The making of the global world questions and answers

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Exercise question and answer

1. Give two examples of different types of global exchanges which took place before the seventeenth century, choosing one example from Asia and one from the Americas.

Ans: Before the seventeenth century, there were several significant global exchanges that took place across different regions of the world. Here are two examples, one from Asia and one from the Americas:

Silk Road ( Asia): The silk routes are a good example of vibrant pre-modern trade before the 17th century. The historians identified several silk routes, overland and by sea, linking Asia with Europe and northern Africa. These routes were used for trades in Chinese pottery, textiles, and spices from India and Southeast Asia. In return, precious metals – gold and silver – came from Europe to Asia.’ Secondly, Christian missionaries and later Muslim preachers travelled through these routes. It may be mentioned here that in ancient times, Buddhism too spread in several directions through intersecting points on the silk routes.

Columbia exchanges (Americas): After the discovery of the Americas by Christopher Columbus, many of our common foods such as potatoes, soya, groundnuts, maize, tomatoes, and chilies came from America’s original inhabitants the American Indians. From the sixteenth century, America’s vast lands, abundant crops, and minerals transformed trade and lives everywhere.

2. Explain how the global transfer of disease in the pre-modern world helped in the colonisation of the Americas.

Ans: the global transfer of disease in the pre-modern world helped in the colonisation of the Americas. The reason was:

• The Portuguese and Spanish conquest and colonisation of America by the mid-sixteenth century.
• The Spanish have a powerful weapon that was not military.
• The conquerors by carried germs, including smallpox. 
• America’s original inhabitants had no immunity, leading to devastating epidemics.
• Smallpox spread rapidly across the continent, paving the way for conquest.
• America had no defence mechanism against it.
• So they isolated in the old world.
• Poverty, hunger, overcrowded cities, deadly diseases, and religious conflicts were prevalent in Europe until the nineteenth century.
• Thousands of Europeans migrated to America to escape these conditions.

3. Write a note to explain the effects of the following:

a) The British government’s decision to abolish the Corn Laws.

Ans: The British government’s decision to abolish the Corn Laws because

• The government was under pressure from landed groups, and restricted the import of corn through laws known as the ‘Corn Laws.’
• The abolition of the Corn Laws was demanded by industrialists and urban dwellers due to high food prices.
• The scrapping of the Corn Laws led to cheaper food imports, making it difficult for British agriculture to compete.
• Uncultivated lands increased, and many workers became unemployed, leading to migration to cities or overseas.

b) The coming of Rinderpest to Africa.

Ans:

• Rinderpest arrived in Africa in the late 1880s.
• It was carried by infected cattle imported from British Asia to feed the Italian soldiers invading Eritrea in East Africa.
• Entering Africa in the east, rinderpest moved west ‘like a forest fire’, reaching Africa’s Atlantic coast in 1892.
• It reached the Cape (Africa’s southernmost tip) five years later. 
• The way rinderpest killed 90 percent of the cattle. The loss of cattle destroyed African livelihoods. Planters, mine owners, and colonial governments now successfully monopolised what scarce cattle resources remained, to strengthen their power and to force Africans into the labour market.

c) The death of men of working-age in Europe because of the World War.

Ans:

•  It was the first modern industrial war.
• They use modern weapons such as machine guns, tanks, aircraft, and chemical weapons were employed on a large scale during the war.
• The war caused massive death and destruction with approximately 9 million deaths and 20 million injuries.
• Most of the killed and maimed were men of working age.
• These deaths and injuries reduced the able-bodied workforce in Europe.
• With fewer numbers within the family, household incomes declined after the war.
• Millions of soldiers were recruited and transported to the frontlines via ships and trains.
• women stepped in to undertake jobs that earlier only men were expected to do.

d) The Great Depression on the Indian economy.

Ans:

• The Great Depression began around 1929 and lasted till the mid-1930s and had a severe impact on production, employment, incomes, and trade in the world.
• Agricultural regions and communities were affected, as the fall in agricultural prices was greater and prolonged compared to industrial goods.
• The depression was caused by a combination of factors, including agricultural overproduction and falling prices, leading to a surplus in the market.
• Many countries had financed their investments through loans from the US, but the withdrawal of US loans created a crisis as lenders panicked and reduced lending.
• The withdrawal of US loans affected different regions in various ways, such as bank failures, currency collapses in Europe, and a slump in agricultural and raw material prices in Latin America and other areas.

e) The decision of MNCs to relocate production to Asian countries.

Ans:

• Wages were relatively low in Asian countries like China. Thus they became attractive destinations for investment by foreign MNCs competing to capture world markets.
• This is because of the excess supply of workers.
• They have a low-cost structure of the economy.
• The relocation of industry to low-wage countries stimulated world trade and capital flows.
• In the last two decades the world’s economic geography has been transformed as countries such as India, China, and Brazil have undergone rapid economic transformation

4. Give two examples from history to show the impact of technology on food availability.

Ans: examples from history to show the impact of technology on food availability:-

Transport technology:-

• Technological advancements played a crucial role in the transformation of the nineteenth-century world.
• Colonization stimulated investments and improvements in transportation like faster railways, lighter wagons, and larger ships.
• These advancements in transport facilitated the movement of food more cheaply and quickly from distant farms to final markets.
• The trade-in meat offers a good example of this connection process.

Refrigerator technology:-

• Previously, live animals were shipped from America to Europe, but this method was inefficient and expensive.
• The development of refrigerated ships enabled the transport of perishable foods over long distances.
• With the introduction of refrigerated ships, animals could be slaughtered at the starting point (e.g., America, Australia, or New Zealand) and then transported as frozen meat to Europe.
• This innovation reduced shipping costs and made meat more affordable in Europe, benefiting the European poor.
• The availability of affordable meat, along with other perishable foods like butter and eggs, diversified the diet of the European population, promoting better living conditions and social peace within the country.

