CBSE Class 12 Geography International Trade Assignment

- Exchange of goods and services among countries across national boundaries is international trade
- Initial form of trade is barter system

History of international trade
- In ancient times-trade was restricted to local markets [ transporting goods over long distances was risky]
- Silk route- Rome to china-transport of Chinese silk, roman wool and precious metals. Goods also collected from India, Persia and central Asia
- 15th century- European colonialism gave a new form of trade- slave trade
- After industrial revolution-industrialised nations imported raw materials and exported finished products to on industrialized nations
- Later half of 19 century-industrial nations became each other’s principle customers

Why does international trade exists?
- Result of specialization in production

Basis of international trade

1. Difference in national resources
- National resources are unevenly distributed because of differences in geology, relief, soil and climate
- Geology determines the mineral resource base and topographical differences ensure diversity of crops and animals raised
- Climate influences the type of flora and fauna in a given region

2. Population factors
- Distinctive forms of art and craft develop in certain cultures which are valued world over
- Eg porcelains from china, carpets of Iran
- Densely populated countries have large volume of internal trade but little external trade
- Standard of living of the population determines the demand for better quality imported products

3. Stage of economic development
- Stage of economic development influence the nature of items traded
- In agriculturally important countries agro products are exchanged for manufactured goods
- Industrialised nations export machinery and finished products and import food grains and other raw materials

4. Extent of foreign investment
- It boost trade in developing countries which lack in capital
- They develop capital intensive industries like mining, oil drilling, plantation agriculture etc
- The industrial nations ensure import of food stuffs and minerals and create markets for their finished products

5. Transport
Expansion of rail, ocean and air transport, better means of refrigeration and preservation trade has experienced spatial expansion

Important aspects of international trade

1. Volume of trade
- The total value of goods and services traded is called the volume of trade

2. Composition of trade
- The nature of goods and services imported and exported by countries have undergone changes
- Beginning of last century- trade of primary products was predominant
- Later manufactured goods gained prominence
- Currently services have been showing an upward trend

3. Direction of trade
- The developing countries of the present used to export valuable goods and artefacts etc to European countries
- 19th century-reversal in the direction of trade
- European countries started exporting manufactured goods for exchange of food stuffs and raw materials from their colonies. Europe and USA emerged as major trade partners. The third important trading country was Japan
- Second half of 20th century-drastic change in trade pattern
- Europe lost its colonies, while India china and other developing countries started competing with developed countries

Balance of trade
- The difference between the volume of goods and services imported as well as exported by a country to other countries
- Negative/ unfavourable balance of trade= import value> export value
- Positive/favourable= export value> import value
- Negative balance- country spends more on buying goods than it can earn by selling its goods. This would ultimately lead to exhaustion of its financial reserves

Types of international trade
2 types

Bilateral trade
Trade done by two countries with each other. The countries enter into agreement to trade specified commodities amongst them

Multilateral trade
Trade conducted with many trading countries. The same country can trade with a number of other countries

Free Trade
- The act of opening up economies for trading is known as free trade or trade liberalization
- The trade barriers like tariffs is brought down for free trade
- Trade liberalization allows goods and services from everywhere to compete with domestic products and services

Dumping
- The practice of selling a commodity in two countries at a price that differs for reasons not related to costs is called dumping

World trade organisation
- 1948- GATT[General Agreement for Tariffs and Trade] formed
- Aim- to liberalise the world from high customs tariff and various other types of restrictions
- 1994- decision to set up a permanenet institution for looking after the promotion of free and fair trade amongst nation
- GATT- transformed to WTO-on 1st January 1995

World Trade Organisation
- It is the only international organisation dealing with the global rules of trade between nations
- It sets the rules for the global trading system
- It resolves disputes between its member nations
- It also covers trade in services such as telecommunication and banking and issues llike intellectual rights

WTO-Criticisms
- Free trade widening the gulf between rich and poor[influential nations in the WTO focus on their own commercial interests]
- Developed countries have not fully opened their markets to products from developing countries
- Issues of health, worker’s rights child labour and environment are ignored

Regional trade blocs

- Emergence of trade blocs- reasons
a. Failure of the global organisations to speed up intra regional trade
b. To encourage trade between countries with geographical proximity, similarity and complementarities in trading items
c. To curb restrictions on trade of the developing world
- 120 regional trade blocs generate 52% of the world trade

