Worksheet Solutions: International Trade | Geography Class 12 - Humanities/Arts PDF Download

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Q1: India's export of traditional items like coffee, spices, tea, and pulses decreased due to ____________.
Ans: Intense global competition.
Intense competition in the global market affected the demand and profitability of India's traditional exports, leading to a decline.

Q2: __________ accounted for 68% of India's total export value in 2010-11.
Ans: Manufacturing sector.
The manufacturing sector, comprising various industries, was the dominant contributor to India's export revenue during that period.

Q3: The UAE replaced ____________ as India's largest trading partner in 2010-11.
Ans: USA.
The UAE emerged as India's top trading partner, surpassing the long-standing partnership with the USA in the specified year.

Q4: Major ports handle approximately ____________ of India's oceanic traffic.
Ans: 71%.
The major ports in India efficiently manage the majority of the country's maritime trade, handling 71% of the oceanic traffic.

Q5: Kochchi port is situated at the head of ____________.
Ans: Gulf of Kuchchh.
Kochchi port is strategically located at the head of the Gulf of Kuchchh, enhancing its significance in international trade.

Q6: __________ is the biggest container port in India.
Ans: Jawaharlal Nehru Port.
Jawaharlal Nehru Port holds the distinction of being India's largest container port, facilitating extensive cargo handling and trade activities.

Q7: India's coastline is open to the sea on ____________ sides.
Ans: Three.
India is bordered by the sea on three sides, providing extensive coastlines crucial for maritime trade and connectivity.

Q8: India lost ____________ ports to Pakistan and Bangladesh after gaining independence in 1947.
Ans: Karachi and Chittagong.
After gaining independence in 1947, India lost control over critical ports like Karachi and Chittagong, which became part of Pakistan and Bangladesh, respectively.

Q9: The import of capital goods like non-electrical machinery and transport equipment has steadily increased due to growing demand in ____________ sectors.
Ans: Export-oriented industrial and domestic.
Increasing demand in both export-oriented industries and domestic sectors drove the steady rise in imports of capital goods like machinery and transport equipment.

Q10: The shift in trading partners helped India to weather the ____________.
Ans: Global economic crisis.
Diversifying trading partners allowed India to navigate the challenges posed by the global economic crisis more effectively, ensuring stability in international trade.

Assertion and Reason Based

Q1: Assertion: The decrease in India's export of traditional items is solely due to intense global competition.
Reason: Higher petroleum prices have led to a shift in India's international trade composition.
(a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion.
(c) Assertion is true, but Reason is false.
(d) Assertion is false, but Reason is true.
Ans: (b)
While both the Assertion and Reason are true, they are not directly related. The decrease in India's export of traditional items can be attributed to intense global competition, which affected the market demand for these products. The shift in India's trade composition towards petroleum and related products is a separate phenomenon primarily driven by higher petroleum prices and increased refining capacity. These two events are distinct and not causally linked.

Q2: Assertion: Mumbai port is the biggest port of India.
Reason: Mumbai port has the highest number of berths.
(a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion.
(c) Assertion is true, but Reason is false.
(d) Assertion is false, but Reason is true.
Ans: (c)
The Assertion is true; Mumbai port is indeed the biggest port in India. However, the Reason is false. The size of a port is not determined solely by the number of berths it has. Factors such as cargo handling capacity, total area, and the volume of goods handled contribute to a port's size. While the number of berths is a crucial aspect, it is not the sole determinant of a port's status as the biggest.

Q3: Assertion: Haldia Port handles bulk cargo like iron-ore and coal.
Reason: Haldia Port was constructed upstream from Kolkata port.
(a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion.
(c) Assertion is true, but Reason is false.
(d) Assertion is false, but Reason is true.
Ans: (a)
Both the Assertion and Reason are true. Haldia Port does handle bulk cargo like iron-ore and coal, and it was indeed constructed downstream from Kolkata port to reduce congestion and facilitate the handling of such cargo. The Reason provides a correct explanation for the Assertion.

