All questions of International Trade for Humanities/Arts Exam

The trade between two countries is called external trade.

External trade, also known as international trade, refers to the exchange of goods, services, and capital between two or more countries. It involves the buying and selling of goods and services across national borders, and it plays a significant role in the global economy. External trade allows countries to specialize in the production of certain goods or services and trade them with other nations, thereby benefiting both parties involved.

Key Points:
- External trade involves the import and export of goods and services between countries.
- It is an essential component of the global economy and contributes to economic growth and development.
- Countries engage in external trade to take advantage of comparative advantage, which refers to the ability to produce goods or services at a lower opportunity cost.
- The trade between countries can be bilateral, involving two nations, or multilateral, involving multiple countries.
- External trade can take various forms, such as the exchange of raw materials, finished products, services, and investment capital.
- International trade is facilitated by various factors, including trade agreements, tariffs, customs regulations, transportation infrastructure, and communication networks.
- It is regulated by international organizations such as the World Trade Organization (WTO), which promotes free trade and resolves trade disputes.
- External trade can have both positive and negative impacts on countries. It can lead to economic growth, job creation, and improved living standards, but it can also create economic imbalances and disparities.
- Countries engage in external trade to access goods and services that are not available domestically, to obtain resources or commodities at a lower cost, and to expand their markets and increase their competitiveness.

In conclusion, external trade, or international trade, is the exchange of goods, services, and capital between countries. It is a vital component of the global economy and allows countries to specialize in the production of certain goods or services while benefiting from the trade with other nations.

Mormugao Port is located in the town of Mormugao, Goa, India.

Overview of India's Foreign Trade
India's foreign trade is a crucial component of its economy, involving the exchange of goods and services with other countries. The transportation modes play a significant role in facilitating this trade.
Modes of Transportation
- Sea Trade:
- The majority of India's international trade is conducted via sea routes.
- Major ports like Mumbai, Chennai, and Kolkata handle substantial cargo volumes.
- Maritime transport is cost-effective for bulk goods.
- Air Trade:
- Air transport is essential for high-value and time-sensitive goods.
- It complements sea trade by facilitating quick deliveries, particularly for electronics, pharmaceuticals, and perishables.
- Major airports like Delhi and Mumbai serve as key international trade hubs.
Reasons for the Correct Answer (C: Sea and Air)
- Cost-Effectiveness:
- Sea transport is generally cheaper for large volumes, making it the preferred choice for bulk commodities like coal and iron ore.
- Speed and Efficiency:
- Air transport provides the speed necessary for goods that require quick turnover, making it invaluable for certain sectors.
- Diverse Cargo Types:
- The combination of both sea and air allows India to export a wide range of products efficiently, from agricultural goods to high-tech items.
Conclusion
In summary, while sea transport forms the backbone of most of India's foreign trade due to its cost efficiency, air transport plays a critical role in ensuring timely delivery of high-value goods. Together, they make the most effective transportation strategy for India's international trade landscape.

Understanding Landlocked Harbours
A landlocked harbour is a port that is situated inland, typically surrounded by land on most sides, which provides natural protection from ocean waves and storms. These harbours are often connected to the sea via rivers or channels.
Analysis of Options
- Vishakhapatnam
- Located on the east coast of India along the Bay of Bengal.
- It is not landlocked as it has direct access to the sea.
- Haldia
- Situated near the mouth of the Hooghly River in West Bengal.
- Although it has river access, it is not entirely landlocked as it connects to the Bay of Bengal.
- Ennore
- Located near Chennai, it has direct access to the Bay of Bengal.
- Therefore, it is not categorized as a landlocked harbour.
- Mumbai
- A major port city on the west coast of India, with a natural harbour opening to the Arabian Sea.
- It is not landlocked; it has extensive sea access.
Conclusion
None of the options provided are technically landlocked harbours. However, the question's answer indicating Vishakhapatnam as a landlocked harbour is likely incorrect based on the definitions provided. Both Haldia and Ennore also have connections to the sea, signifying they are not landlocked.
A landlocked harbour typically would be one that is more isolated from direct sea access, which does not apply to any of the listed options. It is essential to verify definitions and geographical contexts when identifying such locations.

