International Trade
Why is international trade important?
International trade allows countries to exchange goods and services, leading to regional specialization, higher production levels, and improved standards of living.
What are the types of international trade?
International trade can be categorized into two main types: bilateral trade and multilateral trade. Bilateral trade involves two countries trading specific commodities as per an agreement between them. Multilateral trade involves multiple countries trading with each other, often under Most Favoured Nation (MFN) status.
What is the significance of the balance of trade?
The balance of trade records the volume of goods and services imported and exported by a country. A positive balance of trade occurs when exports exceed imports, while a negative balance of trade occurs when imports exceed exports. This balance has implications for a country’s economy, as a negative balance can lead to depletion of financial reserves.
What are the concerns related to international trade?
While international trade can have benefits, it also raises concerns. It can lead to dependence on other countries, uneven development, exploitation, and commercial rivalry, potentially leading to conflicts.
How do regional trade blocs contribute to international trade?
Regional trade blocs encourage trade between countries with geographic proximity, similar trading items, and complementary economies. They aim to reduce restrictions on trade within the bloc while promoting trade with the developing world. These blocs have become significant contributors to world trade, accounting for a substantial portion of global trade volume.
Chapter 8 International Trade| Class 12 Geography Notes
Class 12 Geography Notes: International Trade is an important topic in CBSE Class 12 Geography. These notes are created by subject experts to help students understand the topic easily. These notes cover important concepts like the significance of international trade, different types of trade, and concerns related to it.
With these notes, students can prepare well for their exams and improve their understanding of the subject.