Q4: Assertion: Chennai Port is unsuitable for large ships due to its shallow waters.
Reason: Chennai Port is one of the oldest ports on the eastern coast.
(a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion.
(c) Assertion is true, but Reason is false.
(d) Assertion is false, but Reason is true.
Ans: (a)
Both the Assertion and Reason are true. Chennai Port's shallow waters make it unsuitable for large ships, limiting the types of vessels that can dock there. The Reason, stating that it is one of the oldest ports on the eastern coast, explains why it may have shallow waters. Older ports might not have been designed to accommodate larger modern vessels, contributing to this limitation.

Q5: Assertion: India's shift in trading partners helped in overcoming the energy crisis of 1973.
Reason: India started importing petroleum products primarily from the UAE.
(a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion.
(c) Assertion is true, but Reason is false.
(d) Assertion is false, but Reason is true.
Ans: (c)
The Assertion is true; India's shift in trading partners did indeed help in overcoming the energy crisis of 1973 by diversifying its sources of energy imports. However, the Reason is false. While India did import petroleum products from the UAE, it was not the sole or primary source. India diversified its sources globally, not just from the UAE, to mitigate the impact of the energy crisis.

Very Short Answer Type Questions

Q1: What has driven the shift in India's international trade composition?
Ans: Economic liberalization and globalization.

Q2: Name two traditional items whose export decreased due to global competition.
Ans: Handicrafts and textiles.

Q3: Which sector accounted for 68% of India's total export value in 2010-11?
Ans: Services sector.

Q4: What are the main reasons for the increase in the import of capital goods?
Ans: To modernize industries and improve productivity.

Q5: Which country replaced the USA as India's largest trading partner in 2010-11?
Ans: United Arab Emirates (UAE).

Q6: What is the main hinterland of New Mongalore Port?
Ans: Karnataka.

Q7: Why was Haldia Port constructed downstream from Kolkata?
Ans: To handle large volumes of cargo and reduce congestion in Kolkata.

Q8: What are the advantages of air transportation for international trade?
Ans: Speed, efficiency, and global connectivity.

Q9: Name one significant item of India's import mentioned in the text.
Ans: Crude oil.

Q10: What measures has India implemented to increase its share in international trade?
Ans: Economic reforms, export promotion schemes, and liberalization of trade policies.

Short Answer Type Questions

Q1: Explain the factors contributing to the decrease in the export of traditional items from India.
Ans: Several factors have contributed to the decrease in the export of traditional items from India. One factor is the changing global demand patterns, as consumers are now seeking more modern and innovative products. Additionally, increased competition from other countries, particularly in the textile and handicraft industries, has led to a decline in India's traditional exports. Furthermore, the lack of technological advancements and modernization in traditional industries has made it difficult for Indian exporters to meet international quality standards. Lastly, the appreciation of the Indian rupee has made Indian products more expensive in the global market, further impacting the export of traditional items.

Q2: Describe the role of major ports in India's domestic and international trade.
Ans: Major ports in India play a crucial role in facilitating both domestic and international trade. These ports serve as important gateways for the import and export of goods. They handle a significant portion of India's total trade volume and contribute to the country's economic growth. Major ports provide essential infrastructure, such as container terminals, warehouses, and transportation facilities, to support trade activities. They also offer services like cargo handling, customs clearance, and storage facilities, ensuring the smooth movement of goods. Moreover, these ports serve as important hubs for transshipment, connecting India to various global markets. Overall, major ports in India are vital for facilitating trade, promoting economic development, and strengthening India's position in the global trading network.

Q3: Why did the import of petroleum products increase according to the Economic Survey of 2011-12?
Ans: According to the Economic Survey of 2011-12, the import of petroleum products in India increased due to various reasons. Firstly, the rapid industrialization and economic growth in the country led to an increased demand for energy, especially petroleum products. This surge in demand outpaced the domestic production capacity, necessitating higher imports. Secondly, India's inadequate refining capacity and limited availability of crude oil resources forced the country to rely on imports to meet the growing demand for petroleum products. Additionally, fluctuations in global oil prices and geopolitical factors also influenced the import of petroleum products. The survey highlighted the need for India to focus on energy security and explore alternative sources of energy to reduce dependence on imports.

