are responsible for all damages resulting from the failure of their international activities.
• Government Interference: There are high political risks in the case of wholly owned subsidiaries as against exporting.
• Profit/Loss Risk: 100% equity is invested in case of wholly owned subsidiaries, making it riskier in comparison to exporting/importing.
• Complexity: The degree of complexity is higher in case of wholly owned subsidiaries as compared to exporting/importing.

Q13. ABS Garment Company has received an order to export 2000 men’s trouser to XYZ Imports Ltd. located in Australia. Discuss the procedure that abs would need to go through for executing the export order.

Ans: ABS should follow the export procedure given below:

1. Receipt  of  enquiry  and  sending  quotation

• Exporters can be notified of a request for information even if the importer places an advertisement in the press.
• The exporter responds to the inquiry with a quotation, often known as a proforma invoice.
• The proforma invoice comprises information about the price at which the exporter is willing to sell the goods, as well as information about the quality, grade, size, weight, mode of delivery, packing type, and payment terms.

2. Receipt  of  order  or  indent 

• It sets an order for the items to be sent if the export price and other terms and conditions are acceptable.
• Also referred to as indent, contains  the details of the goods ordered, and other information in respect to price, delivery, packing, marking etc.

3. Determining the creditworthiness of the importer and obtaining a payment guarantee

• The importer’s creditworthiness is investigated by the exporter.
• A  letter of credit is asked from the importer to reduce the extent of risk. 
• A letter of credit is a guarantee issued by the importer’s bank that it will honour payment of export invoices to the exporter’s bank up to a specific amount.

4. Obtaining  export  licence 

• In India, exporting commodities is governed by customs laws, which require that an export firm obtain an export licence before proceeding with exports.
• Prerequisites  for  getting  an  export  licence: 

• Opening a bank account with any bank that has been approved by the Reserve Bank of India;
• Getting an Import Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) or a Regional Import Export Licensing Authority;
• Creating an account with the right export promotion council. 
• To protect against non-payment risks, you should register with the Export Credit and Guarantee Corporation (ECGC).
• A company must submit an exporter/importer profile, a bank receipt for the required fee, a certificate from the banker on the prescribed form, two copies of photographs attested by the banker, details of non-resident interest, and a declaration about the application to obtain an IEC number to the Director General for Foreign Trade (DGFT).
• It is a legal requirement for all exporters to register with the proper export promotion council.
• To secure international payments from political and commercial interference, you must register with the ECGC.

5. Obtaining  pre-shipment  finance 

• To begin pre-production, the exporter asks his banker for pre-shipment financing.
• Pre-shipment finance is the funding required by an exporter to purchase raw materials and other components, process items, and transport goods to the port of shipment.

6. Production or procurement of goods

• The exporter then gets the goods ready according to the importer’s specifications.
• Either the company produces the commodities itself or it purchases them from the market.

7. Pre-shipment Inspection

• Inspection of some products by a competent agency recognised by the government is required.
• For this aim, the government created the Export Quality Control and Inspection Function in 1963 and authorised specific entities to act as inspection agencies.
• At the time of export, the pre-shipment inspection report is required to be submitted along with other export paperwork.

8. Excise Clearance

• The materials used to make the items are subject to excise duty.
• The exporter must submit an invoice to the relevant Excise Commissioner in the region.
• The Excise Commissioner issues the Excise clearance if he is satisfied with the invoice.
• The refund of an excise duty is known as a duty drawback.
• This scheme of duty drawback is administered by the Directorate of drawback under the ministry of finance which fixes the rates of drawback for different products.

9. Obtaining certificate of origin

• To avail the   trade  concessions  and  other  benefits,  the  importer  has to  ask  the  exporter  to send  a  certificate  of  origin.
• The certificate of origin issued by the importer acts as a proof that the goods are manufactured in the country from where the export is taking place.

10. Reservation of shipping space

• The exporting company submits a request for shipping space to the shipping company. 
• It must specify the types of commodities to be exported, the expected shipment date, and the final destination port. 
• The shipping business issues a shipping order after accepting the application for shipping.

11. Packing and forwarding

• The items are then properly packed and labelled with relevant information such as the importer’s name and address, gross and net weight, shipping port and destination, country of origin, and so on.
• The exporter then arranges for the transportation of the goods to the port.
• The railway authorities issue a “railway receipt” when commodities are loaded into a railway waggon, which serves as a title to the items.
• To enable his agent to take delivery of goods at the port of shipping, the exporter endorses the railway receipt in his favour.

12. Insurance of goods

• During transit, items are covered for loss with an insurance company to safeguard against the danger of loss or damage due to the perils of the sea.

13. Custom clearance

• Before the products can be loaded into the ship, they must first be cleared from customs.
• The exporter prepares the shipping bill in order to gain custom clearance.
• The main document on which the customs office grants export permission is the shipping bill.
• Five copies of the shipping bill are subsequently presented to the Customs Appraiser at the Customs House, together with the following documents:
• Export Contract or Export Order
• Letter of Credit
• Commercial Invoice
• Certificate of Origin
• Certificate of Inspection
• Marine Insurance Policy 

• Following the submission of these documents, the Superintendent of the relevant port trust is contacted to acquire a carting order. 
• The command to the workers at the port’s gate to allow the goods to enter the dock is known as a carting order.

14. Obtaining mates receipt

• A mate receipt is a receipt that is provided by the ship’s commanding officer when the cargo is loaded on board. 
• The receipt contains information such as the vessel’s name, berth, date of shipping, package description, marks and numbers, cargo condition at the moment of receipt on board the ship, and so on.
• The port superintendent gives the C&F agent the mate’s receipt after receiving the port dues.

15. Payment of freight and bill of lading

• The C&F agent hands along the mate’s receipt to the shipping business for freight calculation.
• The shipping company issues a bill of lading after receiving the freight, which acts as proof that the goods have been accepted for transport to the specified destination.
• This document is referred to as an airway bill when goods are being shipped by air.

16. Preparation of invoice 

• The invoice specifies the quantity of products shipped as well as the money due from the importer. 
• The C&F representative arranges for it to be duly authenticated by customs.

17. Securing payment

• The importer will require a variety of documentation in order to claim ownership of goods upon their arrival in his or her nation and get them customs cleared.
• In this case, a certified copy of the invoice, a bill of lading, a packing list, an insurance policy, a certificate of origin, and a letter of credit is needed.
• The submission of necessary documents to the bank for the purpose of receiving payment from the bank is referred to as “document negotiation.”
• When the bill of exchange is received, the importer either releases the money in the event of a sight draught or accepts the usance draught for payment on the bill of exchange’s maturity date. 
• The payment is collected by the exporter’s bank through the importer’s bank and credited to the exporter’s account. 
• The exporter can receive immediate payment from his/her bank upon submission of documentation by signing a letter of indemnity.

Q14. What is the World Bank? Discuss the various objectives and role of its affiliated agencies.

Ans: The Bretton Woods Conference led to the formation of the International Bank for Reconstruction and Development (IBRD), which is also referred to as the World Bank.

• The main goals were to aid in the reconstruction of Europe’s war-torn economies and to aid in the development of the world’s disadvantaged nations.
• After achieving success, it shifted its focus to the development of undeveloped countries.
• It realised that by investing more in these countries, particularly in social sectors such as health and education, it might help them achieve the requisite social and economic transformation.

