Class 12 Geography – Chapter 9: International Trade
1. What is international trade?
Answer:
International trade is the exchange of goods, services, and capital across countries. It promotes global interdependence, economic growth, and access to resources not available locally.
2. How is international trade different from local trade?
Answer:
International trade involves multiple countries, foreign currencies, legal systems, and transportation barriers, unlike local trade which is confined within national boundaries and regulations.
3. What are the types of international trade?
Answer:
- Bilateral trade: between two countries
- Multilateral trade: involving more than two countries
- Export: goods sent out
- Import: goods brought in
4. What are the benefits of international trade?
Answer:
It allows countries to specialize, improves efficiency, boosts employment, generates revenue, widens markets, and fosters political and cultural cooperation.
5. What are the disadvantages of international trade?
Answer:
It may cause over-dependence, unequal exchange, trade deficits, loss of domestic industries, and economic exploitation by stronger economies.
6. What is a trade balance?
Answer:
It’s the difference between a country’s export and import value.
- Surplus: exports > imports
- Deficit: imports > exports
7. Define free trade.
Answer:
Free trade allows unrestricted exchange of goods and services across borders without tariffs, quotas, or other government-imposed restrictions.
8. What is protectionism?
Answer:
It’s an economic policy of restricting imports using tariffs and quotas to protect domestic industries from foreign competition.
9. What is WTO?
Answer:
The World Trade Organization (WTO) promotes free and fair international trade, resolves disputes, and establishes trade rules among member countries.
10. What is India’s composition of trade?
Answer:
India exports textiles, petroleum products, software, and pharmaceuticals; imports crude oil, electronics, gold, and machinery. Trade is growing with diversified partners.
11. Who are India’s major trading partners?
Answer:
USA, China, UAE, Saudi Arabia, Germany, and Singapore are among India’s key trading partners for both imports and exports.
12. How does transportation affect international trade?
Answer:
Efficient transport systems like ports, shipping, and air cargo reduce cost and time, enhance competitiveness, and expand trade networks globally.
13. What is trade route?
Answer:
It’s a path used for transporting goods between countries. Key global trade routes include Atlantic, Pacific, Suez Canal, and the Panama Canal.
14. What is regional trade?
Answer:
Trade occurring within a specific region, such as SAARC, ASEAN, or EU countries, aiming to boost cooperation and reduce barriers among neighboring nations.
15. What is fair trade?
Answer:
Fair trade ensures producers in developing countries get fair prices, decent working conditions, and sustainable livelihoods—especially in agriculture and handicrafts.
16. Why is trade important for developing countries?
Answer:
It brings foreign exchange, industrial growth, employment, and global integration. Export-oriented policies help improve infrastructure and living standards.
17. How do trade blocs affect international trade?
Answer:
Trade blocs like EU or NAFTA encourage free trade among members but may restrict non-members, creating regional cooperation but global imbalance.
18. What is e-commerce’s role in international trade?
Answer:
E-commerce enables global buying/selling through digital platforms. It reduces barriers, expands market access, and supports small businesses in international trade.
19. What are non-tariff barriers?
Answer:
They are trade restrictions like import licensing, standards, and regulations that act as obstacles without using direct taxes or tariffs.
20. How can international trade be made sustainable?
Answer:
By ensuring environmental standards, ethical sourcing, reducing carbon footprint in logistics, and promoting equitable benefits across all participating nations.