TRADE AND TOURISM

1. What is trade and international trade? Why is trade needed? Which are the two components of
trade?
 The exchange of goods among people, states and countries is referred to as trade. The market
is the place where such exchanges take place. Trade between two countries is called international trade.
Need for international trade:-
 Advancement of international trade of a country is an index to its economic prosperity. It is,
therefore, considered the economic barometer for a country.
 As the resources are space bound, no country can survive without international trade.
 Goods or resources possessed by one country are required by other and vice-versa These
differences create conditions for international trade.
 Foreign trade has helped India to improve its productivity of manufactured goods, contributing
to India’s economic growth thereby increasing the income level of people.
 I.T helps in exchange of surplus goods which helps in earning foreign exchange.
 Foreign trade helps a country to increase production of manufactured goods and improve the
quality of products.
 I.T also helps in importing improved technology which helps in improving production.
 India has emerged as a software giant at the international level and it is earning large foreign
exchange through the export of information technology.

Export and import are the components of trade.(DEFINE)

2. What is meant by balance of trade? How has international trade undergone a sea change in the last
fifteen years ?/ What is balance of trade? Differentiate between favourable and unfavourable
balance of trade. List various items on the export and import list
Export and import are the components of trade. The balance of trade of a country is the difference
between its export and import.
When the value of export exceeds the value of imports, it is called a favourable balance of trade.
On the contrary, if the value of imports exceeds the value of exports, it is termed as unfavourable
balance of trade.
 Export list:-agriculture and allied products(9.9%), ores and minerals(4%), gems and
jewellery(14.7%) and chemical and allied products engineering goods and petroleum
products(16.8%)
 Import list:-petroleum and petroleum products(28.6%), pearls and precious stones(9.4%)
inorganic chemicals(5.2%) coal, coke and briquettes(2.7%) machinery(6.4%) fertilizers(3.4%)
edible oils(17.4%) and newsprint(40.3%)
International trade has under gone a sea change in the last fifteen years.
 Exchange of commodities and goods have been superseded by the exchange of information and
knowledge.
 India has emerged as a software giant at the international level and it is earning large foreign
exchange through the export of information technology.

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 3. “No country can survive without international trade in the present global world”. Explain the
statement./ Advancement of International trade of a country is an index to its economic prosperity‟.
Highlight any four segments of international trade with regard to India./ What is International Trade
? Why is it called the economic barometer of the country ? Explain Favourable and Unfavourable
Balance of Trade. Also refer ans.no.10 and 11./What is trade ? Explain the meaning of balance of
trade. How favourable balance of trade is different from unfavourable balance of trade ?

Ans.no.1 and 2

4. State few salient features of India’s international trade.

 India has trade relations with all the major trading blocs and all geographical regions of the
world.
 Export list:-agriculture and allied products(9.9%), ores and minerals(4%), gems and
jewellery(14.7%) and chemical and allied products engineering goods and petroleum
products(16.8%)
 Import list:-petroleum and petroleum products(28.6%), pearls and precious stones(9.4%)
inorganic chemicals(5.2%) coal, coke and briquettes(2.7%) machinery(6.4%) fertilizers(3.4%)
edible oils(17.4%) and newsprint(40.3%)
 International trade has under gone a sea change in the last fifteen years. Exchange of
commodities and goods have been superseded by the exchange of information and knowledge.
 India has emerged as a software giant at the international level and it is earning large foreign
exchange through the export of information technology.
 Tourism has also emerged as a trade, contributing to 64,889crore of foreign exchange.
TOURISM
1.Why is tourism considered to be a part of trade as well as an industry ? Explain./ Mention few facts about
importance of‘Tourism’./ Assam with its extensive tea gardens and high production of crude oil has lot of potential
for growth of tourism. What values are associated with promotion of tourism?
 Tourism in India has grown substantially over the last three decades.
 Foreign tourist’s arrivals in the country witnessed an increase of 11.8% during the year 2010,
contributing Rs 64,889 crore of foreign exchange.
 Over 5.78 million foreign tourists visit India in 2010.
 More than 15 million people are directly engaged in the tourism industry.
 Tourism also promotes national integration, provides support to local handicrafts and cultural
pursuits.
 It also helps in the development of international understanding about our culture and heritage.
 Different types of tourism is developing in India:-heritage tourism, eco tourism, adventure
tourism, cultural tourism, medical tourism and business tourism.
 Rajasthan, Goa, Jammu and Kashmir and temple towns of south India are important
destinations of foreign tourists in India

2.What is tourism? Why it is considered as a trade?

 The definition of tourism is “The cultural , recreational and commercial visit to internal/external
places is known as tourism”
Tourism is known as trade.
 Foreign tourist’s arrivals in the country witnessed an increase of 11.8% during the year 2010,
contributing Rs 64,889 crore of foreign exchange.
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  More than 15 million people are directly engaged in the tourism industry.
 Tourism promotes national integration, provides support to local handicrafts and cultural
pursuits.
 Foreign tourists visit India for medical tourism and business tourism.
 Helps in the growth of national income and integrity.

3.Which are the different types of tourism developed in India?/give reasons for which tourists visit
India.
 Different types of tourism is developing in India:-heritage tourism, eco tourism, adventure
tourism, cultural tourism, medical tourism and business tourism.
 Rajasthan, Goa, Jammu and Kashmir and temple towns of south India are important
destinations of foreign tourists in India