Name the three types of flow in the global economy in early 19th century
Answers
) 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.