Economics: International and National Trade

Countries need to trade to obtain commodities they cannot produce themselves or purchase elsewhere at a lower price.

International trade is the exchange of goods and services among countries across national boundaries, whereas national trade occurs within a country's borders.

The primary limitation of the barter system was the need for a 'double coincidence of wants', where two parties had to have what the other wanted.

<p>Jon Beel Mela is possibly the only fair in India where the barter system is still alive, with people from various tribes and communities exchanging their products.</p> Signup and view all the answers

<p>Trade is mutually beneficial for both parties involved.</p> Signup and view all the answers

<p>The introduction of money overcame the difficulties of the barter system.</p> Signup and view all the answers

<p>Differences in physical make-up, such as geology, relief, soil, and climate.</p> Signup and view all the answers

<p>Densely populated countries have large internal trade but little external trade, as most production is consumed locally.</p> Signup and view all the answers

<p>It determines the nature of traded items, with agricultural countries trading agro products and industrialized nations trading machinery and finished products.</p> Signup and view all the answers

<p>It boosts trade by developing capital-intensive industries, leading to the import of foodstuffs, minerals, and creating markets for finished products.</p> Signup and view all the answers

<p>Improved transportation has enabled the trade of goods over long distances, contributing to spatial expansion.</p> Signup and view all the answers

<p>It determines the mineral resource base and influences the diversity of crops and animals raised.</p> Signup and view all the answers

<p>It determines the type of flora and fauna that can survive in a region, leading to diversity in products traded.</p> Signup and view all the answers

<p>It means the country spends more on imports than it earns from exports, leading to exhaustion of financial reserves.</p> Signup and view all the answers

<p>Bilateral trade is done between two countries, where they agree to trade specified commodities, and may involve agreements to purchase specific items.</p> Signup and view all the answers

<p>It records the volume of goods and services imported and exported, and has implications for a country's financial reserves and economy.</p> Signup and view all the answers

<p>Entrepot Ports</p> Signup and view all the answers

<p>They face each other across a water body</p> Signup and view all the answers

<p>Naval Ports</p> Signup and view all the answers

<p>They gain benefits through increased trade and cooperation</p> Signup and view all the answers

<p>By providing a location for the exchange of goods and services between countries</p> Signup and view all the answers

<p>It is detrimental to the nation's economy</p> Signup and view all the answers

<p>The word 'salary' comes from the Latin word 'Salarium' which means payment by salt. In ancient times, producing salt from seawater was unknown and could only be made from rock salt, which was rare and expensive, making it a valuable commodity for payment.</p> Signup and view all the answers

<p>Some of the rare objects used as money in the olden times were flintstones, obsidian, cowrie shells, tiger's paws, whale's teeth, dogs' teeth, skins, furs, cattle, rice, peppercorns, salt, small tools, copper, silver, and gold.</p> Signup and view all the answers

<p>The Silk Route was an ancient example of long-distance trade connecting Rome to China, and it involved the trade of Chinese silk, Roman wool, precious metals, and other high-value commodities from intermediate points in India, Persia, and Central Asia.</p> Signup and view all the answers

<p>The Industrial Revolution led to an increase in demand for raw materials like grains, meat, and wool, but their monetary value declined in relation to the manufactured goods, with industrialized nations importing primary products as raw materials and exporting the value-added finished products back to non-industrialized nations.</p> Signup and view all the answers

<p>The slave trade resulted in the forced transportation of African natives to the Americas, leading to the separation of family members and the exploitation of their labor. The slave trade was abolished in Denmark in 1792, Great Britain in 1807, and the United States in 1808.</p> Signup and view all the answers

<p>During the World Wars I and II, countries imposed trade taxes and quantitative restrictions, but the post-war period saw the establishment of organizations like the General Agreement for Tariffs and Trade (GATT), which later became the World Trade Organization (WTO), helping to reduce tariff barriers.</p> Signup and view all the answers

<p>The principle of comparative advantage states that countries should specialize in producing goods and services in which they have a lower opportunity cost, leading to mutually beneficial trade between countries.</p> Signup and view all the answers

<p>Specialization in production leads to international trade as countries produce goods and services in which they have a comparative advantage, leading to trade between countries that benefit from each other's specialization.</p> Signup and view all the answers

<p>Well-developed transportation and communication systems are essential for modern international trade, as they facilitate the movement of goods and services across borders and enable countries to participate in global trade.</p> Signup and view all the answers

<p>International trade is closely related to the foreign policy of nations, as trade agreements and relationships with other countries are a key aspect of a country's foreign policy.</p> Signup and view all the answers

<p>To liberalise the world from high customs tariffs and various other types of restrictions</p> Signup and view all the answers

<p>Most Favoured Nation (MFN)</p> Signup and view all the answers

<p>Dumping</p> Signup and view all the answers

<p>Resolving disputes between its member nations</p> Signup and view all the answers

<p>Free trade does not make ordinary people’s lives more prosperous, instead it widens the gulf between rich and poor</p> Signup and view all the answers

<p>52 per cent</p> Signup and view all the answers

<p>Removing trade tariffs within the member nations</p> Signup and view all the answers

<p>Higher level of production and better standard of living</p> Signup and view all the answers

<p>Issues of health, worker’s rights, child labour, and environment are ignored</p> Signup and view all the answers

<p>164 countries</p> Signup and view all the answers

<p>It leads to the overuse of natural resources, depletion of marine life, and pollution, as production and consumption increase without sustainable development practices.</p> Signup and view all the answers

<p>They expand their operations without adhering to sustainable development norms, leading to pollution, environmental degradation, and health concerns, which can have severe implications in the future if not addressed.</p> Signup and view all the answers

<p>The importance of a port is judged by the size of cargo and the number of ships handled, which indicates the level of development of its hinterland.</p> Signup and view all the answers

<p>Ports are classified into industrial ports (handling bulk cargo), commercial ports (handling general cargo and passenger traffic), and comprehensive ports (handling both bulk and general cargo in large volumes).</p> Signup and view all the answers

<p>Inland ports are located away from the sea coast, connected to the sea through a river or canal, while out ports are deep-water ports built away from the actual ports to serve larger ships.</p> Signup and view all the answers

<p>Oil ports are specialized ports that deal with the processing and shipping of oil, and can be further classified into tanker ports and refinery ports.</p> Signup and view all the answers

<p>Ports of call were originally developed as stopping points on main sea routes for refuelling, watering, and provisioning, and later evolved into commercial ports.</p> Signup and view all the answers

<p>International trade can have far-reaching consequences on the environment, health, and well-being of people, including pollution, depletion of natural resources, and exploitation.</p> Signup and view all the answers

<p>The activities of multinational corporations can lead to environmental degradation, pollution, and health concerns, as they prioritize profits over sustainable development and environmental responsibility.</p> Signup and view all the answers

<p>Dependence on international trade can lead to uneven levels of development, exploitation, and commercial rivalry, potentially resulting in conflict and war.</p> Signup and view all the answers