Q4: Discuss the reasons behind the shift in India's trading partners and its impact on the country's economy.
Ans: India's shift in trading partners can be attributed to several factors. One reason is the changing global economic landscape, with emerging economies like China and ASEAN countries becoming major trading partners for India. These countries offer vast markets and opportunities for trade and investment. Additionally, India's efforts to diversify its export destinations and reduce dependence on traditional markets have also led to a shift in trading partners. Moreover, regional trade agreements and free trade agreements have played a role in facilitating trade with new partners.
The impact of this shift on India's economy is significant. It has helped in expanding the country's export markets and reducing vulnerability to economic downturns in specific regions. The diversification of trading partners has also improved trade balance and reduced trade deficits. However, there are challenges as well, such as adapting to different market conditions, addressing non-tariff barriers, and competing with established players in these new markets. Overall, the shift in India's trading partners has both positive and negative implications for the country's economy, necessitating strategic planning and policy interventions.

Q5: Explain the significance of Kandla Port in India's international trade and its objectives.
Ans: Kandla Port holds immense significance in India's international trade. It is one of the major ports located on the west coast of India, serving as a crucial gateway for trade with the landlocked countries of Central Asia. The port plays a vital role in facilitating the import and export of various commodities, including crude oil, chemicals, iron ore, and grains.
The objectives of Kandla Port include providing efficient and cost-effective infrastructure for handling cargo, ensuring smooth and speedy movement of goods, and promoting international trade. The port aims to achieve these objectives by continuously upgrading its facilities and adopting modern technologies. It also focuses on enhancing connectivity with the hinterland and improving the logistics chain to reduce transit time and cost. Additionally, Kandla Port aims to promote sustainable development, environmental conservation, and safety in maritime operations. Overall, Kandla Port serves as a key trade hub, contributing significantly to India's international trade and economic growth.

Q6: Describe the development and significance of Marmagao Port in Goa.
Ans: Marmagao Port, located in Goa, has played a crucial role in the development of the state and the country as a whole. The port has a long history, dating back to the Portuguese era. Over the years, it has been developed into a major port, primarily catering to the iron ore export industry.

• The significance of Marmagao Port lies in its strategic location and excellent infrastructure. It serves as a gateway for the export of iron ore from the mining-rich regions of Goa and Karnataka. The port has deep draft berths, allowing large vessels to dock and load cargo efficiently. Moreover, it is well-connected to major industrial centers and hinterland regions, facilitating the transportation of goods. Marmagao Port also contributes to the local economy by generating employment opportunities and supporting ancillary industries.
• However, the port faced challenges in recent years due to the ban on iron ore mining in Goa, which significantly impacted its operations. Despite these challenges, efforts are being made to diversify the port's cargo handling capabilities and attract new industries. The development of Marmagao Port is crucial for the economic growth of Goa and the overall maritime trade of India.

Q7: Discuss the advantages and disadvantages of air transportation for international trade.
Ans: Air transportation offers several advantages for international trade. Firstly, it provides the fastest mode of transportation, allowing for the quick delivery of goods to distant markets. This speed is particularly beneficial for perishable goods and time-sensitive products. Secondly, air transport offers reliable and predictable schedules, minimizing the risk of delays and disruptions. It also provides a high level of security for valuable and sensitive goods. Additionally, air transportation enables global connectivity, linking distant markets and facilitating trade between countries. It also allows for the transportation of small, high-value goods that can generate significant profits.
However, air transportation also has its disadvantages. Firstly, it is relatively expensive compared to other modes of transportation, making it less cost-effective for bulky or low-value goods. The limited carrying capacity of aircraft restricts the volume of goods that can be transported at once. Moreover, air transport is highly dependent on infrastructure, such as airports and air traffic control systems, which can be vulnerable to disruptions. Lastly, the environmental impact of air transportation, particularly in terms of carbon emissions, is a growing concern.