International trade-advantages
1. Regional specialization
2. Higher level of production
3. Better standard of living
4. World wide availability of goods and services
5. Equalization of prices and wages
6. Diffusion of knowledge and culture

International trade-disadvantages
1. Dependence on other countries
2. Uneven levels of development
3. Exploitation of resources
4. Commercial rivalry leading to wars
5. Create more pollution
6. Health concerns not addressed

Gateways of international trade
Cargoes and travelers pass from one part of the world to another through ports. So they are called gateways of international trade
Facilities provided by ports
1. Docking[structure for handling ships]
2. Loading and unloading
3. Storage facilities for cargo
4. Maintenance of navigable channels
5. Arranging tugs[a boat that move vessels that cannot move themselves alone] and barges[ flat bottom boat built mainly for river and canal transport of heavy goods]
6. Labour and managerial services

Types of port

1. On the basis of the type of traffic handled- 3 types
Industrial ports
- These ports specialize in bulk cargo[transported unpacked in large quantities]
- Eg- grains, ore
Commercial ports
- Handle general cargo, packaged products and manufactured good[boxes, bales, barrels]
- Also handle passenger traffic
Comprehensive ports
- Handle bulk and general cargo

2. On the basis of location- 2 types
Inland ports
- Located away from sea coast
- Linked to the sea through a river or canal
- Eg-kolkata on river hugli
Outports
- These are deep water ports built away from the actual ports
- Serve parent ports by receiving large sized ships unable to reach them
- Eg- Athens- outport- Piraeus

3. On the basis of functions-5 types

Oilports
- Deal in the processing and shipping of oil
- Some are tanker ports and some are refinery ports

Ports of call
- These are ports which originally developed as calling points on main sea routes for refueling, watering and taking food item
- Eg Singapore

Packet station
- Also called ferry ports
- Concerned with the transportation of passengers and mail across water bodies covering short distances
- Eg-Dover in England and Calais in France across English channel

Entrepot ports
- These are collection centres where the goods are brought from different countries for export
- Eg Singapore

Naval ports
- These are ports which have only strategic importance
- These ports serve warships and have repair workshops for them
- Eg kochi

Question. Mannheim and Duisburg ports are located on which river?
(a) Rhine
(b) Danube
(c) Hughli
(d) Mississippi

Answer. A 

Question. The headquarters of European Union is located at
(a) Vienna
(b) Brussels
(c) Minsk
(d) Jakarta

Answer. B

Question. Where is the headquarter of European union located?
(a) Geneva, Switzerland
(b) Brussels, Belgium
(c) Montevideo, Uruguay
(d) Minsk, Belarus

Answer. B

Question. Which of the following factors determines international trade between countries?
(a) Population
(b) Mineral Resources
(c) Foreign Investment
(d) All of these

Answer. D

Question. Which of the following is a member state of Latin American Integration Association (LAIA)?
(a) Sweden
(b) Bolivia
(c) Hungary
(d) Belarus

Answer. B

Question. The silk route had a length of ............. km connecting Rome and China.
(a) 2000 km
(b) 6000 km
(c) 60,000 km
(d) 1200 km

Answer. B 

Question. Which of the following is not a Entrepot Port?
(a) Copenhagen
(b) Rotterdam
(c) Singapore
(d) Dover

Answer. D

Question. WTO was established on which of the following date?
(a) 1st January, 1995
(b) 1st January 1994
(c) 1st January, 1996
(d) 1st January 1993

Answer. A

Question. Memphis port is located on which river?
(a) Rhine
(b) Orange
(c) Mississipi
(d) Thames

Answer. C 

Question. What is the main motive of OPEC countries?
(a) Reduce tarrifs on international trade
(b) Coordinate and unify petroleum policies
(c) Single market with single currency
(d) Cooperation on matters of politics

Answer. B 

Question. Which of the following describes composition of trade?
(a) Total value of goods and services.
(b) Nature of goods and services imported and exported.
(c) Destination of exports and imports.
(d) None of the above

Answer. B

Question. Which of these objects served as a form of money initially before the introduction of paper currency?
1. Obsidian
2. Iron
3. Cloth
4. Copper
5. Silver
Codes
(a) 1, 2, 3 and 4
(b) 2, 3, 4 and
(c) 1, 4 and 5
(d) 2, 3 and 5