5. What is meant by the Bretton Woods Agreement?

Ans: The Bretton Woods Agreement:-

• The post-war international economic system aimed to preserve economic stability and full employment in the industrialized world.
• The framework for this system was established at the Bretton Woods conference in July 1944, held in Bretton Woods, New Hampshire, USA.
• The conference resulted in the creation of the International Monetary Fund (IMF) to address external surpluses and deficits of member nations and establish the International Bank for Reconstruction and Development (World Bank) to finance post-war reconstruction.
• The IMF and the World Bank are collectively known as the Bretton Woods institutions.
• These institutions began their financial operations in 1947, with decision-making predominantly controlled by the Western industrial powers. The US holds significant influence, including effective veto power over key decisions.
• The international monetary system, which connects national currencies and monetary systems, was based on fixed exchange rates under the Bretton Woods system.
• In this system, national currencies were pegged to the US dollar at a fixed exchange rate, and the dollar was tied to gold at a fixed price of $35 per ounce.

6. Imagine that you are an indentured Indian labourer in the Caribbean. Drawing from the details in this chapter, write a letter to your family describing your life and feelings.

Ans:

Dear Family Members,

I hope you all are doing great and are fine there. This letter is all about my life here in the Caribbean where I am an indentured labour. Through this letter, I want to tell you about my hardship, the misbehaviour of the contractor towards me and how much I miss you all.

My life here is full of struggles and hardships, I did not choose all of this willingly. The contractor at the time of hiring me did not provide the correct information regarding place of work, mode of travel and living and working conditions.

We have only few legal rights to us. The contractor uses harsh and abusive language at the worksite. He treats us like animals. We don’t have any rights to speak or to express our dissatisfaction with the working conditions.

I am living a life of a slave and my wages are cut for unsatisfactory work.

Your Son,

Shayam

7. Explain the three types of movements or flows within international economic exchange. Find one example of each type of flow which involved India and Indians, and write a short account of it.

Ans:

• The nineteenth century brought about profound changes in the world across economic, political, social, cultural, and technological aspects.
• The factors interacted in complex ways to transform societies and reshape external relations during this period.
• Economists identify three types of movement or “flows” within international economic exchanges: trade, labour, and capital.
• The first is the flow of Trade primarily involved the exchange of goods such as cloth or wheat and played a significant role in the nineteenth-century economy.
• The second is the flow of labour refers to the migration of people in search of employment opportunities.
• The third is the movement of capital involved the transfer of funds for short-term or long-term investments over long distances.
• All three flows (trade, labour, and capital) were closely interconnected and affected on people’s lives during this era.
• The interconnections between these flows are sometimes be broken. Like labour migration, faced more restrictions compared to goods or capital flows.
• Examining the three flows together provides a better understanding of the nineteenth-century world economy and its dynamics.

8. Explain the causes of the Great Depression.

Ans:

• The depression was caused by a combination of factors, including agricultural overproduction and falling prices, leading to a surplus in the market.
• Many countries had financed their investments through loans from the US, but the withdrawal of US loans created a crisis as lenders panicked and reduced lending.
• The withdrawal of US loans affected different regions in various ways, such as bank failures, currency collapses in Europe, and a slump in agricultural and raw material prices in Latin America and other areas.
• The US banking system collapsed, with thousands of banks going bankrupt and closing, and numerous companies collapsing between 1929 and 1932.
• By 1935, modest economic recovery was underway in most industrial countries, but the wider effects of the Great Depression on society, politics, international relations, and people’s mindsets were long-lasting.

9. 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: the Developing countries are not benefiting from the rapid growth experienced by Western economies in the 1950s and 1960s, organized themselves as the Group of 77 (G-77) to demand a new international economic order (NIEO).

Reaction to the activities of the Bretton Woods twins

The G-77 can be seen as a reaction to the activities of the Bretton Woods twins, which refers to the International Monetary Fund (IMF) and the World Bank. The IMF and the World Bank were primarily designed to meet the financial needs of industrialized countries, and they were overburdened by poverty and a lack of resources, and their economies and societies were handicapped by long periods of colonial rule.

The G-77 emerged as a response to the perceived limitations of the Bretton Woods institutions in addressing the needs and aspirations of developing countries. As newly independent countries facing urgent pressures to lift their populations out of poverty, they came under the guidance of international agencies dominated by the former colonial powers. They felt that the IMF and the World Bank were not adequately addressing their concerns and demands for more development assistance, fairer prices for their raw materials, and better access to developed countries’ markets for their manufactured goods.

Therefore, the G-77 sought to promote a new international economic order (NIEO). By the 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.

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Additional question and answer

Multiple choice question and answer

1. What is used as currency?

1. Cowdi
2. Owdi
3. Dicow
4. None of these

Ans: Cowdi

2. What is one of the key aspects that has a long history with the global world?

1. Economic systems
2. Migration 
3. Technological

Ans: Migration

3. What is an example of vibrant pre-modern trade and culture?

1. Silk routes
2. Ridernpest
3. Transport

Ans: Silk routes

4. from where did gold and silver flow?

1. Africa to Asia
2. Asia to Europe
3. Europe to Asia

Ans: Europe to Asia

5. From where did Buddhism emerge?

1. Eastern India
2. Northern India
3. India

Ans: Eastern India

6. What were the primary silk routes used for?

1. Trading Chinese silk
2. Spreading Buddhism
3. Exchanging pottery
4. Exchanging textiles

Ans: Trading Chinese silk

7. Which of the following is an example of long-distance cultural exchange related to food?

1. Introducing new crops to different lands
2. The origins of spaghetti and noodles
3. Arab traders taking pasta to Sicily
4. Similar foods in India and Japan

Ans: The origins of spaghetti and noodles

8. Which foods are not known by ancestors?

1. Silk, groundnuts, maize, tomatoes, chillies, sweet potatoes,
2. Noodles, potatoes, soya, groundnuts, maize, tomatoes,
3. potatoes, soya, groundnuts, maize, tomatoes, chillies, sweet potatoes,

Ans: potatoes, soya, groundnuts, maize, tomatoes, chillies, sweet potatoes,

9. Who discovered the Americas?

1. Christo Columbus
2. Chrisopher Columbus
3. Christopher Columbus

Ans: Christopher Columbus

10. Who depends upon potatoes?

1. Ireland
2. America
3. Africa

Ans: Ireland

11. when did the potato crop destroyed?

