Question

Explain the 3 types of flows within international economic exchange. Find 1 example of each type of flow which involved India and write a short account of it​ Class X

Answer 1

Answer:

There are three types of movements or flows within the international economic exchange.  

The first is the flow of trade which in the nineteenth century referred largely to trade in goods (e.g., cloth or wheat). The second is the flow of labour – the migration of people in search of employment. The third is the movement of capital for short-term or long-term investments over long distances.

Flow of Trade: Prior to the British rule, India exported cotton clothes to the Western world. However, in the 19th century, Britain systematically destroyed the Indian handicraft industries and began to export cheap mill made cotton clothes to India.  

Flow of Labour: This refers to the migration of labour to other countries in search of job opportunities. In the 19th century, thousands of Indians migrated to countries like Fiji, Caribbean islands and other countries to work on plantations and mines. While some of these returned after the completion of their contract, many of them settled down in the countries where they migrated. This is the reasons, that we find large number of Indians in West Indies or Fiji.

Movement of Capital for short-term or long-term Investments over long distances:  

In the 19th century, groups of Indian financiers and traders like the Shikaripuri shroffs and Nattukottai Chettiars etc. financed agricultural plantations in various Asian and African countries using their own funds or those borrowed from the European banks