CHAPTER 21 : International Trade NCERT SOLUTION CLASS 12TH GEOGRAPHY | EDUGROWN NOTES

Short Answer Type Questions:

Q1.Why is international trade necessary?
Answer:
International trade is beneficial as no country is self sufficient. It bridges the gap between surplus regions and deficit regions through export and imports. Countries need to trade to obtain commodities, they cannot produce themselves or they can purchase elsewhere at a lower price. It helps countries in maintaining the specialisation in the production of goods and services. It increases international cooperation and understanding. In early times it played significant role in the cultural diffusion.

Q2.Explain the causes behind increase in foreign trade in India.
Answer:
There are numerous reasons for this sharp increase in foreign trade:

• The momentum picked up by the manufacturing sectors.
• The liberal policies of the government.
• The diversification of markets.

Q3.What factors are responsible for change in nature of international trade?
Answer:
Many changes have taken place in foreign trade of India over time. There has been an increase in the total volume of import & export, but the value of import remained higher. The share of agriculture and allied products has declined while that of petroleum has increased. The increase in deficit is attributed to the price rise of crude petroleum which forms a major component of India’s import list.

Q4.Name the goods of imports from 2009 to 2011 whose quantity kept on increasing.
Answer:
Import of Petroleum products & capital goods maintained steady rise in imports due to rising industrialisation and better standard of living. Non-electrical machinery, transport equipment, manufacturers of metals and machine tools were the main items of capital goods. Import of food and allied products declined with a fall in imports of edible oils. Other major items of India’s import include pearls and semi precious stones, gold and silver, ferrous ores and metal scrap, non-ferrous metals, electronic goods, etc.

Q5.What steps have been taken by India to • increase its share in international trade?
Answer:
India aims to double its share in the international trade within the next five years. India has started adopting suitable measures such as import liberalization, reduction in import duties, de-licensing and change from process to product patents for attaining these goals.

Q6.What steps have been taken for modernization of Indian ports?
Answer:
Today Indian ports are handling large volumes of domestic as well as overseas trade. Most of the ports are equipped with modern infrastructure. Previously the development and modernization was the responsibility of the government agencies, but considering the increase in function and need to bring these ports at par with the international ports, private entrepreneurs have been invited for the modernization of ports in India.

Q7.Explain the hinterland of Kolkata port.
Answer:
Hinterland is the influence area which is closely connected to the port with roads and railways. The products of this area are sent to the port for export and imported material is distributed here for sale and consumption.

Kolkata port is also confronted with the problem of silt accumulation in the Hugli river which provides a link to the sea. Its hinterland covers U.P., Bihar, Jharkhand, West Bengal, Sikkim and the north-eastern states. Apart from this, it also extends ports facilities to our neighbouring land-locked countries such as Nepal and Bhutan.

Q8.Explain the features of Kandla Port.
Answer:
Features of Kandla Port:

• Objective: Kandla Port situated at the head of Gulf of Kuchchh has been developed as a major port to cater to the needs of western and north western parts of the country and also to reduce the pressure at Mumbai port.
• Goods Handled: The port is specially designed to receive large quantities of petroleum and petroleum products and fertiliser. The offshore terminal at Vadinar has been developed to reduce the pressure at Kandla port.
• Hinterland: Demarcation of the boundary of the hinterland would be difficult as it is not fixed over space. In most of the cases, hinterland of one port may overlap with that of the other. Covers the western 8s north western states.

Long Answer Type Questions:

Q1.India’s international trade has undergone a sea-change in recent years. Discuss.
Answer:
India has trade relations with all the major trading blocks and all geographical regions of the world. Among the commodities of export, whose share is significant over the last few years till 2010¬11, are agriculture and allied products (10 per cent), ores and minerals (4 per cent), gems and jewellery, chemical and allied products, manufactured goods (12 per cent) and petroleum products (17 per cent). The commodities imported to India include petroleum & coal petroleum products (31 per cent), pearls, precious stones (10 per cent), inorganic chemicals (5.2 per cent), machinery (12.56 per cent). Fertilisers cereals, edible oils and newsprint on other imports. International trade has undergone a sea change in the last fifteen years. Exchange of commodities and goods have been superseded by the exchange of information and knowledge. India has emerged as a software giant at the international level. It is earning large foreign exchange through the export of information technology. .

Q2.Describe the changes in composition of India’s exports.
Answer:.
Composition of export of India:

• The percentage share of the agriculture and allied products have declined. There is a decline in the exports of traditional items such as coffee, spices, tea, pulses, etc.
• The share of petroleum and crude products have increased due to rise in petroleum prices and increase in India’s refining capacity.
• The share of ore & minerals and have largely remained constant over the years from 1997- 98 to 2003-04.
• Manufacturing goods are the largest exporting commodities in the year 2003¬04 (75.96%). The percentage share of other commodities has increased due to an increase in fruits, marine products and sugar.
• Engineering goods are the largest commodities on the export list. Crude and petroleum products also occupy a significant place in the list.
• Textile sector could not achieve much inspite of liberal measures taken by government due to competition from China and other Asian countries.

Q3.Describe the changes in composition of India’s imports.
Answer:
Composition of India’s imports:

• During 1950-60s the major items of imports were foodgrain because India at that time faced food crisis.
• After 1970s import of foodgrains stop due to Green Revolution.
• Foodgrains were replaced by fertilisers and petroleum.
• Petroleum is the largest imported commodity because it is used as a fuel as well as industrial raw material.
• The capital goods like non-electrical machinery, transport equipment, machines and tools have increased on the import list.
• Special steel alloy, edible oils are also imported.
• The other major items of import include pulse, precious gold and silver, metal ores, scraps, electronic goods, etc.

Q4.What are the advantages of sea port? Why are they termed as gateways of International trade?
Answer:

• India is surrounded by sea from three sides and is bestowed with a long coastline.
• Water provides a smooth surface for very cheap transport provided there is no turbulence.
• India has a long traditional of sea-faring and developed many ports with place name suffixed with pattan which mean port. Since waterways is the cheapest means of transport for heavy and bulky goods and it is more favoured for international trading.
• India’s west coast has more seaports than its east coast.
• Availability of indented coastline.
• Early arrivals of British to promote their trade.
• British encouragement to establish and promote ports along the west coast to strengthen connectivity to Europe.
• Opening of suez canal also promotes an encouraged seaports along the west coast.

Q5.Write the differences between Major ports and Minor ports.
Answer:

Major Ports	Minor Ports
(i) There are 12 major ports in India.	(i) There are 226 minor ports in India.
(ii) Central government makes the policy and plays regulatory functions.	(ii) State government makes the policy and functions.
(iii) It regulates foreign trade at international level.	(iii) It manages trade at national or inter-state level.
(iv) It handles huge traffic of metric tonnes per year.	(iv) It handles comparatively lesser traffic of metric tonnes per year.