1. In 1800
2. In mid-1840
3. 1n 1850

Ans: In mid-1840

12. Who was the first governor of the massachusetts bay colony?

1. John Winthorp
2. Christopher Columbus
3. Alfred Crosby

Ans: John Winthorp

13. When did pre-world shrink?

1. Eighteen century
2. Nineteen century
3. Sixteenth century

Ans: Sixteenth century

14. Which city is a fabled city of gold?

1. El Dorado
2. Peru
3. Mexico

Ans: El Dorado

15. Who did spread the smallpox diseases in America?

1. Peru
2. Mexico
3. Europe 

Ans: Europe

16. Which century witnessed profound changes in the world due to economic, political, social, cultural, and technological factors?

1. Eighteenth century
2. Nineteenth century
3. Twentieth century
4. Twenty-first century

Ans: Nineteenth century

17. What were the three types of movement or ‘flows’ within international economic exchanges identified by economists?

1. Trade flow, labour flow, and cultural flow
2. Goods flow, labour flow, and information flow
3. Trade flow, labour flow, and capital flow
4. Capital flow, cultural flow, and technology flow

Ans: Trade flow, labour flow, and capital flow

18. Which type of flow referred largely to the exchange of goods such as cloth or wheat in the nineteenth century?

1. Trade flow
2. Labor flow
3. Capital flow
4. Information flow

Ans: Trade flow

19. What does labour flow in the nineteenth century refer to?

1. Movement of goods across borders
2. Migration of people in search of employment
3. Transfer of technology and knowledge
4. Exchange of currencies and financial assets

Ans: Migration of people in search of employment

20. Which flow involves the movement of capital for short-term or long-term investments over long distances?

1. Trade flow
2. Labor flow
3. Capital flow
4. Cultural flow

Ans: Capital flow

21. Which of the three flows was often more restricted in terms of movement during the nineteenth century?

1. Trade flow
2. Labor flow
3. Capital flow
4. Cultural flow

Ans: Labor flow

22. Which century is being referred to when discussing the three flows in international economic exchanges?

1. Sixteenth century
2. Seventeenth century
3. Eighteenth century
4. Nineteenth century

Ans: Nineteenth century

23. How does considering the three flows together help in understanding the nineteenth-century world economy?

1. It provides insights into technological advancements only.
2. It helps analyze the impact of labour migration on trade and capital movements.
3. It emphasizes the importance of cultural exchanges in economic development.
4. It has no significant impact on understanding the world economy.

Ans: It helps analyze the impact of labour migration on trade and capital movements.

24. The government’s restriction on the import of corn in nineteenth-century Britain was enforced through:

1. The Navigation Acts
2. The Corn Laws
3. The Trade Embargo Act
4. The Agricultural Protection Act

Ans: The Corn Laws

25. The abolition of the Corn Laws in nineteenth-century Britain led to:

1. Increased food prices due to decreased import restrictions.
2. Higher living standards and reduced social conflict.
3. British agriculture being able to compete with imports.
4. Vast areas of land being left uncultivated.

Ans: British agriculture being able to compete with imports.

26. The abolition of the Corn Laws resulted in thousands of men and women being thrown out of work and led to:

1. Increased migration to rural areas for employment opportunities.
2. Decreased urbanization and industrial growth.
3. A rise in food consumption in Britain.
4. A decrease in demand for agricultural products.

Ans: A rise in food consumption in Britain.

27. To meet the increased demand for food in industrial Europe, which of the following activities were required?

1. Expansion of urban centers
2. Restriction of import laws
3. Development of railway networks and ports
4. Promotion of self-sufficiency in food production

Ans: Development of railway networks and ports

28. The migration of labour from places where it was in short supply, such as America and Australia, was primarily driven by:

1. Faster industrial growth in those regions
2. Higher wages and employment opportunities
3. Government-enforced labour policies
4. Cultural exchange and exploration

Ans: Higher wages and employment opportunities

29. Approximately how many people are estimated to have emigrated from Europe to America and Australia in the nineteenth century?

1. 5 million
2. 15 million
3. 50 million
4. 150 million

Ans: 50 million

30. The global agricultural economy that took shape by 1890 was characterized by:

1. Decreased dependence on imported food products
2. Limited changes in labor movement patterns and capital flows
3. Complex changes in technology and ecologies
4. Reduced specialization in the production of commodities

Ans: Complex changes in technology and ecologies

31. In west Punjab, the British Indian government built irrigation canals to:

1. Encourage self-sufficiency in food production
2. Transform semi-desert lands into fertile agricultural areas
3. Restrict the migration of peasants from other parts of Punjab
4. Increase the production of coal and minerals for export

Answer: Transform semi-desert lands into fertile agricultural areas

32. Between 1820 and 1914, world trade multiplied significantly, with nearly 60% of this trade comprising:

1. Industrial machinery and technology
2. Manufactured goods and textiles
3. Agricultural products and minerals
4. Luxury goods and spices

Ans: Agricultural products and minerals

33. In nineteenth-century Britain, self-sufficiency in food resulted in lower living standards and social conflict primarily because:

1. Population growth led to increased demand for food grains.
2. Urban centers expanded, increasing the demand for agricultural products.
3. The government restricted the import of corn through the Corn Laws.
4. British agriculture was unable to compete with cheaper imported food.

Answer: British agriculture was unable to compete with cheaper imported food.

34. The government’s restriction on the import of corn in nineteenth-century Britain was enforced through:

1. The Navigation Acts
2. The Corn Laws
3. The Trade Embargo Act
4. The Agricultural Protection Act

Ans: The Corn Laws

35. The abolition of the Corn Laws in nineteenth-century Britain led to:

1. Increased food prices due to decreased import restrictions.
2. Higher living standards and reduced social conflict.
3. British agriculture being able to compete with imports.
4. Vast areas of land being left uncultivated.

Ans: British agriculture being able to compete with imports.

36. The abolition of the Corn Laws resulted in thousands of men and women being thrown out of work and led to:

1. Increased migration to rural areas for employment opportunities.
2. Decreased urbanization and industrial growth.
3. A rise in food consumption in Britain.
4. A decrease in demand for agricultural products.

Ans: A rise in food consumption in Britain.