Overview of New Mangalore Port
New Mangalore Port, located on the western coast of India in Karnataka, is one of the major ports in the country. It plays a crucial role in the export and import of goods, facilitating trade both nationally and internationally.
Major Export: Iron Ore
The primary export from New Mangalore Port is iron ore. This is significant for several reasons:

• Resource Abundance: India is rich in iron ore reserves, particularly in the states of Karnataka, Odisha, and Chhattisgarh. New Mangalore serves as a key transit point for this valuable mineral.
• Global Demand: The demand for iron ore is driven by the steel industry, which is a fundamental component of construction and manufacturing worldwide. Countries like China and Japan are major importers of iron ore from India.
• Infrastructure: New Mangalore Port has well-developed infrastructure, including loading facilities and storage, making it efficient for shipping iron ore. The port is capable of handling large bulk carriers, which is essential for this type of cargo.
• Economic Impact: The export of iron ore contributes significantly to the local and national economy. It provides employment opportunities and supports various sectors, including transportation and logistics.

Conclusion
In summary, New Mangalore Port serves as a crucial hub for iron ore exports due to its strategic location, abundant resources, and robust infrastructure. The significance of iron ore in global markets underlines the port's role in facilitating trade and economic growth in India.

Introduction:

India is a major player in the global export market, and its diverse range of products caters to the needs of various countries. The country is known for its manufacturing capabilities and has a strong presence in the global market for textiles and garments. However, not all items exported by India are equally important in terms of their contribution to the country's economy. One such item is machinery.

Explanation:

Manufactured goods:
Manufactured goods are one of the most significant items that India exports to other countries. These include a wide range of products such as automobiles, electronics, pharmaceuticals, chemicals, and machinery. The manufacturing sector in India has experienced significant growth in recent years, and the country has established itself as a reliable source of quality manufactured products. These goods contribute significantly to India's export earnings and play a crucial role in boosting the country's economy.

Readymade garments:
India is one of the largest exporters of readymade garments in the world. The country's textile industry is known for its diverse range of products, including traditional clothing, western wear, and high-fashion garments. Indian textiles are in high demand globally due to their quality, craftsmanship, and competitive pricing. The readymade garment sector provides employment to millions of people in India and contributes significantly to the country's export earnings.

Cotton yarn:
Cotton yarn is another important item that India exports to other countries. India is one of the largest producers of cotton in the world, and its yarn is highly valued for its quality and versatility. Indian cotton yarn is used in various industries such as textiles, garments, and home furnishings. The export of cotton yarn helps generate revenue for Indian farmers and contributes to the growth of the textile industry.

Machinery:
Contrary to the other options mentioned, machinery is not one of the most important items that India exports to other countries. While India does export machinery, it does not hold a significant market share compared to other countries like China, Germany, and the United States. These countries are known for their advanced technology and manufacturing capabilities in the machinery sector. India's exports in machinery primarily consist of low-value and low-tech products, limiting its competitiveness in the global market.

Conclusion:
In summary, while India exports a wide range of goods to other countries, machinery is not one of the most important items in terms of its contribution to the country's export earnings. India's strengths lie in the manufacturing sector, especially in the production of manufactured goods, readymade garments, and cotton yarn. However, it is worth noting that the government has been taking initiatives to promote the growth of the machinery sector and increase its export potential in the future.

Reason for the decline of import of foodgrains:

- Green revolution: The main reason for the decline in the import of foodgrains was the Green Revolution. The Green Revolution refers to the period in the 1960s and 1970s when new agricultural technologies were introduced, leading to a significant increase in crop productivity. These technologies included the use of high-yielding varieties of seeds, irrigation, and fertilizers. As a result of the Green Revolution, countries were able to increase their domestic food production and reduce their dependence on imported foodgrains.

- Increased domestic production: With the adoption of new agricultural technologies, countries were able to produce more foodgrains domestically. The increased productivity allowed countries to meet their food requirements without having to rely on imports. This led to a decline in the need for importing foodgrains from other countries.

- Self-sufficiency: The Green Revolution helped many countries achieve self-sufficiency in food production. By producing enough foodgrains to meet their own needs, countries were able to reduce their reliance on imported foodgrains. This shift towards self-sufficiency further contributed to the decline in the import of foodgrains.

- Impact on trade balance: The decline in the import of foodgrains had a positive impact on the trade balance of countries. By reducing the need for importing foodgrains, countries were able to save foreign exchange and improve their trade balance. This allowed countries to allocate resources towards other sectors of the economy and promote overall economic growth.

In conclusion, the Green Revolution played a crucial role in the decline of import of foodgrains by increasing domestic food production, achieving self-sufficiency, and improving the trade balance of countries.

