Question

Explain the three types of movements or flows within international economic exchange

Answer 1

Answer:

The three types of movements or flows in international economic exchange are

(i) Flow of Trade This refers to trade in tangible goods like wheat, cotton, etc. Historically fine cotton cloth was produced in India by weavers and exported to European countries, but when the industrial revolution started in Europe and the European countries imposed tariff barriers, this export of textiles dropped drastically. In fact, India starting exporting raw cotton and importing mill made cloth from England.

(ii) Flow of Labour This refers to migration of people in search of employment. During the nineteenth century, a large number of Indian labourers migrated to Africa, the West Indies and other countries to work on plantations and in mines as well as in railway and road construction projects set up by the Europeans. These Indians settled in the countries where they had gone after their contracts ended and now their descendants are found in these countries.

(iii) Flow of Capital This refers to movement of capital over long distances for short-term and long-term investments. Groups of Indian financiers and traders like the Sheriffs. Chatters, etc financed agricultureplantations in various Asian and African countries using their own funds or those borrowed from European banks.

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Answer 2

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1. As by the information the 1st type of movement is categorized under the movement of flow of trade of goods (materials)

2. After the flow of goods people are also moved or simply we say migrated for the search of employment hence it is the second movement.

3. As per the flow of goods (raw material) also flow of money is sander than flow of peoples. These gives a new idea of exchange of different ideas.