NOTES PREPARED BY
KHURSHEED AHMED
TEACHER IN SCHOOL
EDUCATION DEPARTMENT
JAMMU AND KASHMIR
CHAPTER 3 (HISTORY)
" Rise of Global world"
Terminology
1.Globalization :- Free flow of economic transactions across the political boundaries of nation borderless trade is called Globalization.
2.Silk Routes :- Generally skill routes refers to the routes through which silk was transported from China to European countries. It derives its name from the lucrative trade in Chinese silk which began during HAN dynasty ( 260 B.C -220 A.D)
3.Cowries:- The Hindi Cowdi was used as a form of currency in ancient times.
4.El- dorado:- Imaginary land of great wealth in South America. It was called Fabled city of gold.
5.Corn laws: - The laws passed by British Govt. refers to restrict the import of corn. These were passed under the pressure of landed groups.
6.Rinder pest:-A cattle plague. It reached to Africa in late 1880's. It destroyed the live hood of the people as it perished 90% cattle wealth.
7.Indentured Labour:- A bounded labour under contract to work for an employer for a pacific period .
8.Hosay:- A new form of collective self expression discovered by the indentured labourers in Trinidad .
9.Tarrif:- The tax which is imposed on the imports of a country from the rest of the world.
10.Assembly line production:-This is a faster and cheaper way of producing things. It was started by Hennery Ford of USA to have a mass production of vehicles in his car plant.
11.Bretton wood's Institution:- The IMF and IRBD (international monetary fund and international bank for reconstruction and development) are called Bretton woods institutions or Bretton woods twins.
12.G-77:- Formed in 1960's by seventy seven less developed and under developed countries to demand a new international economic order (NIEO) before UN.
13.MNC's:- An enterprise operating in several countries but managed from one (Home ) country.
14.Exchange Rate:- The price of one currency interims of the other is called exchange rate. It links national currencies for purpose of trade.
15.Flexible or Floating exchange rate:- Rates determined by demand and supply forces of the open market without any intervention on part of Govt.
16.Financial Crunch:- A situation in which the govt. revenue falls drastically short of govt. expenditure.
1. Give two examples of different types of global exchange, which took place before the seventeenth century, choose one example from Asia and one from Americas.
Ans. Example from Asia:-Textiles, spices and Chinese pottery were exchanged
by china , India and south east in return for gold and silver from Europe.
Example from Americas:- Gold and foods such as Potatoes , Soya,
groundnuts Tomatoes, Maize, chilies, were first exported from the Americas to Europe.
2. Explain how the Global transfer disease in the pre-modern world helped in the colonization of the Americans.
Ans: The Global transfer of disease in the pre-modern world helped in the colonization of the Americas because the native Americans had no
immunity against the diseases that the settlers and colonizers brought with them. The Europeans were more or less immune to small pox but the native Americans, having been cut off from the rest of the world for million of years, had no defence against it. The germs killed and wiped out whole communities, paying the way for domination. Weapons and soldiers could be destroyed or resisted but disease could not be fought against.
3. Write a note to explain the effects of the following:
(a) The British government decision to abolish the corn laws :-The British government abolished Corn laws under the pressure of industrialists and urban dwellers. They were hit hard by high prices of corn as the Corn
Law had restricted the import of corn in British. It had following effects:
(i) The inflow of cheaper agriculture crops from America and Australia
than grown locally.
(ii) Many English farmers left their profession and migrated to towns and cities, the vast areas of land had remained uncultivated, which increased unemployment
(b) The Coming of Rinderpest to Africa : The coming of Rinderpest to
Africa had a terrifying impact on people's livelihood and the local income :
(i) The disease killed 90% of the cattle depriving Africans of their source of livelihood
(ii) Colonial governments monopolized the remaining cattle which forced the African to work for wages.
(iii) It enabled colonizers to subdue Africans more effectively.
(c ) The death of working age in Europe because of the world war :-
Most of the victims of world war belonged to young generation of working men. As a result, it reduced the able-bodied work force in Europe, thereby reducing household income and also affected the industries adversely. It made the feminist movement stronger who started working alongside men in every field.
(d) The Great depression on the Indian Economy :- The impact of the Great Depression in India was felt especially in the agricultural sector. It
was evident that Indian economy was closely becoming integrated to global economy. The great depression had following effects on the Indian economy.
(1) India's exports and imports nearly halved between 1928 and 1934.
(ii)The 50% fall in agricultural price led to reduction of farmer's income and agricultural exports. The govt. did not decrease their tax, so many farmers became more indebted to money lenders and corrupt officials
(iii) The urban dwellers and salaried people with fixed incomes were comparatively less affected.
(iv) It led to great rural unrest in India.