Answer. C

Question. Which of the following ports are used as collection centres?
(a) Pocket station
(b) Entrepot ports
(c) Naval ports
(d) Call ports

Answer. B

Question. The headquarters of WTO is at
(a) Geneva
(b) Mumbai
(c) Zurich
(d) Istanbul

Answer. A 

Question. Most of the world’s great ports are classified as
(a) Naval ports
(b) Comprehensive ports
(c) Oil ports
(d) Industrial ports

Answer. B

Question. Which one of the following continents has the maximum f low of global trade?
(a) Asia
(b) Europe
(c) North America
(d) Africa

Answer. B

Question. European commerce grew after the disintegration of ............ Empire with the development of ocean going warships in 12th century AD.
(a) Byzantine
(b) Roman
(c) British
(d) Mughal

Answer. B

Question. In which of the following trade blocs, is India an associate member?
(a) SAFTA
(b) ASEAN
(c) OECD
(d) OPEC

Answer. A

Question. Which of the following is not a tanker port?
(a) Maracaibo
(b) Esskhira
(c) Tripoli
(d) Abadan

Answer. D

Question. Which one of the following South American nations is part of OPEC?
(a) Brazil
(b) Venezuela
(b) Chile
(d) Peru

Answer. B 

Question. Where is the Headquater of WTO located?
(a) Geneva, Switzerland
(b) Jakarta, Indonesia
(c) New York, USA
(d) Kathmandu, Nepal

Answer. A

Question. Match the following.
List I (Organisation)          List II (Established)
A. ASEAN                              1. 1995
B. WTO                                 2. 1967
C. NAFTA                              3. 1994
Codes
A B C A B C
(a) 1 2 3
(b) 1 3 2
(c) 3 2 1
(d) 2 1 3

Answer. D

Question. Match the following.
List I                                        List II
(Types of Port)                        (Port)
A. Ports of Call                     1. Memphis
B. Inland Port                      2. Aden
C. Tanker Port                      3. Tripoli
Codes
A B C
(a) 1 3 2
(b) 2 1 3
(c) 2 3 1
(d) 1 2 3

Answer. B

Question. Arrange the following organisations according to the year of their formation and choose the correct option.
1. ASEAN 2. EU 3. WTO 4. OPEC
Codes
(a) 2, 1, 3, 4
(b) 4, 2, 1, 3
(c) 4, 1, 2, 3
(d) 3, 1, 2, 4

Answer. C

Question. Arrange the following events in the history of international trade in a sequential order.
1. Trade on silk route.
2. Trade growth after industrial revolution.
3. Slave trade.
4. Growth of trade between Europe and Asia.
Codes
(a) 1, 3, 2, 4
(b) 1, 4, 3, 2
(c) 2, 1, 3, 4
(d) 1, 2, 3, 4

Answer. B

Question. What is barter system?
Answer. Initial form of trade is barter system. A commodity is exchanged for another commodity

Question. What is international trade?
Answer. Exchange of goods and services among countries across national boundaries is international trade

Question. What was the initial form of trade in the primitive society?
Answer. Initial form of trade is barter system

Question. What form of trade is depicted in the figure

Answer. Barter

Question. Where does this mela take place?
Answer. Jagirod 35 km from Guwahati

Question. Name the type of trade shown in the above advertisement. Also write the name of the continent where it was prevalent.
Answer. Slave trade. It was prevalent in Africa

Question.When did slave trade emerge in the world
Answer. 15th century

Question. In which year slave trade was abolished in Denmark, Great Britain and USA
Answer. It was abolished in Denmark in 1792, Great Britain in 1807 and United States in 1808.