37. Prior to the development of refrigerated ships, the trade in meat from America to Europe involved:

1. Live animals being transported and slaughtered upon arrival
2. Frozen meat being transported and then thawed for consumption
3. Canned meat being shipped and distributed to European markets
4. Dried or salted meat being exported and rehydrated in Europe

Ans: Live animals being transported and slaughtered upon arrival

38. The introduction of refrigerated ships in the meat trade led to:

1. Increased shipping costs and higher meat prices in Europe
2. Expansion of livestock farming in Europe to meet demand
3. Lowered meat prices and increased availability in Europe
4. Decreased consumption of meat due to quality concerns

Ans: Lowered meat prices and increased availability in Europe

39. The use of refrigerated ships in the meat trade resulted in:

1. Reduced shipping costs and increased profitability for exporters
2. Improved living conditions and access to affordable meat for the European poor
3. Increased demand and production of meat in Europe
4. All of the above

Ans: All of the above

40. The advancements in transportation technology and the availability of perishable food products contributed to:

1. Economic growth and globalization
2. Reduced dependence on imported goods
3. Preservation of traditional food production methods
4. Limited impact on social and cultural changes

Ans: Economic growth and globalization

41. The impact of technological advancements in transportation extended beyond the meat trade and also influenced the movement of:

1. Capital and investments
2. Labor migration
3. Goods and commodities
4. All of the above

Ans: All of the above

42. Rinderpest, a devastating cattle disease, reached Africa in the late 1880s and spread rapidly across the continent due to:

1. Imported infected cattle from British Asia
2. Natural migration patterns of infected wildlife
3. Contaminated water sources
4. Airborne transmission

Ans: Imported infected cattle from British Asia

43. The scarcity of cattle resources caused by rinderpest enabled European colonizers to:

1. Strengthen their power and control over African populations
2. Establish a monopoly on cattle resources
3. Force Africans into the labor market
4. All of the above

Ans: All of the above

44. In the nineteenth century, hundreds of thousands of Indian and Chinese laborers migrated to work in which industries?

1. Agriculture
2. Manufacturing
3. Plantations, mines, and construction projects
4. Service sector

Ans: Plantations, mines, and construction projects

45. How were indentured workers recruited?

1. Through government agencies
2. Through voluntary applications
3. Through agents engaged by employers
4. Through community organizations

Ans: Through agents engaged by employers

46. Which cultural expressions emerged as a result of cultural fusion among indentured labour migrants?

1. Chutney music
2. Rastafarianism
3. Hosay festival
4. All of the above

Ans: All of the above

47. When was the system of indentured labour migration abolished?

1. 1850
2. 1900
3. 1921
4. 1950

Ans: 1921

48. Descendants of Indian indentured workers faced a sense of loss and alienation in the Caribbean islands, as depicted in the novels of which Nobel Prize-winning writer?

1. Rabindranath Tagore
2. Salman Rushdie
3. V.S. Naipaul
4. Arundhati Roy

Ans: V.S. Naipaul

49. Who were the Shikaripuri shroffs and Nattukottai Chettiars?

1. European colonizers
2. Indian bankers and traders
3. Indigenous peasants
4. African moneylenders

Ans: Indian bankers and traders

50. What role did the Shikaripuri shroffs and Nattukottai Chettiars play in agriculture?

1. They were farmers who grew crops for export.
2. They provided capital to finance export agriculture.
3. They were European plantation owners.
4. They transported agricultural goods to markets.

Ans: They provided capital to finance export agriculture.

51. How did Indian bankers transfer money over large distances?

1. Through barter trade
2. Using European banks exclusively
3. Through sophisticated money transfer systems
4. By relying on local moneylenders

Ans: Through sophisticated money transfer systems

52. What did Hyderabadi Sindhi traders establish in busy ports worldwide?

1. Plantations for growing cash crops
2. Indigenous forms of corporate organization
3. Emporia for selling local and imported curios
4. Banks to finance export agriculture

Ans: Emporia for selling local and imported curios

53. What contributed to the increase in the number of tourists visiting busy ports?

1. Development of safe and comfortable passenger vessels
2. Agricultural advancements
3. Expansion of European colonies
4. Establishment of local markets

Ans: Development of safe and comfortable passenger vessels

54. What led to the decline in the export of fine Indian cotton to Europe?

1. Industrialization in India
2. Tariffs imposed on cloth imports into Britain
3. Stiff competition from other international markets
4. Decreased demand for cotton textiles

Ans: Tariffs imposed on cloth imports into Britain

55. What became India’s single largest export for a period of time?

1. Fine cotton textiles
2. Raw cotton
3. Indigo dye
4. Opium

Ans: Opium

56. How did Britain finance its tea and other imports from China?

1. By exporting raw cotton
2. By exporting indigo dye
3. By exporting opium to China
4. By exporting fine Indian cotton textiles

Ans: By exporting opium to China

57. What was the trade relationship between Britain and India in the late nineteenth century?

1. India had a trade surplus with Britain.
2. Britain had a trade surplus with India.
3. The trade balance between Britain and India was equal.
4. There was no significant trade between Britain and India.

Ans: Britain had a trade surplus with India.

58. What did Britain use India’s trade surplus to pay for?

1. Private remittances home by British officials and traders
2. Interest payments on India’s external debt
3. Pensions of British officials in India
4. All of the above

Ans: All of the above

59. Which countries were part of the Allies during the First World War?

1. Germany, Austria-Hungary, Ottoman Turkey
2. Britain, France, Russia
3. United States, Germany, Ottoman Turkey
4. France, Russia, Ottoman Turkey

Ans: Britain, France, Russia

60. What was the impact of the war on the workforce in Europe?

1. It led to an increase in the able-bodied workforce.
2. It had no effect on household incomes.
3. It reduced the able-bodied workforce due to deaths and injuries.
4. It led to an increase in household incomes.

Ans: It reduced the able-bodied workforce due to deaths and injuries.

61. How did the war impact the economic links between major powers?

1. It strengthened economic links between major powers.
2. It had no impact on economic links between major powers.
3. It led to the snapping of economic links between major powers.
4. It resulted in the formation of new economic alliances.

Ans: It led to the snapping of economic links between major powers.

62. Which two countries developed industries during the war and posed competition to Britain after the war?

1. India and Japan
2. Canada and America
3. Australia and Japan
4. India and China

Ans: India and Japan

63. What happened to production and employment after the war boom ended?

1. Production increased, and unemployment decreased.
2. Production contracted, and unemployment increased.
3. Production remained stable, and unemployment remained unchanged.
4. Production and unemployment showed no significant changes.