There are several possible interpretations of your question, so I will provide information on different elements of India:

1. Geographical Element: India is located in South Asia and is bordered by the countries of Pakistan, China, Nepal, Bhutan, Bangladesh, and Myanmar. It is surrounded by the Indian Ocean on three sides.

2. Cultural Element: India is known for its rich and diverse culture, which includes various languages, religions, traditions, art forms, and cuisines. It has a long history of civilization and has been the birthplace of major religions like Hinduism, Buddhism, Jainism, and Sikhism.

3. Political Element: India is a democratic republic with a federal structure. It has a President as the Head of State and a Prime Minister as the Head of Government. The country is divided into 28 states and 8 Union territories.

4. Economic Element: India has one of the world's fastest-growing major economies and is classified as a newly industrialized country. It has a diverse economy, with agriculture, manufacturing, and services sectors contributing to its GDP. It is also one of the largest exporters of information technology services.

5. Natural Element: India is known for its diverse natural beauty, including the Himalayan mountain range, the Thar Desert, the Western Ghats, and the Sundarbans mangrove forest. It is also home to several national parks and wildlife sanctuaries, preserving a wide range of flora and fauna.

Please let me know if you were referring to a specific element, and I would be happy to provide more information.

The correct answer is option B) X 540,818 crore.

Explanation:
The adverse balance of trade refers to a situation where a country's imports exceed its exports, resulting in a deficit in the trade balance. In other words, it represents a negative value indicating that the country is importing more goods and services than it is exporting.

In 2011, India experienced an adverse balance of trade, indicating a trade deficit. The value of this deficit in 2011 was X 540,818 crore.

To understand this further, let's break down the answer and explain it in detail:

1. Definition of adverse balance of trade:
- Adverse balance of trade is a situation where a country's imports exceed its exports.
- It represents a trade deficit, indicating that the country is buying more goods and services from other countries than it is selling to them.

2. The value of adverse balance of trade in India in 2011:
- According to the given options, the correct answer is option B) X 540,818 crore.
- This means that India's imports exceeded its exports by X 540,818 crore in 2011.
- The negative value indicates a trade deficit, highlighting that India was importing more than it was exporting during that period.

It is important to note that the given options are in terms of crore, which is a unit used in the Indian numbering system equivalent to ten million. Therefore, the value X 540,818 crore represents a significant trade deficit for India in 2011.

Overall, the adverse balance of trade in India in 2011 was X 540,818 crore, indicating a trade deficit where imports exceeded exports.

India's Share in World Trade

India's share in world trade is approximately 1%.

Reasons for India's Low Share in World Trade
- Lack of Infrastructure: India faces challenges in terms of inadequate infrastructure which hinders its ability to compete globally.
- High Logistics Costs: The high logistics costs in India make its exports less competitive in the global market.
- Complex Trade Procedures: Cumbersome trade procedures and regulations make it difficult for Indian businesses to engage in international trade.
- Limited Export Diversification: India's export basket is dominated by a few sectors, limiting its ability to tap into new markets.
- Currency Fluctuations: Fluctuations in the value of the Indian rupee can impact the competitiveness of Indian exports.

Efforts to Increase India's Share in World Trade
- Trade Agreements: India has been actively engaging in trade agreements with various countries and blocs to enhance its market access.
- Export Promotion Schemes: The government has introduced various export promotion schemes to support Indian exporters.
- Improving Infrastructure: Efforts are being made to improve infrastructure such as ports, roads, and railways to facilitate trade.
- Simplifying Trade Procedures: Initiatives like the Single Window Interface for Facilitating Trade (SWIFT) aim to simplify trade procedures and reduce red tape.
- Enhancing Export Diversification: There is a push to diversify India's export basket by promoting new sectors and products in the global market.

By addressing these challenges and implementing strategic measures, India aims to increase its share in world trade in the coming years.

Trade between two countries is termed as International trade.

**The Total Number of Major Ports in India:**

India has a vast coastline of approximately 7,500 kilometers along the Arabian Sea and the Bay of Bengal. This extensive coastline has led to the development of numerous ports along its shores. These ports play a crucial role in India's maritime trade and transportation, both domestically and internationally.

The major ports in India are governed and managed by the central government through the Ministry of Shipping. These ports are responsible for handling large volumes of cargo, facilitating smooth trade operations, and contributing significantly to the country's economic growth.

The correct answer to the question is option 'C', which states that there are 12 major ports in India. Let's explore these ports in detail:

1. **Kandla Port**: Located in Gujarat, Kandla Port is one of the largest ports in India and handles various types of cargo, including petroleum, chemicals, iron ore, and grains.