Question. How is the difference in national resources a basis of international trade? Explain with three examples.
Difference in national resources
Answer. 
- National resources are unevenly distributed because of differences in geology, relief, soil and climate
- Geology determines the mineral resource base
- topographical differences ensure diversity of crops and animals raised
- Climate influences the type of flora and fauna in a given region

Question. What are the important aspects of international trade?
Answer. Volume of trade
- The total value of goods and services traded is called the volume of trade
Composition of trade
- The nature of goods and services imported and exported by countries have undergone changes
- Beginning of last century- trade of primary products was predominant
- Later manufactured goods gained prominence
- Currently services have been showing an upward trend
Direction of trade
- The developing countries of the present used to export valuable goods and artefacts etc to European countries
- 19th century-reversal in the direction of trade
- European countries started exporting manufactured goods for exchange of food stuffs and raw materials from their colonies. Europe and USA emerged as major trade partners. The third important trading country was Japan
- Second half of 20th century-drastic change in trade pattern
- Europe lost its colonies, while India china and other developing countries started competing with developed countries

Question. What is it detrimental for a nation to have negative balance of payments?
Answer. Negative balance- country spends more on buying goods than it can earn by selling its goods. This would ultimately lead to exhaustion of its financial reserves

Question. What is free trade?
Answer. The act of opening up economies for trading is known as free trade or trade liberalization

Question. What is dumping?
Answer. The practice of selling a commodity in two countries at a price that differs for reasons not related to costs is called dumping

Question. Where is the headquarters of WTO located?
Answer. Geneva Switzerland

Question. W.T.O. is often criticized for widening the Gap between developed and developing countries. Examine critically.
Answer. 
- Free trade widening the gulf between rich and poor[influential nations in the WTO focus on their own commercial interests]
- Developed countries have not fully opened their markets to products from developing countries
- Issues of health, worker’s rights child labour and environment are ignored

Question. Name the regional trade bloc of which India is a member.
Answer. SAFTA

Question. Where is the headquarters of ASEAN situated?
Answer. Jakarta, Indonesia

Question. Which are the two types of ports based on location? Write any two features of each type of port.
Answer. On the basis of location- 2 types
Inland ports
- Located away from sea coast
- Linked to the sea through a river or canal
- Eg-kolkata on river hugli
Outports
- These are deep water ports built away from the actual ports
- Serve parent ports by receiving large sized ships unable to reach them
- Eg- Athens- outport- Piraeus

Question. Match the following
Answer. List I- inland ports, out ports, oil ports, ports of call, packet stations, entrepot ports, naval ports
List II- kochi, Rotterdam, Calais, Aden, Tripoli, Athens, Memphis
List I                     List II
Inland ports           Memphis
Out ports              Athens
Oil ports                Tripoli
Ports of call           Aden
Packet station       Calais
Entrepot ports        Rotterdam
Naval ports            Kochi

Question 1. Write the full form of OPEC
Answer: Organization of the Petroleum Exporting Countries.
In simple words: OPEC stands for Organization of the Petroleum Exporting Countries, which is an international cartel of oil-producing nations.

Exam Tip: Memorize exact capitalizations and standard full forms of major global trade and economic organizations.

Question 2. Name the service land in and around the port
Answer: Hinterland.
In simple words: The hinterland is the inland area directly connected to a port that supplies exports and receives imports.

Exam Tip: Hinterland is a key geographical term frequently asked in map-based and short-answer questions.

Question 3. Name the type of trade between the countries
Answer: International trade or Bilateral trade (depending on the number of participating nations).
In simple words: Trade that takes place across national borders between two or more countries is called international trade.

Exam Tip: Distinguish clearly between domestic trade (within national boundaries) and international trade (across borders).

Question 4. Name the International Organisation dealing with global rules of trade between nations
Answer: World Trade Organization (WTO).
In simple words: The WTO is the global institution that sets and oversees the rules governing international commerce.

Exam Tip: Note that WTO replaced GATT (General Agreement on Tariffs and Trade) as the primary global trade arbiter.

Question 5. What do you mean by Balance of trade?
Answer: The balance of trade records the volume of goods and services imported as compared to those exported by a country to other countries. If the value of exports exceeds imports, it is a positive (favorable) balance of trade; if imports exceed exports, it is a negative (unfavorable) balance of trade.
In simple words: Balance of trade is the difference in value between a country's total imported and exported goods.

Exam Tip: Clearly state the formula: Export value minus Import value determines the trade balance.

Question 6. Define the term Hinterland
Answer: Hinterland is the service land located in and around a port, connected through railways and roadways, which supplies goods for export and consumes imported goods arriving at the port.
In simple words: It is the interior region served by a port for cargo collection and distribution.

Exam Tip: Mention the transport linkage (roadways and railways) to secure full marks in definition questions.