Q8: Explain the measures implemented by India to achieve its target of doubling its share in international trade.
Ans: India has implemented several measures to achieve its target of doubling its share in international trade. Firstly, it has focused on improving the ease of doing business by simplifying regulations, streamlining procedures, and reducing bureaucratic hurdles. This has created a more conducive environment for trade and investment. Secondly, India has actively pursued trade liberalization through regional and bilateral agreements. It has entered into free trade agreements (FTAs) with various countries and regional blocs to expand market access and boost exports. Thirdly, the government has invested in developing infrastructure, such as ports, airports, and logistics parks, to enhance connectivity and facilitate efficient trade operations. Fourthly, India has prioritized skill development and capacity building to enhance the competitiveness of its workforce and enable them to meet global trade standards. Additionally, the government has implemented export promotion schemes and provided financial incentives to encourage exports and attract foreign investment. Furthermore, India has focused on diversifying its export basket by promoting sectors such as pharmaceuticals, information technology, and services. These measures aim to enhance India's competitiveness, expand its export markets, and attract foreign investment, contributing to the country's goal of doubling its share in international trade.

Long Answer Type Questions

Q1: Examine the changing patterns in the composition of India's exports and imports, highlighting the factors driving these changes.
Ans: The composition of India's exports and imports has undergone significant changes over the years due to various factors. Let's analyze the key drivers behind these changes:

• Economic Reforms: The economic reforms initiated in the early 1990s played a crucial role in transforming India's trade patterns. Liberalization, privatization, and globalization policies led to an increase in exports and imports across various sectors.
• Shifting Comparative Advantage: The changing global economic landscape and India's evolving comparative advantage have influenced the composition of exports and imports. India has witnessed a shift from agriculture-based exports to a more diversified export basket, including services, pharmaceuticals, textiles, IT software, and automobiles.
• Technological Advancements: Technological advancements have played a significant role in shaping India's trade patterns. The growth of the IT sector has propelled software exports, making it one of the major contributors to India's export earnings. Similarly, advancements in the pharmaceutical industry have boosted the export of generic drugs.
• Foreign Direct Investment (FDI): Increased FDI inflows have contributed to the changing composition of both exports and imports. Foreign companies setting up manufacturing units in India have led to higher export volumes in sectors such as automobiles, electronics, and garments. Simultaneously, imports of capital goods and intermediate goods for these industries have also increased.
• Global Demand and Market Access: India's export composition has been influenced by global demand patterns and market access. As the global economy has shifted towards services and knowledge-intensive industries, India's software services, IT-enabled services, and business process outsourcing (BPO) sectors have witnessed significant export growth.
• Government Policies: Government policies, such as export promotion schemes, export incentives, and trade agreements, have also had an impact on the composition of India's exports and imports. These policies have aimed to diversify exports, promote high-value-added sectors, and reduce import dependence in certain areas.

In conclusion, the changing composition of India's exports and imports can be attributed to economic reforms, shifting comparative advantage, technological advancements, FDI inflows, global demand patterns, and government policies. These factors have collectively contributed to India's transformation from a predominantly agricultural economy to a more diversified and globally integrated trading nation.

Q2: Evaluate the role of Indian ports in facilitating international trade, considering both historical and modern perspectives.
Ans: Indian ports have played a crucial role in facilitating international trade throughout history and continue to do so in the modern era. Let's evaluate their role from both historical and modern perspectives:

Historical Perspective:

• Ancient Trade Routes: India has been an important hub of global trade since ancient times. Ports like Lothal, Dholavira, and Muziris were key centers of maritime trade connecting India with the Middle East, Africa, and Europe. These ports facilitated the exchange of goods, ideas, and cultures across regions.
• Gateway to the East: Indian ports like Surat, Calicut, and Chennai played a significant role in the European exploration of the East. These ports served as important trading posts for European powers, such as the Portuguese, Dutch, and British, enabling the exchange of goods between India, Europe, and Southeast Asia.
• Colonial Trade: During the colonial era, Indian ports became vital for the export of raw materials, such as cotton, indigo, spices, and tea, to the British Empire. Ports like Kolkata, Mumbai, and Chennai emerged as major trading centers, connecting India with the global markets.

