NCERT Solutions for Class 12 Geography Chapter 9 - International Trade

Question 1:

Most of the world’s great ports are classified as:

  1. Naval Ports
  2. Oil Ports
  3. Comprehensive Ports
  4. Industrial Ports

(c) Industrial Ports

Question 2:

Which one of the following continents has the maximum flow of global trade?

  1. Asia
  2. North America
  3. Europe
  4. Africa

(b) North America

Question 3:

Which one of the following South American nation is a part of OPEC?

  1. Brazil
  2. Venezuela
  3. Chile
  4. Peru

(b) Venezuela

Question 4:

What is the basic function of the World Trade Organisation?


Examine the functions of the World Trade Organisation (WTO).


Examine the functions of the World Trade Organisation (WTO).

  1. To deal with the global rules of trade between nations.
  2. It resolves the disputes between its member nations.
  3. Its function is to liberalise the world from high custom tariffs and various other types of restrictions.
Question 5:

Why is it detrimental for a nation to have a negative balance of payments?


A negative balance of payments means that the 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 6:

What benefits do nations get by forming trading blocks?


Regional trade blocks encourage trade between countries with geographical proximity, similarity and complementarities in trading items. It curbs restrictions on trade of the developing world. It encourages inter-regional trade.

Question 7:

How are ports helpful for trade? Give a classification of ports on the basis of their location.


Benefits of Ports.

  1. The chief doorways of the world of international trade are its harbours and ports. Cargoes and travellers pass from one part of the world to the another through these ports.
  2. The ports provide facilities of docking, loading, unloading and the storage facilities for cargo. In order to provide these facilities, the port authorities make arrangements for maintaining the navigable channels, arranging tugs and barges, and providing labour and managerial services.
  3. The importance of a port is judged by the size of cargo and the number of ships handled.
  4. The quantity of cargo handled by a port is an indicator of the level of development of its hinterland.

Types of Ports. Generally, ports are classified according to the types of location and traffic which they handle.

  1. Inland ports. These ports are located away from the sea coast. They are linked to the sea through a river or a canal. Such ports are accessible to flat bottom ships or barges. For example, Manchester is linked with a canal; Memphis is located on river Mississippi; Rhine has several ports like Mannheim and Duisburg; and Kolkata is located on River Hoogli, a branch of river Ganga.
  2. Out ports. These are deep water ports built away from the actual ports. These serve the parent ports by receiving those ships which are unable to approach them due to their large size. Classic combination, for example, is Athens and its out port Piraeus in Greece.
Question 8:

How do nations gain from international trade?


“International trade is mutually beneficial to nations.” Analyse the statement.


International trade is the result of specialization in production. Its benefits are :

  1. It benefits the world economy if different countries practise specialization and division of labour in the production of commodities or provision of services.
  2. Each kind of specialization can give rise to trade.
  3. Thus international trade is based on the principle of comparative advantage, compli- mentaretries and, in principle, should be mutually beneficial to the trading partners.
  4. In modern times, trade is the basis of the world’s economic organization and is related to the foreign policy of nations.
  5. With well-developed transportation and communication systems, no country is willing to forego the benefits derived from participation in international trade.