Objectives and role of its affiliated agencies:

• The International Development Association (IDA): The International Development Association (IDA), an affiliate of the World Bank was established with the goal of providing loans on favourable terms and circumstances to countries with per capita incomes below a crucial level. IDA thus offers poor countries with interest-free long-term loans. 
• The International Finance Corporation: The International Finance Corporation, or IFC, was established in 1956 as a separate legal body with the mission of providing financing to the private sector in developing countries. Despite being a World Bank affiliate, the IFC has its own funds and functions that are controlled independently. 
• MIGA (Multinational Investment Guarantee Agency): MIGA, or the Multinational Investment Guarantee Agency, was founded in April 1988 with the goal of stimulating foreign direct investment in developing countries. It also provides advising services and insures investors against political and noncommercial hazards.

Q15. What is IMF? Write its objective and functions.

Ans: The IMF was established with the primary goal of developing an orderly international monetary system, which includes facilitating international payments and adjusting exchange rates between national currencies.

Objectives

• Facilitate the expansion of balanced international commerce and contribute to the promotion, maintenance of a high level of employment through the establishment of a permanent institution.
• Assist in the construction of a multilateral system of payments for current transactions between members to enhance exchange stability and preserve orderly exchange arrangements among member nations.

Functions

• Acting as a short-term credit institution.
• Providing machinery for the orderly adjustment of exchange rates Acting as a short-term credit institution.
• Provision of necessary facilities to ensure that the exchange rates are adjusted timely and orderly
• Acting as a repository for all member countries’ currencies.
• Acting as a foreign currency and current transaction lending institution Determining the value of a country’s currency and altering it.
• Providing machinery for international consultations.

Q16. What incentives and schemes are provided by government for country export?

Ans:  The following are schemes and measures of promotion foreign trade:

1. Duty drawback scheme 

• Duties paid on export products are repaid to exporters upon presentation of proof of these commodities’ exports to the appropriate authorities. Duty drawbacks are the term for such returns.
• Refund of excise duties paid on items intended for export, as well as refund of customs duties paid on raw materials and machines imported for export manufacturing, are some of the key duty drawbacks. The latter is also referred to as a “customs drawback.”

2. Export manufacturing under bond schemes

• This facility allows businesses to make goods without having to pay excise and other taxes.
• Firms wishing to use this service must provide an assurance (i.e., a bond) that they are making items for export.

3. Exemption from payment of sales taxes

• Sales tax does not apply to goods intended for export.
• For certain years, this benefit of income tax exemption is only available to 100% Export Oriented Units (100% EOUs) and units established in Export Processing Zones (EPZs)/Special Economic Zones (SEZs).

4. Advance license scheme

• The exporter is permitted duty-free access to domestic and imported inputs for the production of export goods.
• As a result, the exporter is exempt from paying customs tax on goods imported for the purpose of making export goods.
• Advance licences are accessible to both regular and irregular exporters.

5. Export Promotion Capital Goods Scheme (EPCG)

• Allows export enterprises to import capital goods with no or low customs taxes, subject to real user conditions and the fulfilment of specific export obligations.
• This scheme is especially useful to industrial units looking to modernise and upgrade their existing plant and machinery.

6. Scheme of recognising the export firms and trading houses. 

• The government provides the designation of Export House to a firm that has achieved a stipulated average export performance in previous select years, with the goal of promoting established exporters and assisting them in marketing their products in foreign markets. 
• Apart from achieving a minimum of previous average export performance, such export enterprises must also meet other requirements outlined in the import-export policy.

7. Export of services

• The goal is to increase service exports.
• The service houses are set up and awarded based on the service providers’ export performance.
• Service Export House, International Service Export House, and International Star Service Export House are some of the terms used to describe them.

8. Export finance

• Exporters require funds to manufacture their goods.
• Authorized banks make two types of export financing available to exporters.
• Pre-shipment finance: Also known as packing credit is money given to an exporter to help them finance the acquisition, processing, manufacturing, or packaging of products for export.
• Post-shipment finance: Under this plan, funds are made available to the exporter from the time the loan is extended until the items are delivered to the destination country.

9. Export processing zones

• Export Processing Zones are industrial estates that emerge from the Domestic Tariff Areas (DTA) to form enclaves .
• They’re generally found around airports or ports.
• They’re designed to provide a low-cost, internationally competitive duty-free environment for export production.
• EPZs have recently been upgraded to Special Economic Zones (SEZs), which are a more advanced version of export processing zones. All laws and regulations controlling imports and exports are waived in these SEZs.

10. 100 percent Export Oriented Units (100 percent EOUs)

• EOUs were created with the goal of increasing export production capacity by providing an adequate policy framework, operational flexibility, and incentives.
• It follows the same production process as before, but it gives you more options for where you want to make your product.

Q17. Identify the documents highlighted in the following statements:

(i) This document is issued by the commanding officer of the ship to the exporter after cargo is loaded on the ship.

Ans: Mate receipt: It is a receipt provided by the ship’s commanding officer when the cargo is loaded on board, and it contains information such as the vessel’s name, berth, date of shipping, package description, marks and numbers, cargo condition at the moment of receipt on board the ship, and so on.

(ii) This document is prepared by shipping company to acknowledge the receipt of goods on ship and gives an undertaking to carry them to the port of destination.

Ans: Bill of lading: After receipt of the freight, the shipping company issues a bill of lading which serves as an evidence that the shipping company has accepted the goods for carrying to the designated destination.

(iii) This document is the most appropriate and secure method of payment to settle international transactions.

Ans: Bill of exchange: When the bill of exchange is received, the importer either releases the money in the event of a sight draught or accepts the usance draught for payment on the bill of exchange’s maturity date. The money is received by the exporter’s bank via the importer’s bank and credited to the exporter’s account. By signing a letter of indemnity, the exporter might receive quick money from his or her bank upon submission of paperwork.

(iv) On the basis of this document, the customs office grants permission for the export.

Ans: Shipping bill: It is the main document on the basis of which the customs office permits to export.The exporter prepares the shipping bill in order to gain custom clearance.

(v) This document is prepared by the importer and it shows the details of goods imported.

Ans: Import order: This document is generated by the importer and contains the following information on the products imported: The import order includes information on the price, amount, size, grade, and quality of the items ordered, as well as packing, shipping, ports of shipment and destination, delivery date, insurance, and payment methods.

(vi) On the basis of this document imported goods are unloaded from the carrier. 

Ans: Import manifest:  Imported items are unloaded from the container using this document:He supplies an import general manifest paper. An import general manifest is a document that contains information on the products being imported.

Q18. Mr. Manchanda is a business man in Gurgaon he manufactures scooters. His son after doing an MBA in the USA returns to India and suggests that they should set up a fully owned factory in Bangkok for supplying to customers in the South East Area and Middle East. Mr. Manchanda however does not agree to his proposal and wants to set this unit in South India. They are having a debate on this. In your opinion with whom you agree. Give reasons to support your answer.

Ans: I would agree to set up a wholly-owned factory i.e. wholly-owned subsidiary in Bangkok for supplying customers in the South East area and the Middle East area.

Companies that desire complete control over their overseas activities prefer a wholly owned subsidiary as an entrance route into international company.

It can be determined in two ways:

• Setting up a new firm.
• Acquiring an already settled and established firm in the foreign country and further using it to manufacture as well as promote the products within the host country. This allows it to maintain complete control over the company’s activities. 