(e) The decision of MNCS to relocate production to Asian countries:
An enterprise operating in several countries but managed from one(Home) country is called MNC. From the late 1970's MNC's began to relocate production to Asian countries. Such a decision had far reaching impact:
(i) It solved the unemployment problem to some extend in Asian countries by generating employment.
(ii)It stimulated world trade, capital flow and new technology.
(iii) It enabled the Asian countries to enjoy the new varieties of things and also govt. revenue increase through tax collection.
(4) Give two examples from history to show the impact of technology on food availability.
Ans: Technology had a significant impact on food availability. Two examples from history to show the impact of technology on food availability were :
(i) The technological improvement in transport like faster railways, lighter wagons, larger ships helped transporting food more cheaply and quickly from far farms and production canters to different parts of the world.
ii) Refrigerated ships helped transport perishable foods such as meat , butter and eggs over long distances.
(5) What is meant by the Bretton woods agreement ?
Ans: The Bretton woods agreement was finalized by 730 delegates from 44 Allied nations at Mount Washington Hotel in Bretton woods (New Hampshire, USA). The conference laid down systems of rules, institutions and procedures to regulate the international monetary system. It established the International Monetary Fund (IMF) and the International Bank for
Reconstruction and Development (World bank) to preserve global economic stability and full employment in the industrial world. These institutions also dealt with external surpluses and deficits of member nations and financed post war reconstructions.
Q.No.6 :- Explain the three types of movements or flows within international economic exchange. Find one example of each type of flow which involved India and Indian's and write a short account of it.
The world changed profoundly in the nineteenth century. Economists
identified three types of movements or flows within international economic
exchanges. All three flows were closely interwoven and affected people's
lives more deeply. These flows were as follows:
(i) Flow of Trade :- It refers to trade in goods like cloth or wheat. This was made possibly by the improvement in the means of transport like railways steam engines etc.
ii) Flow of Labour: It is the migration of people in search of employment or for seeking jobs. E.g from Europe to America.
(iii) Flow of Capital : It is the movement of capital for short-term or long term investments over long distances. E.g Europeans invested in Asia, Africa and America to get huge returns.
Examples of each type of flow which involved India and Indians:
(i) India was a hub of trade in the pre-modern world. In the 19th century
British manufactured goods flooded Indians markets. As a result of
which most Indian people had to quit their jobs.
(ii) In the field of labour, thousands of Indians indentured labours were
provided for mines , plantations and factories abroad. Where they
were exposed to miserable conditions.
iii) The British industrialists made lone term and short term investments
in India, especially in plantations and mines, and made huge profits.
Indirectly but strongly. This affected the Indian economy and people.
7.Explain the causes of great Depression ?
Ans: -_Great depression was actually the outcome of world War First. It started in the U.S.A (1929-32) but soon it engulfed many countries of the
world except Russia. The following are the main causes of Great Depression:
(i) The dislocation of international trade and national economies as a result of war, greatly contributed to the economic crisis.
(ii) The problem of war debts and reparation debts which confronted various European nations contributed to economic depression.
(iii) Rationalization and mechanization of industries, no doubt enhanced the efficiency of industries but created tendencies of speculations and led to economic depression.
(iv) The maldistribution of gold caused by debtor states paying their debts to America in gold, led to shortage of gold in most of the countries. It affected the international trade adversely and led to the depression.
(v) Motivated by the spirit of economic nationalism, most of the industrially under developed countries raised high tariff walls to protect their indigenous industries. This resulted in the pilling of up on industrial products in the developed nations and contributed to depression.
(vi) The crisis of Wall Street- the share markets of New York, in which shares all of a sudden went down bought untold miseries and created panic
among investors and depositors who stopped investing and depositing. As a result, it created a cycle of depreciation.
Q8.Explain what is referred to as the G-77 countries. In what ways can G-77 be seen as a reaction to the activities of the Bretton woods twins?
Ans. G-77 countries is an abbreviation for the group of 77 developing countries which organized themselves in June, 1964 to demand a new international economic order (NIEO) before the UN. By NIEO they meant a system that would give them real control over their natural resources, more development assistance, fairer prices for raw materials and better access for their manufactured goods in developed countries markets, without being victims of neo-colonialism.
G-77 as a reaction to the activities of Bretton wood twins:-
(i).From late 1950's, Bretton woods institutions shifted their attention towards developing countries, now developing countries
came under the guidance of international agencies dominated by the formal colonial powers.
(ii)As a result of IMF and world Bank, the western industrial nations along with Japan saw an unprecedented increase in their trade,
incomes, spread of technology and enterprise between 1950- 1970. But developing countries could not be benefited by it as their natural resources were again exploited by the industrial
nations.
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