Modern Perspective:

• Global Connectivity: Indian ports continue to serve as vital nodes in global supply chains, providing connectivity to major international trade routes. Ports like Jawaharlal Nehru Port Trust (JNPT) in Mumbai, Chennai Port, and Mundra Port have emerged as major transshipment hubs, facilitating trade between India, Asia, Europe, and Africa.
• Import-Export Activities: Indian ports handle a significant volume of imports and exports, contributing to the country's foreign trade. They facilitate the movement of commodities, such as petroleum and crude products, coal, iron ore, textiles, automobiles, and electronics, between India and its trading partners.
• Special Economic Zones (SEZs): Many Indian ports have established Special Economic Zones to attract foreign investment and promote export-oriented industries. These SEZs provide infrastructure, tax incentives, and streamlined customs procedures, making them conducive for international trade and manufacturing.
• Containerization and Logistics: The adoption of containerization and modern logistics practices has enhanced the efficiency of Indian ports. The development of container terminals, mechanization, and digitalization has improved cargo handling, reduced turnaround time, and increased the competitiveness of Indian ports in global trade.
• Coastal Shipping and Inland Waterways: Indian ports also facilitate coastal shipping and inland waterway transportation, offering cost-effective and environmentally friendly alternatives to road and rail transport. This helps in reducing congestion, lowering logistics costs, and improving overall trade efficiency.

In conclusion, Indian ports have played a significant role in facilitating international trade both historically and in the modern era. They have served as gateways to the East, promoted global connectivity, handled import-export activities, facilitated SEZs, embraced containerization and logistics advancements, and supported coastal shipping and inland waterways. These roles have contributed to the growth and development of India's trade and economy.

Q3: Discuss the challenges faced by Indian ports in the 21st century and the strategies adopted for their modernization.
Ans: Indian ports have faced several challenges in the 21st century due to increasing trade volumes, technological advancements, and evolving global trade dynamics. However, the Indian government and port authorities have adopted various strategies for the modernization of ports. Let's discuss the challenges and the strategies adopted:

Challenges faced by Indian ports:

• Infrastructure Deficiencies: Many Indian ports have faced challenges related to inadequate infrastructure, including outdated berths, insufficient container handling facilities, and limited road and rail connectivity. These deficiencies have resulted in congestion, delays, and increased logistics costs.
• Port Efficiency and Productivity: Low productivity, longer turnaround times, and inefficient cargo handling have been challenges faced by Indian ports. This has affected their competitiveness and the overall efficiency of trade operations.
• Technological Upgradation: The rapid pace of technological advancements in the shipping industry has posed challenges for Indian ports. Adopting and integrating advanced technologies, such as automated systems, digital platforms, and real-time tracking, has been a priority for modernization.
• Environmental Sustainability: Indian ports have faced challenges related to environmental sustainability, including pollution, dredging issues, and ecological concerns. Balancing economic growth with environmental conservation has been a significant challenge.

Strategies adopted for port modernization:

• Infrastructure Development: The Indian government has focused on infrastructure development through initiatives like the Sagarmala Project. This project aims to modernize ports, enhance connectivity, develop industrial clusters, and promote coastal shipping and inland waterways.
• Public-Private Partnerships (PPPs): Encouraging private sector participation through PPPs has been a key strategy for port modernization. This has attracted investments, improved efficiency, and brought in specialized expertise for port operations and infrastructure development.
• Technological Integration: Indian ports have adopted advanced technologies to enhance efficiency and transparency. This includes the implementation of automated systems for cargo handling, electronic data interchange, online payment systems, and real-time tracking.
• Dredging and Coastal Management: Dredging activities have been undertaken to deepen channels and berths, allowing larger vessels to access Indian ports. Coastal management plans have been formulated to minimize the environmental impact of dredging and maintain ecological balance.
• Skill Development and Training: Skill development programs have been initiated to enhance the capabilities of port personnel and ensure efficient operations. Training programs on modern cargo handling techniques, safety protocols, and port management have been conducted to improve productivity and professionalism.
• Green Initiatives: Indian ports have taken steps to promote sustainable practices, including the adoption of green technologies, waste management systems, and measures to reduce pollution. Renewable energy installations, such as solar power plants, are being set up to reduce dependence on conventional sources.

In conclusion, Indian ports have faced challenges such as infrastructure deficiencies, low efficiency, technological upgradation, and environmental sustainability. However, the strategies adopted for port modernization, including infrastructure development, PPPs, technological integration, dredging and coastal management, skill development, and green initiatives, have aimed to overcome these challenges and enhance the competitiveness and efficiency of Indian ports in the 21st century.

Q4: Analyze the impact of India's shifting trading partners on its economy, considering both positive and negative aspects.
Ans: India's shifting trading partners have had a significant impact on its economy, both positive and negative. Let's analyze these impacts:

Positive aspects:

• Diversification of Markets: Expanding trade relationships with new trading partners has allowed India to diversify its export destinations. This reduces dependence on a limited number of markets and enhances resilience against economic shocks in specific regions.
• Increased Export Opportunities: Collaborating with new trading partners opens up new export opportunities for Indian businesses. Access to larger consumer markets and demand for Indian products contribute to export growth, generating higher revenues and employment opportunities.
• Technology Transfer and Knowledge Exchange: Engaging with technologically advanced trading partners facilitates technology transfer and knowledge exchange. This enables Indian industries to upgrade their capabilities, improve productivity, and enhance the quality of their products and services.
• Foreign Direct Investment (FDI) Inflows: Shifting trading partners often leads to increased FDI inflows as foreign companies seek investment opportunities in India. This brings in capital, technology, managerial expertise, and job opportunities, contributing to economic growth and development.
• Access to Raw Materials and Resources: Collaborating with trading partners rich in natural resources provides India with access to essential raw materials. This reduces dependence on imports from other regions and ensures a more secure supply chain for domestic industries.

Negative aspects:

• Trade Imbalances: Shifting trading partners can lead to trade imbalances, where the value of imports exceeds exports or vice versa. Persistent trade deficits can strain the domestic economy, impact foreign exchange reserves, and contribute to macroeconomic vulnerabilities.
• Competition for Domestic Industries: Increased competition from trading partners with lower production costs and more advanced technology can pose challenges for domestic industries. If Indian industries are unable to compete effectively, it may lead to job losses and hinder the growth of certain sectors.
• Vulnerability to Global Economic Conditions: Dependence on specific trading partners can make India's economy vulnerable to global economic conditions. Economic slowdowns or crises in key trading partner countries can have spillover effects on India, impacting exports, FDI inflows, and overall economic growth.
• Geopolitical Risks: Shifting trading partners may involve engaging with countries that have geopolitical risks or uncertainties. Political tensions, trade disputes, or conflicts can disrupt trade relations, leading to market uncertainties and potential economic losses.
• Environmental Impact: Collaborating with trading partners that have lax environmental regulations can result in negative environmental impacts. Increased imports of resource-intensive products or pollution-intensive industries can contribute to environmental degradation and carbon emissions.

In conclusion, India's shifting trading partners have brought both positive and negative impacts on its economy. While diversification of markets, increased export opportunities, technology transfer, and FDI inflows have been positive, trade imbalances, competition for domestic industries, vulnerability to global economic conditions, geopolitical risks, and environmental impacts have posed challenges. It is crucial for India to carefully assess the benefits and risks associated with its trading partners and formulate appropriate policies to maximize the positive impacts and mitigate the negative consequences.