Benefits of doing business Internationally are:

• Cost of transportation from India will be reduced by setting up a production plant overseas.
• It will make the Manchadas more closer and nearer to their overseas customers.
• Business firms can earn more profits by selling their products in countries with high pricing when local prices are lower.
• The company can exercise full control over its operations.
• Making use of excess production capacity in order to increase operational profitability.
• When demand in the home country dries up, the corporation might look to developing countries for expansion opportunities.
• When domestic market competition is fierce, internationalisation appears to be the only way to grow significantly.
• The desire to become more international stems from a want to expand, a desire to become more competitive, a desire t

• Cost of transportation from India will be reduced by setting up a production plant overseas.
• It will make the Manchadas more closer and nearer to their overseas customers.
• Business firms can earn more profits by selling their products in countries with high pricing when local prices are lower.
• The company can exercise full control over its operations.
• Making use of excess production capacity in order to increase operational profitability.
• When demand in the home country dries up, the corporation might look to developing countries for expansion opportunities.
• When domestic market competition is fierce, internationalisation appears to be the only way to grow significantly.
• The desire to become more international stems from a want to expand, a desire to become more competitive, a desire to diversify, and a desire to reap the strategic benefits of internationalisation.

NCERT Most important question:

Question 1.
Explain the importance and advantages of foreign trade.
Answer:
Importance of External Trade: Due to unequal distribution of natural resources and skills of different countries, foreign trade is the only solution to specialise in the production of those goods for which a large number of resources and facilities available in a country and export the surplus production to other countries and simultaneously make imports other goods from some other country.

Foreign trade makes available the goods to the consumers of countries where they are not produced. Thus, it improves the standard of living of the people. Foreign trade is also important for the economic development of a nation. Capital equipment and scarce raw materials can be imported. Similarly, surplus commodities can be exported to other countries and foreign exchange may be earned.

Advantages of Foreign Trade:
The advantages of foreign trade are discussed below –
1. Optimum use of Resources: Foreign trade leads to the international division of labour and specialisation. It reduces wastage of resources resulting from the production of uneconomic goods. The resources are also used efficiently.

2. Standard of Living: International trade helps the people living in different countries to raise their standard of living by providing goods and services which cannot be produced economically in a particular country.

3. International Relations: Foreign trade makes different countries dependent upon each other. A country having surplus products can sell its surplus stock to the deficient countries and a country having a deficiency of a product can import it from another country. This promotes goodwill and cordial relations among the nations of the world.

4. Stabilisation of Prices: Foreign trade leads to stabilisation of prices of commodities throughout the world by adjusting demand and supply. This would not have been possible in the absence of foreign trade.

5. Employment: Foreign trade helps in increasing employment opportunities in the export-oriented industries.

6. Economies of Large-scale: Foreign trade facilitates the specialisation of a country in the production of certain goods. This will help to carry on the production of some commodities not only for home consumption but also for external consumption. This will lead to several economies of large scale production. The resources will also be utilised in a better way.

7. Growth of Economy: Under-developed and developing countries can exploit their unutilised natural resources with the import of technical know-how, machinery and equipment from the advanced countries.

Question 2.
Differentiate between Internal (Home) Trade and Foreign (external) Trade.
Answer:
Difference between Home Trade and Foreign Trade:

Basis	Internal Trade	External Trade
1. Meaning	It means trade conducted within the boundaries of a country.	It means trade between traders of two different countries setting at for from places.
2. Restrictions	There are no restrictions on the volume of the home trade.	There are several restrictions on the volume of foreign trade, e.g., licensing, quota, tariffs, exchange control, etc.
3. Transport	It uses locally available means of transport.	It uses the sea and other modes of transport. Due to long distances, transport cost is higher.
4. Risk	It involves comparatively less risk in transit.	It involves several risks in transit. Sea transport carries more risks compared to surface transport.
5. Foreign Language	There is no problem with foreign language and culture.	The difference between language and social set up of different countries hinder the free flow of trade.
6. Payments	Payments can be made in cash or through cheque. It is easier to collect payments.	Payments are made through banks. The procedure of payment is time-consuming and cumbersome.
7. Currency	Trade is carried in terms of the currency of the country.	Currencies of the two countries are involved. The exchange rate between the two has to be fixed.
8. Laws	National laws, rules and regula¬tions govern the internal trade.	Laws of the respective countries, international law and customs govern the external trade.

Question 3.
Explain the various terms used in foreign trade.
Answer:
Terms used in external trade:
Some of the important terms used in export trade are given below –

1. Free on Board (FOB): The importer has to bear all costs and risks of loss or damage from the port of shipment.
2. Cost and Freight (C&F): Under this contract, the exporter is expected to deliver the goods at the port of shipment. The freight charges are payable by the exporter. The importer bears the risk of loss or damage to the goods after this destination. C&F price consists of the FOB price plus freight charges.
3. Cost, Insurance and Freight (CIF): Under CIF contract, the exporter bears the costs and freight for bringing the goods to the port of destination. It includes charges of insurance against the risks of loss or damage to the goods during transit.

Question 4.
Differentiate between Bill of Lading and Charter Party.
Answer:
The distinction between Bill of Lading and Charter Party:

Points of Distinction	Bill of Lading	Charter Party
1. Receipt	It is a receipt of goods on board the ship.	It is not a receipt of goods.
2. Document of title	It is a document of title to the goods.	It is not a document of title.
3. Transferability	It can be transferred freely by endorsement and delivery.	It cannot be transferred.
4. Lease	It is not a lease of the ship.	It is a lease of the ship.
5. Use	It is used when a part of the ship is to be hired.	It is used when the whole ship is to be hired.
6. Stamp	It requires a 25 paise stamp.	It requires a stamp of higher value.
7. Control	Shipowner always retain control on the ship	Shipowner loses control of the ship for a temporary’ period.
8. Crew	Master and crew remain agents of the shipowner.	Master and crew become agents of the exporter for a temporary’ period.
9. Types	(a) Clean(b) Foul	(a) Voyage charter(b) Time charter
10. Collateral security	It can be used as collateral to borrow money.	It can no he used as a collateral-dl to borrow none’.
11. Clauses and Warranties	Does not mention loading and unloading day and lay days.	Mentions days allowed for loading and unloading and lay days.

Question 5.
Explain the various methods of payment in External Trade.
Answer:
External Trade payment can be made through various methods. The important methods for payment of international trade are as follows:

1. Advance Payment
2. Open Account
3. Documentary Bills
4. Letter of Credit
5. Direct Remittance
6. International Credit Card.

1. Advance Payment: Advance payment means the payment made along with the order by the importer as the exporter is always interested in advance payment of the goods exported. The importer can send payment to the exporter by means of:
(a) Bank Draft.
(b) International Money Order.
(c) Telegraphic/Mail Transfer.
(d) Electronic Transfer.

2. Payment against Open Account: Exporter generally ship the goods and send the shipping documents to the importer and make debit his account for the payment due on goods sent. The importer may make periodic payments against his account. This is convenient for both the exporter and the importer. The exporter is relieved of the botheration of drawing and discounting the bills of exchange. The importer is relieved of the botheration of accepting bills of exchange or getting letters of credit in favour of the exporter.

3. Documentary Bill: The exporter draws a bill of exchange on the importer. The bill may be

• Sight Bill, or
• Usance Bill.

In case of a sight bill, the importer has to make the payment immediately and obtain the shipping documents/ This mode is known as Documents against Payment (D/P). In case of a usance bill, the exporter is given some time to make the payment. However, documents are passed on to him against acceptance of the bill. It is known as Documents against Acceptance (D/A) bill.

