India trade study

Question 1

population of India

Answer 1

1.3 billion

Question 2

member of which trade group

Answer 2

SAFTA

Question 3

where is it located

Answer 3

South Asia - Himalayas and that desert act as physical barriers

Question 4

what are India’s trade patterns

Answer 4

exports and imports mainly within Asia - 48% and 58%

12% exports to USA

imports mainly mineral products - 41%

exports mainly manufactured goods - refined petroleum - 18%

Question 5

trade history pre 1990

Answer 5

policy of import substitution - imported goods had high tariffs - foreign investment restricted - to protect domestic manufacturing industries

Question 6

what happened to trade after 1990 (2)

Answer 6

creation of an open market economy - trade liberalisation and investment in education and infrastructure

turned India into one of worlds largest exporters of merchandise - services and capital - $313 billion

Question 7

how were changes of trade demonstrated (2)

Answer 7

shift in GDP contribution - agriculture and industry fell to 18% and 26%

service sector increased from 41% to 56% - showing improved education and infrastructure

Question 8

what effect did the bilateral trade agreement with china have

Answer 8

enabled india to grow and trade with another rapidly developing EDC and interdependence has increased economy dramatically

Question 9

political impacts of Indias trade (3)

Answer 9

political more stable due to trade deals

worlds largest democracy

member of G20 - significant influence in global affairs

Question 10

economic impacts of Indias trade (3)

Answer 10

local multiplier effect - around ports - investment into local economies

increased GNP due to increased trade

profits of many TNC’s in India go back to overseas HQ’s

Question 11

social impacts of Indias trade (5)

Answer 11

loss of traditional values - due to new ideas and fashion from globalisation

rise in life expectancy and literacy rate - increased HDI

nation of spenders due to increase disposable income

improved working conditions

over 3 million live on less than $1 a day - trade benefits don’t reach rural

Question 12

Bangalore background info (3)

Answer 12

largest city of IT in India - 40% of national IT

over 500 companies - accounts for $85 billion in exports annually

meaning they have the ability to rapidly interchange info and knowledge

Question 13

why do firms set up in Bangalore (3)

Answer 13

low labour costs

widespread fluency of English

positive government incentives for investment