Question 7. What is Dumping?
Answer: Dumping occurs when excess producing countries sell their products in underdeveloped or developing countries at extremely low fixed prices, often below production cost, to eliminate local competition and capture markets without trade liberalization benefits.
In simple words: Dumping is selling goods abroad at unfairly low prices to undermine local producers.

Exam Tip: Understand that dumping creates unfair trade practices and harms domestic industries in importing nations.

Question 8. Define slave trade
Answer: Slave trade was a historic form of commerce where European countries like the Netherlands and Italy engaged in the buying and selling of human beings as forced laborers.
In simple words: Slave trade was the inhuman commercial practice of trafficking and enslaving human beings.

Exam Tip: Keep historical examples (such as European maritime nations) handy when referencing early global trade aberrations.

Question 9. Categorise International trade into two types
Answer: (1) Bilateral trade
(2) Multilateral trade
In simple words: International trade is classified into bilateral (between two countries) and multilateral (among multiple countries).

Question 10. Name the type of most of the Great ports belong to
Answer: Comprehensive ports.
In simple words: Major world ports usually handle bulk and general cargo for diverse economic needs, making them comprehensive ports.

Exam Tip: Comprehensive ports handle both passenger traffic and bulk commercial cargo.

Question 11. Name the important entreport port of Asia
Answer: Singapore.
In simple words: Singapore acts as a major entreport port in Asia where goods are imported, stored, and re-exported.

Exam Tip: An entreport port serves as a collection and distribution center for international merchandise trade.

Question 12. Which association is the largest single market in the world
Answer: European Union (EU).
In simple words: The European Union forms the largest integrated single market globally.

Exam Tip: Note that single markets allow free movement of goods, services, capital, and people among member nations.

Question 13. Study the table given below and answer the questions:

(1.1) Calculate the balance of trade in 2005
(1.2) Why do you think that the volume of trade has increased over the decade?
(1.3) What had been the growth in the import during the year 2005 over the year 1955
Answer:
(1.1) Balance of trade in 2005 = Exports - Imports = \(10393000 - 10753000 = -360000\) million U.S. $
(1.2) (a) Growth in manufacturing sector
(b) Growth in service sector
(c) Specialization in agriculture and in other sectors
(1.3) Approximately 108 times (\(10753000 \div 99000 \approx 108.6\))
In simple words: Trade data analysis shows massive expansion in global exchange driven by industrialization and market integration.

Exam Tip: Always show subtraction for trade balance and division for growth factor calculations.

Question 14. Why are ports always referred to as gateway of international trade
Answer:
- The word port is derived from the Latin word "Porta" meaning Gateway.
- Port is a connecting link between land and water.
- It is a place on the coast where ships start and end their journey.
- Here reached Cargo is unloaded and the Cargo which is to be exported is loaded.
- Port provides facilities of export and import.
- It is well connected to the interior of the country by a good network of roadways and railways.
In simple words: Ports serve as vital transition nodes where ocean routes meet inland transportation networks.

Exam Tip: Bullet points listing geographical functions ensure maximum marks in descriptive questions.

Question 15. Classify ports on various bases.
Answer:
On the basis of Cargo handled:
(i) Industrial ports
(ii) Commercial ports
(iii) Comprehensive ports
On the basis of location:
(i) Inland ports
(ii) Out ports
On the basis of specialised functions:
(i) Oil ports
(ii) Ports of call
(iii) Packet stations
(iv) Entrepot ports
(v) Naval ports
In simple words: Ports are categorized according to the type of cargo handled, geographic location, and primary specialized function.

Exam Tip: Group classifications neatly under clear sub-headings to demonstrate structured knowledge.

Question 16. Explain five basis of International Trade
Answer:
(i) Variation in the availability of natural resources (geological structure, mineral resources, climate)
(ii) Difference in the level of economic development
(iii) Population factors (cultural factors, size of population)
(iv) Transportation
(v) Government policies
(vi) Extent of foreign investment
In simple words: Differences in natural endowments, economic advancement, population size, and government policies drive global trade.

Exam Tip: List any five main headings clearly with a brief explanatory sentence for each.