The exporter draws a bill of exchange on the importer and attaches to it shipping documents such as a bill of lading, insurance policy, invoice, consular invoice, certificate of origin, and certificate of quality. Such a bill is known as a documentary bill. It is sent through the exporter’s bank which will present it to the importer through his bank or agent. Documentary bills may be of two types:

1. D/A Bill: In case of documents against acceptance, the bank will hand over the shipping documents to the importer when the latter gives acceptance on the bill of exchange.
2. D/P Bill: In case of documents against payment bill, the documents are to be released by the bank only on the payment of the bill either at the time of presentation or within a specified period of time.

4. Letter of Credit: The exporter can request the importer to open a letter of credit with his bank in favour of the exporter. When such an arrangement is made, the importer’s bank will accept the bill of exchange drawn by the exporter under the terms of the letter of credit. After acceptance, the bill is returned to the exporter who can get it discounted with his bank. He can also wait till the period of maturity and instruct his bank to collect payment on its maturity from the importer’s bank.

5. Direct Remittance: Under this method, the exporter sends the goods to the importer and also passes on the shipping documents to him. After receipt of documents, the importer can remit the payment to the exporter through the banking channel or telegraphically. This method involves risk for the exporter as the importer may not send the payment in time.

The modes of direct remittance are as follows –
1. Bank Draft: Bank draft is a popular method of making payment in respect of foreign transactions. A bank draft is issued in favour of the exporter by a commercial bank on receipt of the necessary amount.

In fact, a bank draft is a sort of cheque drawn by a bank on its foreign branch, directing the foreign branch to pay the specified amount of money in a particular currency to the person named in the bank draft. The bank charges a nominal commission for providing this service.

2. Telegraphic Transfer: Under this method, there is a transfer by the telegraph or cable of bank deposits from one country to another. As in case of bank draft, the money is deposited with the importer’s bank which will in return send a telegram to its bank in the exporter’s country to pay a specified amount either to the exporter or his bank.

This method of making the transfer is adopted only when the traders are in a hurry to settle accounts. This method is costlier as compared to other methods. That is why it is not commonly used.

6. International Credit Card: Multinational banks issue international credit cards to importers whose financial position are very sound. They make payment through these cards to the exporter for the goods shipped.

Question 6.
What is special Economic Zones (SEZ’s) Explain their benefits in brief?
Answer:
Special economic zones have been set up with a view to encouraging free trade for the pair of promotion of exports. A special Economic Zone is a duty-free enclave deemed to be foreign territory for the purpose of trade operations and duties and tariff. Goods going to SEZ area shall be treated as “deemed exports.” Goods coming from the SEZ area into DTA (Domestic Tariff Area) shall be treated as imported goods. An SEZ may be set up in the public, private or joint sector or by the state government as notified by the control government.

Special Economic Zones (SEZs) Meaning & Functions: A SEZ is a specifically delineated duty-free enclave and is deemed as a foreign territory for the purposes of trade operations, duties and tariffs. SEZ units may be set up for manufacture of goods and rendering of services, products, processing, assembling, trading, repair, remarking, reconditioning, re-engineering including making of gold/silver/platinum jewellery or tides thereof or in connection therewith.

The EPZs are being converted into SEZs. At present, there are four SEZs in India. The only difference between EPZs and SEZs is that in an EPZ customs permission is necessary for taking the raw material from one place to another, but it is not needed in an SEZ.

The SEZs are not subjected to any predetermined value additions, export-obligations, input/output wastage norms and are treated as outside the customer’s territory.

Under the Export-import (EXIM) Policy 2002-2007, SEZs would get income tax benefits. The advantage would be that the tax concession; would be available for the full tax concession period and not curtailed by the expiry of a notified date as happens now. Currently, income tax concessions for SEZs are for 10 years or 2009-10 whichever is earlier. Offshore banking has been presented in India for the first time.

This will provide units in the SEZ access to funds from abroad at international rates. This means that the cost of funds for the exporters from the SEZs would be less. Exporters in the SEZs wanting to raise ADRs/GDRs also need not go to the US and Europe. Sitting here, they will be able to do so using the overseas banking units (OBUs) set up in the SEZs. Units in the SEZs would be able to get world-class security in their backyard itself without having to go looking for it elsewhere. SEZs in India would become more attractive to foreign investors.

SEZs: described as the “best of our dream projects”: would also benefit in a big way with the government deciding to treat bank branches in these zones as overseas branches free of CRR, SLR and priority sector lending requirements. This would help SEZ units, as well as developers in bringing down the cost of funds as overseas branches of Indian banks, are in a position to lend at much lower rates than those prevailing in the Indian market.

SEZ units will also have the freedom to carry out hedging in commodities, make liberal overseas investments out of their export earnings and borrow overseas without being hindered by existing regulations. Ultimately, this could lead the banking sector to go in for global banking centres which can operate like offshore facilities despite their location on Indian soil.

The new exam policy has given a leg uH to banking sector reforms by permitting Indian banks to set up overseas banking units in SEZs. This means that exporters operating out of the SEZ units and developers would be permitted to hold dollar accounts and the OBUs operating out of the SEZs would be able to deal in multiple currencies. Additionally, through OBUs, exporters in SEZs would have access to financing at international costs.

This is because the OBUs would be exempt from CRR, SLR and priority’ sector lending requirements, which would permit them to operate on par with their overseas branches. Under the new scheme, foreign banks registered in India would also be permitted to set up OBUs in SEZs through the finer details of the scheme would be announced later.

Benefits available to Units in SEZs:

1. They can import goods without payment of duty.
2. Reimbursement of central sales tax.
3. Exemption from payment of central excise duty on all goods eligible for procurement.
4. Reimbursement of central excise duty, if any, paid on bulk-tea procured by SEZ units so long as a levy on bulk tea in this regard is in force.
5. Reimbursement of duty paid on fuels or any other^goods procured from DTA as per the rate of drawback notified by the Directorate General of Foreign Trade from the date of such notification.

Question 7.
Explain the various agreements of WTO.
Answer:
WTO Agreements As against GATT which covered only rules relating to trade in goods, the WTO agreements cover trade in goods, services as well as intellectual property. WTO Agreements make the government responsible to formulate the policies and procedure and make them transparent in order to avoid disputes among the nations. Major WTO agreements are discussed below:

Agreements Forming Part of G ATT: The erstwhile General Agreement on Tariffs and Trade (GATT) after its substantial modification in 1994 (effected as part of the Uruguay Round of negotiations) is very much part of the WTO agreements. Besides the general principles of trade liberalisation, GATT also includes certain special agreements evolved to deal with specific non-tariff barriers. Some of the specific agreements contained in the GATT are listed in the bank on GATT 1994 major agreements.

Agreement on Textile and Clothing (ATC): This agreement was evolved under WTO to phase out the quote restrictions as imposed by the developed countries on exports of textiles and clothing from the developing countries. The developed countries were imposing various ends of quota restrictions under the Multi-Fibre Arrangement (MFA) that itself was a major departure from the GATT’s basic principle of free trade in goods.

Under the ATC, the developed countries agreed to remove quota restrictions in a phased manner during a period of ten years starting from 1995. ATC is considered a landmark achievement of the WTO. It is due to the ATC that the world trade in textile and clothing has become virtually quota-free since 1st January 2005, thus, benefiting immensely the developing countries to expand their textiles and clothing exports.

Agreement on Agriculture (AoA): It is an agreement to ensure free and fair trade in agriculture. Though original GATT rules were applicable to trade in agriculture, these suffered from certain loopholes such as exemption to member countries to use some non-tariff measures such as customs tariffs, import quotas and subsidies to protect interests of the farmers in the home country. Trade-in agriculture became highly distorted especially due to the use of subsidies by some of the developed countries.

