1. Classify the trade taking place between following regions :
(A) Maharashtra and Punjab
Answer. Domestic trade
(B) India and Japan
Answer. International trade
(C) Lasalgaon and Pune
Answer. Domestic trade
(D) China and Canada
Answer. International trade
(E) India and European Union
Answer. International trade
2. Write the correct word- Import or Export for the following :
(A) India buys crude oil from the Middle-East Asian countries.
Answer. Import
(B) Wheat is sent to Asian countries from Canada.
Answer. Export
(C) Japan sends machine parts to APEC countries.
Answer. Export
3. Correct and rewrite the wrong statements :
(A) India is a self-sufficient country.
Answer.
Corrected: India is not a self-sufficient country; it depends on trade for many goods.
(B) The place where there is excess production does not have demand for those products.
Answer.
Corrected: The place where there is excess production has low demand, so it supplies to other areas.
(C) International trade processes are easier than local trade.
Answer.
Corrected: International trade processes are more complex than local trade due to laws and currencies.
(D) SAARC works towards economic development and enhancing the social and cultural harmony of the South- East Asian countries.
Answer.
Corrected: SAARC works towards economic development and enhancing the social and cultural harmony of South Asian countries.
4. Identify and write the type of trade:
(A) Srushti brought sugar from the grocery shop.
Answer.
Retail Trade
(B) The traders from Surat bought cotton from the farmers of Maharashtra.
Answer.
Wholesale Trade.
(C) Sameer has exported pomegranates from his farms to Australia.
Answer.
International Trade.
(D) Sadabhau bought 10 sacks of wheat and 5 sacks of rice from Market Yard for selling in his own shop.
Answer.
Wholesale Trade.
5. Write answers in short:
(A) Create a flowchart showing the types of trade.
Answer.
Trade refers to buying and selling for fulfilling each other’s needs.
Trade is divided into two categories:
- On the basis of the quantity of goods.
- On the basis of the extent of trade region.
(B) Explain the difference in types of balances of trade.
Answer.
The difference between the import and export values of a country in a specific period is called balance of trade.
The different types of balance of trade are:
- Unfavourable Balance of Trade: When the value of imports is more than the value of exports, it is called ‘Unfavourable Balance of Trade.’
- Favourable Balance of Trade: When the value of exports is more than the value of imports, it is called ‘Favourable Balance of Trade.’
- 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.
Answer.
WTO stands for World Trade Organisation. The main objectives of WTO are:
- To provide platform for negotiations in international trade.
- To handle the differences related to trade.
- To monitor the trade policies of member states.
- To provide a technological assistance and training to developing countries.
(D) What is the difference between the OPEC and APEC in terms of their functions?
Answer.
| OPEC | APEC |
| (i) OPEC stands for Organisation of Petroleum Exporting Countries. | APEC stands for Asia-Pacific Economic Cooperation (APEC). |
| (ii) OPEC is the organisation of oil-producing and exporting countries. | APEC is the regional organisation of the countries in the Asia Pacific region. |
| (iii) It keeps control over the international trade of crude oil. | 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. | It promotes regional and technical cooperation among members. |
(E) Write the functions of the important trade organisations in Asia.
Answer.
Important trade organisations in Asia are:
Association of South East Asian Nations (ASEAN)
- To expand social and cultural harmony along with economic growth in South East Asia.
- To promote regional peace.
- To promote tax waivers for trade growth in member states.
Asia Pacific Economic Co-operation (APEC)
- To promote free trade and economic co¬operation in the Asia-Pacific Ocean region.
- To promote regional and technical co-operation among members.
(F) What is the importance of marketing from farmers ‘point of view’?
Answer.
Marketing involves price of a commodity, its sales promotion, its advertising and its proper distribution.
- In the traditional marketing system, the farmers used to sell their products in the local market at whatever price available. This is because the fruits and vegetables are perishable, so the farmers used to incur losses,
- However, the modem farmers have acquired skills in marketing. They are aware of the trends in the market.
- They produce food grains and fruits as per the international standards.
- They undertake grading and packaging of their products. The presentation of any product has become indispensable now.
- They advertise the quality of their product and keep the same for sale, along with samples, in the mall.
- These commercial-minded farmers contact the supermarkets and exporters through the internet.
- As a result, their products are sold at a higher price in the malls. They also fetch a good price from exports.
- Thus marketing is as important as the cultivation of crops. By following modem marketing techniques, the income of the farmers can increase and that can improve their standard of living.
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.
Answer.
- China has a balance of trade.
- India, USA and Brazil have an unfavourable balance of trade.
- The volume of international trade of China and the USA is maximum.
- International trade of India and Brazil is insignificant.
- International trade is dominated by China and the USA.