Ans: Production contracted, and unemployment increased.

64. Which country’s agricultural economies were in crisis after the war?

1. Canada and America
2. Eastern Europe and China
3. Australia and Japan
4. India and China

Ans: Eastern Europe and China

65. Who pioneered the concept of mass production in the US?

1. Thomas Edison
2. Alexander Graham Bell
3. Henry Ford
4. Andrew Carnegie

Ans: Henry Ford

66. What was the key feature of the assembly line in Henry Ford’s car plant?

1. Individual craftsmanship
2. Slow and deliberate pace of work
3. Continuous repetition of a single task
4. Worker autonomy and control

Ans: Continuous repetition of a single task

67. How did Henry Ford deal with the high turnover of workers in his factory?

1. Doubling the daily wage
2. Implementing shorter working hours
3. Allowing trade unions to operate
4. Reducing the pace of work

Ans: Doubling the daily wage

68. What was the result of mass production in the US during the 1920s?

1. Decreased employment opportunities
2. Lower wages for workers
3. Increased availability and affordability of consumer goods
4. Slower production rates

Ans: Increased availability and affordability of consumer goods

69. What happened to the US economy by 1929?

1. It experienced unprecedented prosperity and growth.
2. It entered a severe depression.
3. It achieved complete economic self-sufficiency.
4. It became the world’s largest exporter of capital.

Ans: It entered a severe depression.

70. When did the Great Depression begin and end?

1. 1918-1923
2. 1924-1929
3. 1929-mid-1930s
4. mid-1930s-1940s

Ans: 1929-mid-1930s

71. Which regions and communities were particularly affected by the Great Depression?

1. Industrial areas and cities
2. Financial districts and banks
3. Agricultural regions and communities
4. Coastal regions and shipping industries

Ans: Agricultural regions and communities

72. How did the withdrawal of US loans affect the rest of the world during the Great Depression?

1. Strengthened currencies and boosted trade
2. Led to the failure of major banks and currency collapses
3. Increased investments and industrial production
4. Stimulated agricultural and raw material prices

Ans: Led to the failure of major banks and currency collapses

73. When did a modest economic recovery begin in most industrial countries after the Great Depression?

1. 1929
2. 1933
3. 1935
4. 1940

Ans: 1935

74. How did the Great Depression affect India’s trade?

1. India became a major exporter of manufactured goods.
2. India’s exports and imports increased significantly.
3. India’s exports and imports nearly halved.
4. India’s trade remained unaffected by the depression.

Ans: India’s exports and imports nearly halved.

75. Who among the Indian population suffered the most during the Great Depression?

1. Urban dwellers
2. Peasants and farmers
3. Middle-class salaried employees
4. Town-dwelling landowners

Ans: Peasants and farmers

76. Which industry in Bengal faced a significant decline in prices during the Great Depression?

1. Textile industry
2. Iron and steel industry
3. Jute industry
4. Tea industry

Ans: Jute industry

77. What was the main aim of the post-war international economic system established at the Bretton Woods conference?

1. Promote international trade and globalization.
2. Ensure economic stability and full employment.
3. Increase government intervention in the economy.
4. Establish a global currency.

Ans: Ensure economic stability and full employment.

78. Which institution was established to deal with external surpluses and deficits of member nations?

1. International Monetary Fund (IMF)
2. World Trade Organization (WTO)
3. United Nations (UN)
4. World Bank

Ans: International Monetary Fund (IMF)

79. What is the other name for the International Bank for Reconstruction and Development?

1. United Nations Development Programme (UNDP)
2. World Trade Organization (WTO)
3. International Monetary Fund (IMF)
4. World Bank

Ans: World Bank

80. Which country has an effective right of veto over key IMF and World Bank decisions?

1. United States
2. United Kingdom
3. Germany
4. China

Ans: United States

81. What was the basis of the Bretton Woods system?

1. Floating exchange rates
2. Variable exchange rates
3. Fixed exchange rates
4. Gold standard

Ans: Fixed exchange rates

82. In the Bretton Woods system, to what was the US dollar anchored?

1. Euro
2. Japanese yen
3. Gold
4. Indian rupee

Ans: Gold

83. What was the average annual growth rate of world trade between 1950 and 1970?

1. Less than 2%
2. Around 5%
3. Over 8%
4. Over 10%

Ans: Over 8%

84.What was the average annual income growth rate during the same period?

1. Less than 2%
2. Around 5%
3. Over 8%
4. Over 10%

Ans: Around 5%

85. What was the average unemployment rate in most industrial countries during the period of stable growth?

1. Less than 1%
2. Around 3%
3. Around 5%
4. Over 8%

Ans: Around 5%

86. Which countries dominated the international agencies like the IMF and the World Bank?

1. Former colonial powers.
2. Newly independent nations.
3. Developing countries.
4. Global corporations.

Ans: Former colonial powers.

87. What did developing countries demand through the Group of 77 (G-77)?

1. Control over Western economies.
2. Financial assistance for rebuilding.
3. Fair trade and market access.
4. Exploitation of natural resources.

Ans: Fair trade and market access.

88. What did developing countries seek to achieve through the New International Economic Order (NIEO)?

1. Real control over their natural resources.
2. Financial dominance over the IMF and World Bank.
3. Development assistance from former colonial powers.
4. Economic dependency on powerful nations.

Ans: Real control over their natural resources.

89. Why have countries like China become attractive destinations for investment by foreign MNCs?

1. Advanced technology infrastructure.
2. High wages and labour costs.
3. Rapid economic transformation.
4. Dependency on international financial assistance.

Ans: Rapid economic transformation.

Short answer type question

90. What do you mean by globalisation?

Ans: ‘globalisation’ we often refer to an economic system that has emerged in the last 50 years or so.

91. What is silk routes?

Ans: The name “silk routes” emphasizes the significance of Chinese silk cargoes traveling westward along the routes.

92. How did Ireland destroy due to food?

Ans: The introduction of new crops, such as potatoes, improved the diet and lifespan of Europe’s poor. Ireland was strongly dependent on potatoes that when the crop was destroyed by disease in the mid-1840s, hundreds of thousands of people died of starvation.