AoA is a significant step towards an orderly and fair trade in agricultural products. The developed countries have agreed to lower down the customs duties on their imports and subsidies to the exports of agricultural products. Due to their higher dependence on agriculture, the developing countries have been exempted from making similar reciprocal offers.

General Agreement on Trade in Services (GATS): Agreements are applicable to services also like on goods or merchandise, although services are intangible and cannot be toughed like commodities. GATS is regarded as a landmark achievement of the Uruguay Rbiind as it extends the multilateral rules and disciplines to services. It is because of GATS that the basic rules governing ‘trade in goods’ have become applicable to trade in services.

Three major provisions of GATS governing trade in services are as follows –

• All member countries are required to remove restrictions on trade in services in a phased manner. The developing countries, however, have been given greater freedom to decide about the period by which they would liberalise and also the services they would like to liberalise by that period.
• GATS provides that trade in services is governed by ‘Most Favoured Nations’ (MFN) obligation that prevents countries from discriminating among foreign suppliers and services.
• Each member country shall promptly publish all its relevant laws
  and regulations pertaining to services including international agreements pertaining to trade and services to which member is a signatory.,

Agreement on Trade-Related Aspects of Intellectual Property’ Rights (TRIPS): The WTO’s agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) was negotiated in 1986-1994. It was the Uruguay Round of GATT negotiations where for the first time the rules relating to intellectual property rights were discussed and introduced as part of the multilateral trading system. Intellectual property means information with commercial values such as ideas, inventions, creative expression and others.

The agreement sets out the minimum standards of protection to be adopted by the parties in respect of seven intellectual properties, viz., copyrights and related rights, trademarks, geographical indication, industrial designs, patents, layout design of integrated circuits, and undisclosed information (trade secrets).

NCERT Most important question:

Question 1.
Differentiate between wholesalers and retailers.
Answer:
Difference between Wholesaler and Retailer:

Basis	Wholesaler	Retailer
1. Scale of Operations	Deals in large quantities and on a large scale.	Deals in small quantities and on a small scale.
2. Number of items	Handles a small number of items.	Handles a large number of items.
3. Trade Channel	First outlet in the chain of distribution	The second outlet in the chain of distribution
4. Customers	Sells to retailers and industrial users.	Sells directly to customers for final consumption.
5. Supplies	Receives goods from manufacturers/producers.	Receives goods from wholesalers and sometimes, from the manufacturers.
6. Location	The location of a wholesaler’s shop is not very important. A wholesaler may have a godown at any place.	Location of retailer’s shop near the residential areas is very important. It located in the heart of the city.
7. Window Display	The window display is not very important.	The window display is a must to attract customers.
8. Specialisation	Specializes in the products he deals in	Specialization is not possible as he deals in a large number of products produced by different producers.
9. Margin of Profit	Sells at a very low margin of profit as turnover is very fast.	Sells at a higher margin of profit as he has to spend on window dressing and pay higher rent for the shop at a central place.
10. After-Sale Service	Does not provide after-sale service.	Provides aftersale service.
11. Free Home Delivery	Does not provide free home delivery of goods to customers.	Provides free home delivery of goods to Customers.
12. Display	No window dressing and shop decoration are important.	Window-dressing and shop decoration are much more important to attract customers.

Question 2.
Mention the services provided by wholesalers to retailers.
Answer:
Services to Retailers:
Wholesalers render the following services to retailers –
1. Wide Variety: A retailer has to stock a large variety of products to meet the individual tastes and needs of its customers. Since he can easily purchase the required goods of different varieties from a wholesaler, he is relieved of the botheration of collecting goods from several manufacturers.

2. Regular Supplies: A wholesaler is always well stocked with different types of goods. Therefore, the retailers are assured of a quick and regular supply of their requirements from time to time. They need not maintain a large stock of goods and have no fear of running out of stock. The wholesaler serves as their warehouse keeper from whom they can quickly replenish their stocks. The wholesaler saves the retailers from the trouble of searching out and assembling goods from several manufacturers.

3. Specialisation: The wholesalers generally specialize in one line of goods. They buy good quality goods at the minimum possible price from the manufacturers. Retailers receive the benefit of such specialization when they buy goods from wholesalers. Wholesalers advise retailers on matters like quality, price, and timing of purchase. They inform the retailers about the new products, their uses, quality, prices, etc. They may also advise on the decor of the retail outlet, allocation of shelf space, and demonstration of certain products.

4. Publicity: Wholesalers advertise their goods regularly. Such publicity helps retailers in increasing their sales. Some wholesalers also guide retailers’ in-store layout and selling techniques. The retailers are benefited as it helps them in increasing the demand for various new products.

5. Credit: Wholesalers grant liberal credit facilities to retailers. As a result, retailers can carry on a large volume of business even with a small amount of working capital. They would be placed in a difficult position if they were to buy goods on cash payment.

Question 3.
List the various types of retail trade organizations.
Answer:
Types of retail trade organization:
Retail traders may broadly be classified into two categories –

Question 4.
Explain the automatic vending machine as a source of retail trade.
Answer:
Automatic Vending Machines:
A vending machine is a new and complementary form of retailing. It is a slot machine operated by coins or tokens. The buyer inserts the coin or a token into the machine and receives a specified quantity of a product from the machine. Vending machines are used to sell prepacked and low-cost products of mass consumption, soft drinks, hot beverages, cigarettes, tickets, etc. In Delhi, Mother Dairy sells milk through vending machines.

The vending machines have become popular due to convenience in the handling of products and in the collection of payment. The customer gets a fresh supply of goods with uniform weight and quality. Moreover, vending machines can sell goods at places and at times when other types of retailing are not convenient or economical. There is a saving of labor costs. But initial investment in the machine is quite high. The machine requires regular repairs and maintenance.

The merits of vending machines are as under –

1. It is convenient for the customers to buy the goods from the machine.
2. Machines provide quick service.
3. Machine develop the habit of self-service among the customers.
4. Special peeks are to be developed by manufacturers that suit the machine.
5. Care has to be taken about replenishing the stock of the machine regularly.
6. Machines are useful in selling only consumer goods that are usually edible in nature i.e. candies, chocolate, soft drinks, coffee, etc.

Question 5.
Write an essay on the organization of wholesale trade.
Answer:
Organization of Whole Trade Board of Directors

Wholesale trade is generally carried on a large scale and a large amount of capital investment is required for it. Therefore, a wholesale firm is generally organized in the form of a joint-stock company or a partnership. The company works under the overall supervision of the board of directors and the managing director. The organization is divided into sections. Every section is managed by a sectional head. All sectional heads are responsible to the managing director. Each section is divided into various departments. The head of each department is accountable to the sectional head concerned.

The organization of wholesale trade may be divided into the following sections –
1. Administrative Section:
This section looks after the overall planning and control of the wholesale trade. It is usually divided into several departments.
(a) Records and filing department: This department handles the firm’s records and files. Filing relates to having records of the business correspondence for future reference. Proper binding is also necessary for an easy and quick location of files, whenever required.

(b) Correspondence department: This department is responsible for the receipt, typing, and despatch of all letters. Timely and prompt reply of all incoming letters is essential for the success of a business. A copy of every letter sent by the firm is sent to the filing department for ready reference.

(c) Accounts and finance department: This department is concerned with the proper maintenance of the firm’s accounts. These accounts are related to the firm’s purchases, sales, receipts, payments, debtors, creditors, etc. This department is also responsible for preparing budgets and raising the necessary funds for a business. This department works under the supervision and control of the chief accountant and clerks working under him.

