Negative Impacts of International Trade

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What is the Mercantilism Theory based on?

Acquiring gold

According to Mercantilism Theory, how should a country increase its wealth?

By promoting exports and discouraging imports

What does Mercantilism Theory assume about the wealth in the world?

There is a limited amount of wealth (gold) in the world

What is the goal of a nation according to Mercantilism Theory?

To achieve and maintain a favorable trade balance Signup and view all the answers

What is one disadvantage of the Mercantilism Theory?

Exploitation of workers Signup and view all the answers

In what way was Mercantilism considered as one-way traffic?

It only focused on producing and exporting goods Signup and view all the answers

What is one of the important impacts of globalization on Indian society?

Cross country culture is one of the important impacts of globalization on Indian society. Signup and view all the answers

What is the main factor that contributes maximum to a country's economy becoming part of the international economy?

Economic unification is the main factor that contributes maximum to a country's economy into an international economy. Signup and view all the answers

How has globalization increased employment opportunities in India?

With the opportunity of Special Economic Zones (SEZ), there is an increase in the number of new jobs availability. Signup and view all the answers

What feature of India motivates big companies in the West to outsource employees from India?

Cheap labour is a feature that motivates big companies in the West to outsource employees from India. Signup and view all the answers

How has globalization impacted the compensation levels in India?

After globalization, the level of compensation has increased as compared to domestic companies due to the skill and knowledge a foreign company offers. Signup and view all the answers

What is the impact of globalization on the standard of living in India?

With the outbreak of globalization, the standard of living of an individual in India has increased. Signup and view all the answers

How does international trade encourage subjugation and slavery according to the passage?

International trade often leads to political dependence, which can result in subjugation and slavery, as exemplified by the British rule over India. Signup and view all the answers

What is one negative impact of excessive exports mentioned in the passage?

Excessive exports may exhaust a country's natural resources in a shorter span of time than otherwise. Signup and view all the answers

Give an example of how exports can cause domestic inflation according to the text.

India has been exporting sugar to earn foreign exchange, resulting in soaring sugar prices within the country. Signup and view all the answers

How can international trade endanger a country's internal peace?

It gives an opportunity for foreign agents to settle down in the country, which may ultimately endanger its internal peace. Signup and view all the answers

What negative impact of globalization on India's economy is mentioned?

International trade promotes lopsided development, where only goods with a comparative cost advantage are produced in a country. Signup and view all the answers

According to the passage, how can international trade impact world peace?

International trade breeds rivalries amongst nations due to competition in foreign markets, which may eventually lead to wars and disturb world peace. Signup and view all the answers