93. How did the pre-modern world shrink?

Ans: European sailors in the sixteenth century found sea routes to Asia and America, which led to the shrinking of the pre-modern world.

94. What advantage did European conquerors have over America’s original inhabitants?

Ans: European conquerors had immunity to diseases like smallpox, to which the original inhabitants had no immunity, leading to devastating epidemics.

95. What were the three types of flows in international economic exchanges during the nineteenth century?

Answer: The three types of flows in international economic exchanges during the nineteenth century were a trade in goods, migration of people in search of employment (labour migration), and the movement of capital for investments.

96. What are Corn-laws?

Ans: As urban centers expanded and industry grew, the demand for agricultural products went up, pushing up food grain prices. Under pressure from landed groups, the government also restricted the import of corn. The laws allowing the government to do this were commonly known as the ‘Corn Laws’.

97. How did refrigerators help in shipping slaughter?

Ans: The development of refrigerated ships enabled the transport of perishable foods over long distances. With the introduction of refrigerated ships, animals could be slaughtered at the starting point (e.g., America, Australia, or New Zealand) and then transported as frozen meat to Europe. This innovation reduced shipping costs and made meat more affordable in Europe, benefiting the European poor.

98. What impact did the disease of Rinderpest have on Africa in the 1890s?

Ans: The disease of rinderpest had a devastating impact on Africa in the 1890s, causing significant consequences for people’s livelihoods and the local economy.

99. What were the main destinations for Indian indentured migrants in the nineteenth century?

Ans: The main destinations for Indian indentured migrants in the nineteenth century were the Caribbean islands.

100. How were indentured workers recruited in the nineteenth century?

Ans: Indentured workers were recruited in the nineteenth century through agents who often provided false information and, in some cases, resorted to forceful abduction.

101. How were the living and working conditions for indentured workers in the nineteenth century?

Ans: The living and working conditions for indentured workers in the nineteenth century were harsh, leading to the comparison of indentured labour as a “new system of slavery.” Workers faced challenging circumstances, limited legal rights, and difficult working conditions.

102. Which cultural influences did Indian migrants have in the Caribbean?

Ans: Indian migrants had significant cultural influences in the Caribbean, including the transformation of the Muharram procession into the riotous carnival called “Hosay,” the development of Rastafarianism, and the contribution to Chutney music.

103. How did the export of raw cotton from India change between 1812 and 1871?

Ans: The export of raw cotton from India increased substantially between 1812 and 1871, rising from 5% to 35% during this period.

104. What was the significance of opium shipments from India to China during the nineteenth century?

Ans: Opium shipments from India to China experienced rapid growth from the 1820s, becoming India’s single largest export for a period of time.

105. Between whom did first world war happened?

Ans: The First World War was fought between the Allies (Britain, France, Russia, later joined by the US) and the Central Powers (Germany, Austria-Hungary, Ottoman Turkey). The war began in August 1914 and lasted more than four years.

106. Who pioneered assembly line methods in car manufacturing in the 1920s?

Ans: Henry Ford was a pioneer in implementing assembly line methods in car manufacturing during the 1920s.

107. How did Ford’s assembly line method impact car production?

Ans: Ford’s assembly line method allowed for faster and cheaper production of vehicles, increasing output per worker and contributing to the growth of the automobile industry.

108. What measures did Henry Ford take to address the challenges faced by workers on the assembly line?

Ans: To address the challenges faced by workers on the assembly line, Henry Ford doubled the daily wage to $5 in 1914. However, he also banned trade unions, which led to some controversy and criticism.

109. What was the cause of depression?

Ans: The depression was caused by a combination of factors, including agricultural overproduction and falling prices, leading to a surplus in the market.

110. Which countries were part of the Axis powers during the Second World War?

Ans: The Axis powers during the Second World War included Nazi Germany, Japan, and Italy.

111. How long did the Second World War last?

Ans: The Second World War lasted for six years.

112. When and where was the Bretton Woods conference held?

Ans: The Bretton Woods conference was held in July 1944 in Bretton Woods, New Hampshire, USA.

113. What institutions were created at the Bretton Woods conference?

Ans: The Bretton Woods conference resulted in the creation of the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank).

114. What was the result of Bretton Woods System?

Ans: The Bretton Woods system resulted in a remarkable period of trade and income growth for Western industrial nations and Japan. Between 1950 and 1970, world trade experienced an annual growth rate of over 8%, while incomes grew at nearly 5%.

115. What challenges did newly independent nations in Asia and Africa face after World War II?

Ans: Newly independent nations in Asia and Africa faced challenges such as poverty, lack of resources, and the legacy of colonial rule.

116. Why were the IMF and the World Bank ill-equipped to address the development challenges of former colonies?

Ans: The IMF and the World Bank were initially designed to address the financial needs of industrial countries, and therefore, they were not adequately equipped to address the specific development challenges faced by former colonies.

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Long answer type question

117. How did silk routes link the world?

Ans: The silk routes were an example of vibrant trade and cultural links between distant parts of the pre-modern world. The name “silk routes” emphasizes the significance of Chinese silk cargoes traveling westward along the routes. Historians have identified multiple silk routes, both over land and by sea, connecting vast regions of Asia and linking Asia with Europe and northern Africa. These routes existed before the Christian Era and thrived until the fifteenth century.

118. How did human societies interlink from ancient times?

Ans: Human societies are interlinked from ancient times by travellers, traders, priests, and pilgrims travelled vast distances for knowledge, opportunity, and spiritual fulfillment, or to escape persecution. They also carried goods, money, values, skills, ideas, inventions, and even germs and diseases.

119. How did foods travelled all over the world in pre-modern world?

Ans: Food has been an example and medium for long-distance cultural exchange. Traders and travellers introduced new crops to the lands they visited, leading to the spread of foodstuffs. Noodles have travelled from China to become spaghetti or were taken to Sicily by Arab traders in the fifth century. Similar foods were known in India and Japan, indicating the possibilities of long-distance cultural contact in the pre-modern world. These foods were introduced to Europe and Asia after Christopher Columbus discovered the Americas. Many of these foods originated from the American Indians, the original inhabitants of the Americas.