(d) Labour department: This department is responsible for the recruitment, selection, training, remuneration, promotion, etc. of employees.

2. Cash Section:
This section is concerned with the receipt and payment of cash. It is the responsibility of this section to ensure that all payments are made promptly and on the due dates so that the firm enjoys a good credit standing in the market. Similarly, this department takes steps for prompt collection of debts from the firm’s debtors in order to minimize bad debt losses. For handling small payments, there is a petty cashier who is provided a small amount of impress cash. When he has spent the entire amount, the head cashier advances him some more important cash.

In some wholesale firms, there is a separate credit and collection department which keeps a check on the credit sales.

3. Planning and Executive Section: This section consists of the various functional departments.
(a) Buying department: This department is concerned with buying goods in bulk from different producers. Before buying goods it invites Quotations from the producers. After comparing different quotations with regard to price, quality of goods, delivery period, etc. it places its orders.

When the goods are received, they are compared with the order. If there is any discrepancy or damage to goods, the matter is duly settled with the supplier. After receiving the goods, arrangements are made for their storage. The buying department is headed by an expert buyer who has complete knowledge of the various producers and the market conditions.

(b) Sales department: This department is responsible for selling the goods to retailers. It conducts market surveys to find out the tastes, fashions, etc. of the customers and other market conditions. This information is passed on to the buying department. The sales department also handles the complaints of retailers. The sales manager is the head of this department. Several salespersons work under him. Their recruitment, training, remuneration, etc. is also the responsibility of the sales manager.

(c) Publicity department: This department is concerned with advertising goods in order to create demand. It also arranges fairs and exhibitions of products.

(d) Despatch department: The function of this department is to despatch goods to various retailers according to the instructions it has been given. It handles packing, marking, and labeling of goods and arranges for the delivery of goods to the retailers. Many wholesale firms have a separate warehousing department also.

Question 6.
What are multiple shops or chain stores? Explain its features, merits, and limitations.
Answer:
Chain-Stores (Meaning): Chain stores or multiple shops are a group of branch shops dealing in the same line of goods under single ownership and centralized management. A chain store is a chain of identical retail stores situated in different localities. Such a chain may be established by a manufacturer or by a merchant. It is known as chain stores in the United States and multiple shops in Europe. Bata Stores and DCM Stores are examples of chain stores in India. These normally deal in standardized and branded consumer products that have rapid sales turnover.

Distinctive Features:

1. Large Size: Chain stores are an example of large-scale retail establishments. These are located popularly in the area where a sufficient number of customers can be approached.
2. Company Form: These stores are organized as a joint-stock company. All stores are owned and controlled by the same company. There are centralized management and control.
3. Specialization: All stores in a chain deal in the same line of products, usually necessities.
4. Centralized Purchasing: Goods for all chain stores are purchased by the head office. Through centralized purchasing. These shops enjoy economies of scale.
5. Decentralized Selling: Chain stores are situated in different parts of the city and country. These shops are run by the same organization and have identical merchandising strategies.
6. Elimination of Middlemen: A chain store is a form of direct selling in which middlemen are eliminated.
7. Uniform Price: Goods are sold in all the stores at a fixed price.
8. Standardization: Decoration of stores and window displays follow a uniform style or pattern.
9. Cash Sales: Goods are sold on a cash and carry basis. There is no loss on account of bad debts.

Merits:
1. Economics of Scale: Goods for all chain stores are purchased by the head office. Such bulk buying results hr several economies like heavy discounts, saving in transport costs, etc. Benefits of specialization and centralized management are also available. Large capital permits expansion and growth.

2. Convenient Location: Chain stores are located to suit the conveniencFoftheeustometa. This helps in increasing sales turnover and in retaining contact with customers. These shops me located in fairly populous localities where a sufficient number of customers can be approached.

3. Low Operating Costs: Chain stores sell goods on a cash basis H so that there is no loss due to bad debts. There is an economy in advertising because one advertisement is enough for all the stores. Large and rapid turnover and common advertising are possible.

4. Low Price: Due to low operating costs and the elimination of middlemen, goods are sold at relatively cheaper rates. A manufacturer can establish direct contact with customers through chain stores.

5. Flexibility: If one store out of stock, supplies can be easily transferred from a nearby store belonging to the same chain. Such inter-branch transfers help to avoid loss due to shortage or surplus of stock. If a branch is not doing well it can easily be closed down and a new one can be opened in another place without really affecting the profitability of the organization as a whole.

6. Public Confidence: Fixed prices arid standard quality help to increase confidence among consumers. Customers can easily identify the chain stores on account of uniform decoration and design.

7. Diffusion of Risk: Lack of demand in one area 4oes affect the
sales in other stores. But the loss incurred by one store can easily be absorbed by profits made in other stores reducing the risk of an organization.

8. Simplicity of Control: Goods are sent to the different stores by the head, office and cash receipts are sent by each branch to the head office. Price and the other policies are uniformly laid down for all the stores. In this way, the office can exercise effective supervision and control over all the branches.

Limitations:
1. Limited Choice f Ghain deal in a limited range of products and do not offer a wide variety of choice to customers,

2. Lack of Personal Touch: The paid employees of chain stores do not take a personal interest in each and every customer Tltey adopt a ‘take it or leave it’ attitude towards the customers. The owner loses all personal contracts with the customer Lack of initiative in the employees some times leads to indifference and lack of personal touch in them

3. Lack of initiative: The employees of chain stores have no freedom to make decisions. Rigid control and uniform policies discourage initiative on their part. They cannot exhibit business opportunities or adapt to local needs. This makes them habitual of looking up to the head office for guidance on all matters and takes away creative skills of their own.

4. Heavy Overheads: The head office has to incur heavy expenditure on rent, wages, salaries, furniture, fixtures, etc.

5. No Facilities: Customers do not get credit, home delivery, or other facilities. Therefore, chain stores do not attract rich customers. This discourages certain types of people to visit multiple shops.

6. Local Competition: Chain stores are considered a threat to small independent retail stores. Therefore, local retailers are hostile towards these stores and offer tough competition.

7. Remote Control: The head office is usually far removed from the stores. Therefore, there is a lack of close contact between them.

Question 7.
Super Market is the most famous retail trade-in city. Mention its merits and demerits.
Answer:
Super Market (Self-Service Store):
Meaning:
A supermarket of Bazar is a large retailing business unit selling a wide variety of consumer goods such as food and grocery items on the basis of the low-margin appeal, wide variety, and assortments, self-service, and heavy emphasis on merchandising appeal.

A supermarket deals mostly in food and grocery items and convenience goods like household goods, hosiery items, cosmetics, medicines and drugs, electronic appliances, etc. It is generally situated at the main shopping center. Goods are kept in open racks, and the price and quality are clearly labeled on the goods.

A consumer can make a selection of goods moving from counter to counter and pick up the selected goods and place them in a trolly. After he has completed his selection, the trolly will be carried to the exit where a person computes the total charge and the buyer makes payment to the cashier and then takes delivery of goods. Thus, supermarket follows the policy of self-help’ by the customers. The customers are not pressurized by the salesmen. That is why many people are attracted to the supermarket.

The supermarket is organized on a departmental basis and a customer can buy various types of goods under one roof. A supermarket can be differentiated from the departmental store on the main ground that there are no salesmen at the super Bazar to deal with the customers. The customers are free to choose the commodities of their choice. Moreover, a supermarket does not offer certain services which are usually provided by a departmental store. For instance, a supermarket does not allow credit sales and does not provide free home delivery service.