2. **Mumbai Port**: Also known as the Port of Bombay, it is situated in Maharashtra and is the largest port on the western coast of India. It handles a wide range of cargo and is well-connected to the hinterland.

3. **Jawaharlal Nehru Port**: Located in Navi Mumbai, Maharashtra, this port is the largest container port in India. It primarily handles containerized cargo and plays a crucial role in international trade.

4. **Mormugao Port**: Situated in Goa, Mormugao Port is a major iron ore exporting port and handles various other commodities like coal, petroleum, and fertilizers.

5. **New Mangalore Port**: Located in Karnataka, New Mangalore Port caters to the transportation needs of the region and handles cargo like petroleum products, edible oils, and chemicals.

6. **Cochin Port**: Situated in Kerala, Cochin Port is an all-weather natural harbor and handles a diverse range of cargo, including containerized cargo, petroleum products, and liquid chemicals.

7. **Chennai Port**: Located in Tamil Nadu, Chennai Port is one of the oldest ports in India and handles various types of cargo, including automobiles, general cargo, and containers.

8. **V.O. Chidambaranar Port**: Formerly known as Tuticorin Port, it is situated in Tamil Nadu and primarily handles coal, salt, and other bulk cargo.

9. **Visakhapatnam Port**: Located in Andhra Pradesh, Visakhapatnam Port is one of the busiest ports on the eastern coast of India. It handles a wide range of cargo, including iron ore, coal, and petroleum products.

10. **Paradip Port**: Situated in Odisha, Paradip Port is a major port on the east coast of India and handles various types of cargo like iron ore, coal, fertilizers, and petroleum products.

11. **Port Blair Port**: Located in the Andaman and Nicobar Islands, Port Blair Port plays a crucial role in connecting these islands with the mainland. It handles cargo like food grains, construction materials, and petroleum products.

12. **Ennore Port**: Situated in Tamil Nadu, Ennore Port primarily handles coal, iron ore, and petroleum products. It is one of the youngest major ports in India.

These 12 major ports together contribute significantly to India's maritime trade, handling a substantial amount of cargo and facilitating smooth trade operations. They play a crucial role in the country's economic development and international trade relations.

Jawaharlal Nehru Port is the new port developed in India to relieve the burden on the Mumbai Port. It is also known as Nhava Sheva Port and is located in Navi Mumbai, Maharashtra. This port has been developed to cater to the increasing trade demands and to handle larger vessels that cannot be accommodated by the Mumbai Port.

Jawaharlal Nehru Port was established on May 26, 1989, and is named after the first Prime Minister of India, Jawaharlal Nehru. It is the largest container port in India and handles a significant portion of the country's containerized cargo. The development of this port was a crucial step in the expansion and modernization of India's port infrastructure.

Below are the key points regarding the development and significance of Jawaharlal Nehru Port:

- Relieving Mumbai Port: The Mumbai Port, located in South Mumbai, was facing capacity constraints due to its location and limited space for expansion. To address this issue, Jawaharlal Nehru Port was developed as an alternative port to handle the increasing volume of trade and larger vessels.

- Location: Jawaharlal Nehru Port is situated across the eastern shore of the Mumbai Harbour, covering an area of about 48 square kilometers. Its strategic location in Navi Mumbai provides easy access to the hinterland and connectivity to major highways and rail networks.

- Infrastructure: The port has state-of-the-art infrastructure with modern container handling facilities, deep draft berths, and advanced cargo handling equipment. It has multiple terminals for container handling, including the Jawaharlal Nehru Port Container Terminal (JNPCT), Nhava Sheva International Container Terminal (NSICT), and Gateway Terminals India (GTI).

- Trade Facilitation: The development of Jawaharlal Nehru Port has significantly contributed to facilitating international trade in India. It has improved efficiency in cargo handling, reduced turnaround time for vessels, and enhanced connectivity with major global shipping routes. The port has also implemented various digital initiatives, such as electronic data interchange and online payment systems, to streamline trade processes.

- Economic Impact: The port has played a crucial role in boosting the economy of the region and the country as a whole. It has generated employment opportunities, attracted investments in logistics and warehousing sectors, and contributed to the growth of industries dependent on international trade.

Overall, the development of Jawaharlal Nehru Port has been instrumental in relieving the burden on the Mumbai Port and strengthening India's maritime infrastructure. It has positioned India as a major player in global trade and contributed to the country's economic growth.