120. How did the Indian Ocean help Europe?

Ans: The Indian subcontinent played a central role in these trade networks. European sailors redirected and expanded some of these trade flows towards Europe after their entry into the Indian Ocean. America, before its “discovery,” had been cut off from the rest of the world for millions of years.

121. What were the factors that prompted European migration to America in the eighteenth century?

Ans: Europe faced various challenges until the nineteenth century, including poverty, hunger, overcrowded cities, deadly diseases, and religious conflicts. These unfavorable conditions prompted thousands of Europeans to migrate to America, seeking a better life and escape from these hardships. America offered vast lands and opportunities for settlers to establish themselves. Additionally, the development of plantations in America, particularly those worked by African slaves, produced valuable commodities like cotton and sugar for European markets. This economic potential further attracted European migrants to America in the eighteenth century.

122. How did the shift in world trade impact the role of China and the emergence of Europe?

Ans: China and India were among the world’s richest countries until the fifteenth century, actively engaging in trade with various regions. However, China gradually restricted overseas contacts and withdrew into isolation, reducing its role in global trade. At the same time, the discovery and exploration of the Americas brought about a shift in the center of world trade. America’s vast resources, including crops and minerals, gained increasing importance in global trade. Europe, benefiting from the wealth brought by the Americas and its expanding trade networks, emerged as the new center of world trade. The rising significance of Europe and the decline of China marked a significant shift in the dynamics of global trade during this period.

123. How did the three types of flows in international economic exchanges during the nineteenth-century shape societies and external relations?

Ans:

• The nineteenth century brought about profound changes in the world across economic, political, social, cultural, and technological aspects.
• The factors interacted in complex ways to transform societies and reshape external relations during this period.
• Economists identify three types of movement or “flows” within international economic exchanges: trade, labour, and capital.
• The first is the flow of Trade primarily involved the exchange of goods such as cloth or wheat and played a significant role in the nineteenth-century economy.
• The second is the flow of labour refers to the migration of people in search of employment opportunities.
• The third is the movement of capital involved the transfer of funds for short-term or long-term investments over long distances.
• All three flows (trade, labour, and capital) were closely interconnected and affected on people’s lives during this era.
• The interconnections between these flows are sometimes be broken. Like labour migration, faced more restrictions compared to goods or capital flows.
• Examining the three flows together provides a better understanding of the nineteenth-century world economy and its dynamics.

124. How did the scrapping of the Corn Laws in nineteenth-century Britain impact food production, employment, and migration?

Ans:

• In nineteenth-century industrial Britain, self-sufficiency in food led to lower living standards and social conflict.
• Population growth increased the demand for food grains in Britain, and driven by urban expansion and industrial growth.
• The government was under pressure from landed groups, restricted the import of corn through laws known as the ‘Corn Laws.’
• The abolition of the Corn Laws was demanded by industrialists and urban dwellers due to high food prices.
• The scrapping of the Corn Laws led to cheaper food imports, making it difficult for British agriculture to compete.
• Uncultivated lands increased, and many workers became unemployed, leading to migration to cities or overseas.

125. What was the role of technology in nineteenth century?

Ans:

• Technological advancements played a crucial role in the transformation of the nineteenth-century world.
• The railways, steamships, and the telegraph were important inventions without which we cannot imagine the transformed nineteenth-century world.
• Technological progress was often influenced by larger social, political, and economic factors.
• Colonization stimulated investments and improvements in transportation like faster railways, lighter wagons, and larger ships.
• These advancements in transport facilitated the movement of food more cheaply and quickly from distant farms to final markets.

126. How did the expanding trade and closer relationship with the world economy in the late nineteenth century impact societies, particularly in relation to European colonization?

Ans:

• Trade flourished and markets expanded in the late nineteenth century.
• This period also had a darker side, as the process of expanding trade and closer relationship with the world economy resulted in the loss of freedoms and livelihoods for many societies.
• European conquests produce painful economic, social, and ecological changes in the colonized societies.
• In 1885, European powers met in Berlin to complete the carving up of Africa between them, resulting in Britain, France, Belgium, and Germany acquiring vast overseas territories.
• The United States also became a colonial power in the late 1890s by taking over some colonies previously held by Spain.

127. How did the system of indentured labour in the nineteenth century impact Indian migrants and their descendants?

Ans:

• In the nineteenth century, hundreds of thousands of Indian and Chinese labourers went to work on plantations, in mines, and in road and railway construction projects around the world.
• Indentured workers from India primarily came from regions such as eastern Uttar Pradesh, Bihar, central India, and dry districts of Tamil Nadu, where factors like declining cottage industries, rising land rents, and land clearance for mines and plantations affected the lives of the poor.
• The main destinations of Indian indentured migrants were the Caribbean islands (mainly Trinidad, Guyana and Surinam), Mauritius and Fiji. Closer home, Tamil migrants went to Ceylon and Malaya.
• Recruitment of indentured workers was hired by agents, who often provided false information and sometimes resorted to forceful abduction.
• Indentured labour has been likened to a “new system of slavery” due to the harsh living and working conditions and the limited legal rights of the workers.

128. How did Indian Entrepreneurs help agriculture in Central and Southeast Asia?

Ans:

• Indian bankers, such as the Shikaripuri shroffs and Nattukottai Chettiars, played an important role in financing export agriculture in Central and Southeast Asia.
• They use their own funds or borrowed from European banks.
• They had a sophisticated system to transfer money over large distances and even developed indigenous forms of corporate organisation.
• Indian traders and moneylenders expanded their activities into Africa, following European colonizers.
• Hyderabadi Sindhi traders, in particular, established successful emporia in busy ports worldwide from the 1860s onwards.
• These traders catered to the growing numbers of tourists, who could travel safely and comfortably on passenger vessels, by selling local and imported curios.

129. How did the trade relationship between Britain and India impact their respective economies during the nineteenth century?

Ans: The trade relationship between Britain and India during the nineteenth century had significant impacts on their respective economies. Initially, fine cottons from India were exported to Europe, but with the expansion of British cotton manufacturing during industrialization, the British government imposed tariffs and restrictions on cotton imports to protect local industries. This resulted in a decline in the flow of Indian cotton to Britain and increased competition for Indian textiles in other international markets.