Features:
The main features that distinguish a supermarket from other retail institutions are discussed below –

1. A supermarket generally carries a complete line of food items and groceries in addition to non-food convenience goods including drugs, cosmetics, household goods, etc.
2. Its organization resembles a departmental store. A customer can buy his requirements under one roof.
3. A supermarket operates on the principle of self-service. There are no salesmen or shop assistants to help or pressurise the customers in a supermarket. That is why it is known as a self-service store. The distribution cost is, therefore, lower.
4. A supermarket is a low-cost retail institution in comparison with Other types of retail stores. The prices of the products are generally lower than other types because of bulk purchasing, lower operational cost, and low-profit margins.

Merits:
The following are the merits of a supermarket –
1. A supermarket is a large-scale retailing store. It enjoys all the benefits of large-scale buying and selling. Because of this reason and because of large turnover, its operating costs are lower and it can sell goods at cheaper rates. These outlets are not only convenient but also economical to buyers for making their purchases.

2. Considerable attention is paid to the package of the products since there are no salesmen to convince and pressurize the customers. Many people like this distinct feature of self-service. They enjoy the freedom to ccunpar£-iii£fereat4minda of Q.product- and making a selection of goods without pressure from anybody.

3. The customers can make all their purchases under one roof. A supermarket provides goods to customers at cheaper rates because of large turnover and absence of salesforce. The administrative and distribution overheads per unit of a product are also lower.

4. Since supermarket sells only on a cash basis, there is no chance of bad debts.

Demerits:
A supermarket suffers from the following drawbacks –
1. There are certain people who give greater weightage to personal attention. Such people do not like shopping through the supermarket as there are no salesmen.

2. Supermarkets cannot handle commodities that require personal explanation by the salesmen. It works on the self-service principle.

3. Some customers handle the goods carelessly and misuse the ‘ opportunity of self-service and selection. This may cause loss to the supermarket.

4. In practice, supermarkets have not been able to create low price appeal among the customers because of higher overhead expenses.

5. Establishment and, running off a supermarket requires huge; investment, and its turnover should be higher to keep the overhead expenses under reasonable limits. Thus, a supermarket cannot be established if the necessary capital is not available and a Jarge turnover is not expected. In other words, supermarkets are not suitable for smaller towns.

Question 8.
Write in brief about Telemarketing or Teleshops in the modern world.
Answer:
Telemarketing (Teleshops): Telemarketing means a form of non-store retailing in which the seller initiates contact with a shopper ‘ and closes the sale over the phone. A telemarketer may procure the names and telephone numbers of his prospective customers from the telephone directory and other sources.

Popular products such as electrical appliances, health products, and educational aids and services such as magazine subscriptions, credit-card membership, etc. can be promoted through telemarketing. ICICI and Citibank follow this technique to popularise their credit cards among people.

A telemarketer can advertise the product, its features, uses, and price through a TV network, say Doordarshan, Metro, Zee TV, or Sony TV channel. The interested customer can place an order directly over telephone, fax, e-mail, or by post to the advertiser, say, Asian Sky Shop. The delivery may be effected through courier, or post office, or the manufacturer’s distribution van. Payment is to be made at the time of delivery. Telemarketing is a very convenient method of shopping. It is becoming popular in India.

From the point of view of the customer, buying or ‘dial-n-order’ is a very convenient method of shopping. One need not visit the store for shopping. One can place an order over the phone and make payment through a credit card. Teleshopping and getting free home delivery at residence is not only convenient but also cheaper as no middlemen are involved. The popularity of telemarketing would be attributed to the growing focus on customers.

From the point of view of the seller, telemarketing is a cheaper method of retailing. It saves expenditure on retail showrooms and salesforce. Even a firm with retail outlets or stores in major cities can reach customers at far off places through telemarketing. The growing satellite networks have created brand awareness and facilitated Telebuying and selling. The industry grew rapidly over 5 years to reach a size of2000crores with over one million consultants.

Telemarketing is a major tool of direct marketing in the USA and is gradually gaining acceptance in India. But telemarketing has the disadvantage of lack of personal touch with the buyers. Moreover, the buyer can’t inspect the goods personally before placing an order. Some people don’t like teleshopping. They get irritated when they receive unsolicited calls from the call centers, say, for the marketing of credit cards or personal loans.

Question 9.
What are Internet or Online marketing, its benefits, and the difference between traditional marketing and online marketing?
Answer:
Internet Marketing:
Internet marketing is emerging as an important form of e-commerce, In this form of marketing, orders are received and processed on the internet. The internet is the world’s largest computer network. In fact, it is a ‘network of networks’ of computers throughout the world. A computer network is basically a bunch of computers hooked together for receiving and transferring information.

The facility of linking millions of computers is provided through the internet. The use of the internet by marketers or producers for the purpose of selling their products is known as internet marketing. Internet marketing can take several forms e.g. Online services, worldwide webs (www), and CD ROMs.

Internet:
The internet is a global web or computer network that makes instantaneous global communication possible. Internet usage has surged with the development of the user-friendly World Wide Web (www) and Web browser software such as Microsoft Internet Explorer or Netscape Navigator. Users can surf the internet and send e-mails, shop for products, and can get news and other information.

The internet itself is free though the user has to pay some fee to the Internet Service Provider to be hooked up to it. Thus, the internet is changing the way marketing is done. Internet technology provides marketers with faster ‘ more efficient and much more powerful methods of designing, promoting, and distributing products, conducting research, and gathering market information.

Online Marketing:
The users of the internet are younger, educated, and more affluent. Business firms can use the internet to reach such users by sending catalogs, price lists, etc. through e-mail. Besides advertisement, the sellers can attend to the queries of the buyers and clinch the deal on-line. The buyers can on their own also log on the t computer to know about the products of different manufacturers and decide to buy the products that suit them.

The use of electronic channels for the direct marketing is on the rise these days. The term e-commerce describes a wide variety of electronic platforms such as the sending of purchase orders to suppliers via electronic data interchange (EDI), the use of fax and e-mail to conduct transactions, the use of ATMs (automated teller machines) and smart cards to facilitate payments and obtain digital cash and the use of internet an online > services.

Thousands of business firms have established their presence on the internet. A new firm, big or small, can do so in two ways:
(a) It can buy space on a commercial on-line service; or (b) It can open its own website. In the case of online service, the firm has to pay an annual fee and also a small commission as a percentage of sales.

But these days, companies prefer to set up their own websites. Such a website offers information * about the company’s history, products, and services. The company can interact with anyone visiting the website and explore the possibility of concluding sales.

Benefits of Online Marketing:
The marketers can enjoy the following benefits of internet marketing –

1. The cost of digital catalogs is much less than the cost of printing and mailing paper catalogs;
2. Digital catalogs can be revised quickly and without much difficulty.
3. The marketers achieve economy in operations. They have to maintain low inventories and incur low costs on storage and insurance.
4. Internet marketing helps in relationship building with the customers. Online marketers can interact with customers and learn from them and improve their products.
5. Marketers can contact the people who have visited their website and make them attractive offers to affect sales.
6. Orders can be received quickly.
7. The marketers can approach customers living anywhere in the world. Thus, there is no distance gap between the sellers and the buyers.
8. Marketers can size up the audience, know how many people visited their online site. This information helps in improving sales offers and advertisements.
9. Online marketers can build relationships with customers by interacting with them.