Question 17. Define the Word port? Write the classification of ports on the basis of their location
Answer: Port - Ports are the medium of trade between two countries. It is that place on the coast where cargo in large quantity is received from oceanic routes and sent to the interior parts of the country.
Two types of Ports on the basis of location:
(i) Outports: Deep water ports built away from the actual port.
(ii) Inland ports: Located away from the coast and linked with the sea through a river or a canal.
In simple words: Ports are coastal facilities for transferring cargo between ships and land transport, classified by location into outports and inland ports.

Exam Tip: Clearly separate definition from classification sub-parts.

Question 18. What is international trade? Which are the two types of international trade? Give one characteristics of each.
Answer:
International Trade - The movement of goods and services from areas of surplus to deficit areas between two or more countries.
The Two types of international trade:
(1) Bilateral Trade - The exchanging of goods between two countries.
(2) Multilateral Trade - The exchange takes place between several countries on a regular basis.
In simple words: International trade is cross-border exchange, divided into bilateral (two countries) and multilateral (multiple countries).

Exam Tip: Provide both the definition and distinguishing characteristics of bilateral and multilateral trade.

Question 19. "Ports are the gateways of international trade." Justify the statement
Answer:
(i) It is a gateway from land to sea or from sea to land.
(ii) Coasts provide facilities such as docking, loading, etc.
(iii) It handles export and import trade of a country.
(iv) Imports are sent to the hinterland of a port.
(v) Travellers pass from one part of the world to another.
In simple words: Ports act as essential transit hubs linking maritime routes with inland economies for passenger and cargo movement.

Exam Tip: Use point-wise justification to substantiate geographical statements.

Question 20. Classify the ports on the basis of Specialized functions and give one example each.
Answer:
(i) Oil ports - Abadan on the Gulf of Persia
(ii) Ports of Call - Singapore
(iii) Packet Station - Dover in England
(iv) Entrepot Ports - Rotterdam for Europe
(v) Naval Ports - Kochi
In simple words: Ports perform specialized functions such as fueling, cargo transfer, and naval operations, each with specific global examples.

Exam Tip: Associating correct world examples with port functional types is vital for scoring full marks.

Question 21. Define trade balance and distinguish between positive trade balance and negative trade balance.
Answer:
Trade balance is the difference between the monetary value of a country's exports and imports over a given period.
- Positive Trade Balance (Favorable): When the value of exports is greater than the value of imports.\
- Negative Trade Balance (Unfavorable): When the value of imports exceeds the value of exports.
In simple words: Trade balance compares export earnings against import spending, yielding either a surplus (positive) or deficit (negative).

Exam Tip: Use terms favorable/unfavorable alongside positive/negative for precision.

Question 22. Write short notes on the following topics:
(1) Barter system
(2) Slave trade
(3) Dumping
Answer:
(1) Barter system: Direct exchange of goods without the use of money, practiced in early primitive societies.
(2) Slave trade: Historical human trafficking and commercial exchange of enslaved people, prominently practiced by European maritime nations.
(3) Dumping: Practice of selling goods in a foreign market at prices below production cost to undermine local competitors.
In simple words: Short notes summarize historical and economic trade concepts concisely.

Exam Tip: Keep short notes structured with a clear definition and key features for each term.

Question 23. What are the function of WTO.
Answer:
(1) Solves disputes among member countries regarding trade rules.
(2) Provides trade services and a forum for negotiating trade agreements.
(3) Deals with the global rules of trade between nations.
In simple words: The WTO regulates international trade, resolves disputes, and provides a platform for trade negotiations.

Exam Tip: Remember WTO functions: dispute settlement, rule-making, and trade policy reviews.

Question 25. Study the table and answer the questions that follow:

(15.1) Which decade shows the highest increase of total value of imports and exports of goods of and services?
(15.2) How much is the increase in total value of exports during 1955 to 2005?
(15.3) Why does the need for trade arise?
Answer:
(15.1) The decade between 1995 and 2005 (or 1985 to 1995) shows the highest absolute increase in total trade volume.
(15.2) Increase in total value of exports during 1955 to 2005 = \(1,03,93,000 - 95,000 = 1,02,98,000\) million U.S. $
(15.3) The need for trade arises because natural resources, climatic conditions, skills, and economic development are unevenly distributed across the globe, creating surpluses in some regions and deficits in others.
In simple words: Trade arises from geographical and economic differences between nations, leading to massive global volume growth over decades.

Exam Tip: Read statistical tables carefully and show subtraction steps clearly for numerical differences.