Chapter 9 - Trade
Q 1. Classify the trade taking place between following regions :
(A) Maharashtra and Punjab
Ans: Internal trade
(B) India and Japan
Ans: International trade
(C) Lasalgaon and Pune
Ans: Internal trade
(D) China and Canada
Ans: International trade
(E) India and European Union
Ans: International trade
Q 2. Write the correct word – Import or Export – for the following :
(A) India buys crude oil from the Middle-East Asian countries.
Ans: Import
(B) Wheat is sent to Asian countries from Canada.
Ans: Export
(C) Japan sends machine parts to APEC countries.
Ans: Export
Q 3. Correct and rewrite the wrong statements :
(A) India is a self-sufficient country.
Ans: India is not a self-sufficient country as it depends on other countries for crude oil, machinery, etc.
(B) The place where there is excess production does not have demand for those products.
Ans: The place where there is excess production more creates ‘supply’ for those products.
(C) International trade processes are easier than local trade.
Ans: International trade processes are relatively more difficult than local trade.
(D) SAARC works towards economic development and enhancing the social and cultural harmony of the South-East Asian countries.
Ans: SAARC works towards increasing social welfare, raising the living standard, and increasing regional cooperation among member states.
Q 4. Identify and write the type of trade:
(A) Srushti brought sugar from the grocery shop.
Ans: Retail Trade.
(B) The traders from Surat bought cotton from the farmers of Maharashtra.
Ans: Wholesale Trade.
(C) Sameer has exported pomegranates from his farms to Australia.
Ans: International Trade.
(D) Sadabhau bought 10 sacks of wheat and 5 sacks of rice from Market Yard for selling in his own shop.
Ans: Wholesale Trade.
Q 5. Write answers in short:
(A) Create a flowchart showing the types of trade.
Ans: Trade refers to buying and selling for fulfilling each other’s needs.
Trade is divided into two categories:
(i) On the basis of the quantity of goods.
(ii) On the basis of the extent of the trade region.
(B) Explain the difference in types of balances of trade.
Ans: The difference between the import and export values of a country in a specific period is called balance of trade. Following are the types of balance of trade:
(i) Unfavourable Balance of Trade:
When the value of imports is more than the value of exports, it is called ‘unfavourable balance of trade.’
(ii) Favourable Balance of Trade:
When the value of exports is more than the value of imports, it is called ‘Favourable Balance of Trade.’
(iii) Balanced Balance of Trade:
When the value of exports and imports is almost the same, it is called ‘Balanced Balance of Trade.’
(C) State the objectives of WTO.
Ans: WTO stands for World Trade Organisation. The main objectives of WTO are:
(i) To provide a platform for negotiations in international trade.
(ii) To handle the differences related to trade.
(iii) To monitor the trade policies of member states.
(iv) To provide technological assistance and training to developing countries.
(D) What is the difference between OPEC and APEC in terms of their functions?
Ans:
| OPEC | APEC |
|---|---|
(i) OPEC stands for Organisation of Petroleum Exporting Countries. | (i) APEC stands for Asia-Pacific Economic Cooperation (APEC). |
(ii) OPEC is the organisation of oil-producing and exporting countries. | (ii) APEC is the regional organisation of the countries in the Asia Pacific region. |
(iii) It keeps control over the international trade of crude oil. | (iii) It promotes free trade and economic cooperation among the member countries. |
(iv) It keeps control on the rates of crude oil production among member states. | (iv) It promotes regional and technical cooperation among members. |
(E) Write the functions of the important trade organisations in Asia.
Ans: Important trade organisations in Asia are:
(i) Association of South East Asian Nations (ASEAN)
(a) To expand social and cultural harmony along with economic growth in South East Asia.
(b) To promote regional peace.
(c) To promote tax waivers for trade growth in member states.
(ii) Asia Pacific Economic Co-operation (APEC)
(a) To promote free trade and economic co-operation in the Asia-Pacific Ocean region.
(b) To promote regional and technical co-operation among members.
(F) What is the importance of marketing from a farmers ‘point of view’?
Ans:
(i) In the traditional marketing system, the farmers used to sell their products in the local market but could not fetch a good price.
(ii) This is because the fruits and vegetables are perishable, and also because the quality, grading, and presentation matter, which the farmers’ commodities lacked, and so they used to incur losses.
(iii) However, modern farmers have acquired skills in marketing. They are aware of the trends in the market.
(iv) They produce food grains and fruits as per international standards.
(v) They also grade and package their products. The presentation of any product has become indispensable now.
(vi) They advertise their product and keep it on hand for sale, along with samples, in the mall.
(vii) These commercial-minded farmers contact supermarkets and exporters through the internet.
(viii) As a result, their products are sold at a higher price in the malls. They also fetch a good price from exports.
(ix) Thus, marketing is as important as the cultivation of crops. By following modern marketing techniques, the income of the farmers can increase, which can improve their standard of living.
Q 6. In the following table, export-import of some countries in the year 2014-15 is given in million U.S. dollars. Make a compound bar graph of the given statistical information. Read the bar diagram carefully and comment upon the balance of payments of the respective countries.
Ans:
(i) China has a balance of trade.
(ii) India, the USA, and Brazil have an unfavourable trade balance.
(iii) The volume of international trade between China and the USA is at its maximum.
(iv) International trade between India and Brazil is insignificant.
(v) International trade is dominated by China and the USA.