Comparison of Online and Traditional System of Marketing

	Online Shopping	Traditional Shopping
Advantages	ConvenienceSaves timeReduces impulse buying	Five senses influence buyingMemory triggerProduct sampling Exposure to new items Social interaction
Disadvantages	Less price and selection controlForget itemsReliance on computerDelivery fee	Time-consumingWaiting for lines and parkingCarrying groceries homeImpulse buying Safety

Question 10.
A franchise is a buzzard in the modern marketing world. What are its merits and limitations?
Answer:
Franchise: Franchise is a commercial concession by which a company or person grants a retailer the right of selling its products or services in a specified area. The owner of a product (known as a franchiser) permits another business firm (called franchisee) to sell the product in exchange for royalty payments.

The franchise is the right or privilege to use an established business system is “a continuing relationship in which franchisee provides licensed privilege to do business plus assistance in organizing, training, merchandising and management in return for a consideration from the franchise.” A franchising operation is a contractual relationship between a franchiser and franchisee.

Thus, the franchise is a system under which the owner of a product or service grants the franchisee the exclusive right to distribute the product or service in a specific geographical area on specified terms and conditions. The owner of the product or service who grants the right to distribute is known as the franchiser. The person or firm who acquires the right or franchise is called the franchisee.

A franchise system is one in which a manufacturer grants selected retailers the exclusive right to sell their products or services in specified areas. Such retailers are required to promote and sell the product in a specific manner. There is a written agreement between the franchiser (supplier) and the independent franchisee (retailers) on the terms and conditions of the franchisee.

The franchise is found in several types of businesses. Consumer items such as cosmetics, readymade garments, television sets, V.C.R., music system, computers, machinery and equipment, automobiles, servicing of consumer durables, computer training, real estate are some of the examples where the franchise is popular. Wimpy, Nirulas, Essex farms, Snowhite Drycleaners, etc. are notable examples of franchises in India.

The franchiser receives either a fixed sum or periodical royalties for allowing the use of trademark and providing training. The franchisee pays for a reliable and proven business. He gets professional advice and national sales promotion support from the franchiser. Generally, all franchised outlets of a product or service have an identical trademark, standard symbols, standardized products, and uniform business policies. The franchisee has to raise his own finances.

Franchise arrangements may be of the following types –
1. Product and Trade Name Franchise: In this arrangement, the franchisee acquires the right to use the product and trade name of the franchiser. The franchisee can also use window-display, standardized operating procedures,s and a prescribed territory to the franchisee.

2. Exclusive Dealership: Under this system, a manufacturer signs an exclusive agency contract, with a distributor. The distributor gets the exclusive right to sell the product within a specified geographical area. The distributor agrees to certain conditions of the manufacturer, e.g. adequate stock, prices to be charged, the services to be provided, etc. The exclusive dealership is popular in automobiles.

3. Conversion Franchising: Herein an established businessman gets affiliated with a franchiser. The two share the benefits of a franchising relationship.

4. Combination Franchising: In this arrangement, two franchises share a location and management, site selection, training of the staff, financing, and marketing, record keeping, and production business also arranged.

5. This is a fully integrated and continuous relationship between a franchiser and franchisee. The relationship covers total operations of the franchise including product or service, trademark quality control, strategy, etc. Fast food restaurants such as McDonald’s are an example of such a franchise.

Merits:
The main advantages of the franchise are as follows –
1. Availability of Established Brands: The franchisee acquires the right to use the popular brand name or trademark of the franchiser. Association with an established name provides a ready market. A franchise gives a quick and easy start in business. There are greater chances of success of the franchisee because the products are well known.

2. Standardised Goods and Services: The reputation of the franchiser depends largely on the quality of products and services supplied by the franchisee. The franchiser takes steps to ensure that products and services in all the franchised outlets are uniforms. He provides the raw materials and keeps close control of the quality of goods. The quality of products helps the franchisee to satisfy his customers by offering quality products.

3. Advertising Support: The franchiser carries on advertising. The franchisee gets the benefit of such advertising and the reputation or goodwill of the franchiser. The products are well advertised in various media and are known to the people. It is easier for the franchisee to promote the sale of products.

4. Financial Assistance: Franchiser offers a wide range of financial assistance to the franchisee in the form of short-term credit, lower down payment, flexible repayment terms, etc. Financial assistance is available for plant and equipment, accounts receivable, etc.

5. Managerial Training: Franchisers provide technical and managerial training to franchisees and their staff. Prior to opening a franchise, counseling and training are provided in the professional and profitable operation of the business and in the fields of inventory management, accounting, sales promotion, advertising, etc. Assistance is also available in site selection, marketing research, in addition to ongoing business assistance.

6. Established Business Methods: The franchisee can capitalize on the accumulated knowledge, experience, and skill of the franchiser. He does not have to build a business from scratch. The franchisee buys a business that has proved its success and can, therefore, avoid many of the pitfalls faced by small business owners. The franchiser makes huge investments in the innovation of products and research and development.

7. Economies of Scale: Due to the group or cooperative purchasing,
costs of products are reduced. Mass buying provides economies of scale. The distribution system between franchisor and franchisee in the shortest possible time. Marketing costs are lowered.

8. Uniform Control System: All franchising outlets are subject to the uniform control system. Standardized inventory control enables the franchiser to have more accurate information about the merchandise available and needed. Standardized reporting procedures are also helpful. It enables the franchiser to increases his goodwill and reputation.

9. Higher Success Rate: On average, franchises survive better than other business start-ups. The success rate, of franchises, is higher than that of independently owned businesses, Therefore, franchises are more attractive to middle-aged people who are less willing to take full risk of starting their own business. Potential income can be higher than independent small businesses.

10. Benefits to Franchiser: Franchise enables the franchiser to enter a new business territory at a low cost. It is a relatively quick way to raise cash and expand business operations. Owner-operators (franchises) are highly motivated. Franchises can be used as outlets for goods and services manufactured or supplied by the franchiser. This provides economies of scale in manufacturing and purchases. The franchiser can exercise control over products, services, and processes. The franchiser gets feedback about the product’s popularity from the franchisee.

Limitations:
The franchise system suffers from the following disadvantages –
1. Fees and Royalties: Costs of a franchise include license fees and fees for the initial processing of the application. It is payable when the franchise agreement is signed and is not refundable. Other costs include down payment on equipment, decoration of the outlet, office furniture, publicity on opening, etc. The franchise has to bear travel and living expenses while undergoing training. In addition, He has to pay a royalty on a continuing basis.

2. Lack of Freedom: The franchisee does not have the freedom to run a business like an independent owner. He has to conform to the controls exercised by the franchiser to ensure quality and uniformity of standards of product or service. Quality standards and specifications for all items used in the franchise are established. The freedom of purchasing is also restricted.

3. Limited Product Line: The franchiser controls the products or services sold at the franchisee’s outlet. The franchisee cannot introduce other products except those permitted by the franchiser.

4. Restriction on Sale of Franchise: Sale, transfer, or assignment of ownership interest requires the franchiser’s approval. Even when the sale is approved, the new franchisee is required to conform to the terms and conditions of the franchise.

5. Disadvantages to the Franchiser: The franchiser cannot treat or control the franchisees like his employees. Franchisees tend to become quite vocal and demanding if they feel they are not getting fair treatment or do not see benefits in the franchise network. Extensive communications are necessary and the costs of visiting the franchisees at distant places can be high. The franchiser has to bear the expenses of administration, training, advertising, legal services, supervision, etc.