As a consequence, British manufacturers flooded the Indian market, creating a trade surplus for Britain and a trade deficit for India. The export share of cotton textiles from India to Britain decreased from around 30% in 1800 to less than 3% by the 1870s. However, the export of raw cotton from India experienced a significant increase, rising from 5% to 35% between 1812 and 1871.

130. What was the impact of first world war?

Ans:

• The war caused massive death and destruction with approximately 9 million deaths and 20 million injuries. This reduced the able-bodied workforce in Europe and affected household incomes.
• Industries were restructured to produce war-related goods, and societies have undertaken the changes as women took on jobs traditionally performed by men.
• The war disrupted economic links between major powers. This lead to Britain borrowing large sums of money from US banks and the US public.
• The war transformed the US from an international debtor to an international creditor, as it accumulated more overseas assets than foreign governments and citizens owned in the US.

131. What happened after first world War?

Ans:

• Post-World War I, Britain faced a prolonged crisis and struggled to regain its pre-war economic dominance.
• After the war Britain found it difficult to recapture its earlier position of dominance in the Indian market, and to compete with Japan internationally.
• Britain had borrowed liberally from the US to finance war expenditures.
• The war had led to an economic boom which increase in demand, production and employment.
• The government reduced war expenditures to peacetime revenues and  leading to job losses and high unemployment rates, with one in every five British workers out of work in 1921.
• Agricultural economies including wheat producers were also in crisis.

132. How did mass production and consumer demand contribute to the prosperity of the US in the 1920s?

Ans:

• The US get a quicker economic recovery compared to other countries after War.
• Mass production became a characteristic feature of the US economy in the 1920s, with Henry Ford being a pioneer in implementing assembly line methods in car manufacturing.
• Ford’s assembly line allowed for faster and cheaper production of vehicles, increasing output per worker.
• Workers struggled with the stress of assembly line work, leading to high turnover rates. Ford doubling the daily wage to $5 in 1914 and banning trade unions.
• Fordist industrial practices, including mass production, spread in the US and were adopted in Europe in the 1920s.
• Mass production lowered the costs and prices of goods, making them more affordable for a larger number of consumers.
• The demand for consumer goods, such as cars, refrigerators, washing machines, radios, and gramophone players, increased, supported by a system of hire purchase and loans.
• The housing and consumer boom in the 1920s higher employment, income, consumption, and investment.

133. What was the impact of great depression on India?

Ans:

• The Great Depression had an impact on India, the interconnectedness of the global economy in the early twentieth century.
• India’s exports and imports were nearly halving between 1928 and 1934, as international prices crashed.
• Agricultural prices in India also plunged, with wheat prices falling by 50% between 1928 and 1934.
• Peasants and farmers suffered the most, the colonial government maintained high revenue demands.
• Jute producers in Bengal, who relied on exports of processed jute, experienced a significant decline in prices, with raw jute prices crashing by over 60%.
• Peasants borrowed money and fell deeper into debt as they struggled to cope with lower prices and increased production costs.
• Rural India faced widespread unrest during the depression, and Mahatma Gandhi launched the civil disobedience movement in 1931.
• Industrial investment in India grew as the government introduced tariff protection for industries under nationalist pressure.

134. What were the major consequences of the Second World War?

Ans:

• The Second World War broke out approximately 2 decades after the end of the First World War and involved the Axis powers (Nazi Germany, Japan, Italy) and the Allies (Britain, France, Soviet Union, US).
• The war lasted for six years and was fought on multiple fronts, including land, sea, and air.
• The death and destruction caused by the war were immense, with an estimated 60 million people, or about 3% of the world’s 1939 population, believed to have been killed directly or indirectly.
• Unlike earlier wars, Many more civilians than soldiers died from war-related causes.
• Europe and Asia were devastated and many cities destroyed by aerial bombardment and artillery attacks.
• The war caused an immense amount of economic devastation and social disruption.
• Two crucial influences on post-war reconstruction were the emergence of the United States as the dominant economic, political, and military power in the Western world and the dominance of the Soviet Union.
• The Soviet Union had made sacrifices to defeat Nazi Germany and had transformed from a backward agricultural country into a world power during the years of the Great Depression when much of the capitalist world was struggling.

135. What was the basis of the international monetary system established under the Bretton Woods system?

Ans:

• The international monetary system, which connects national currencies and monetary systems, was based on fixed exchange rates under the Bretton Woods system.
• In this system, national currencies were pegged to the US dollar at a fixed exchange rate, and the dollar was tied to gold at a fixed price of $35 per ounce.

136. What was the aim of the post-war international economic system established at the Bretton Woods conference?

Ans: The post-war international economic system aimed to preserve economic stability and full employment in the industrialized world. It focused on addressing external surpluses and deficits of member nations through the establishment of the IMF. Additionally, the World Bank was created to provide financing for post-war reconstruction efforts.

137. How did the international agencies, such as the IMF and the World Bank, come to guide the newly independent countries despite being dominated by their former colonial powers?

Ans: The newly independent countries, striving to alleviate poverty and develop their economies, came under the guidance of international agencies like the IMF and the World Bank. However, these institutions were dominated by their former colonial powers. This irony emerged as a result of the historical power dynamics and influence retained by the former colonial powers even after the independence of these nations.

138. What were the demands of developing countries as they organized themselves as the Group of 77 (G-77) and aimed for a new international economic order (NIEO)?

Ans: Developing countries, not benefiting from the rapid growth experienced by Western economies in the 1950s and 1960s, organized themselves as the Group of 77 (G-77) to demand a new international economic order (NIEO). The NIEO aimed to grant developing countries greater control over their natural resources, increased development assistance, fairer prices for raw materials, and improved access to developed countries’ markets for their manufactured goods.

139. How did the relocation of industries to low-wage countries, particularly China, contribute to the transformation of the world’s economic geography?

Ans:

• Unemployment rose in the industrial world from the mid-1970s until the early 1990s.
• Multinational corporations (MNCs) began shifting production operations to low-wage Asian countries, contributing to the transformation of the world’s economic geography.
• China had been isolated from the post-war world economy since its revolution in 1949, implemented new economic policies and opened up to international trade, attracting investment from foreign MNCs due to its low-cost structure and low wages.
• The relocation of industries to low-wage countries, particularly China, stimulated world trade and capital flows.
• Over the past two decades, countries such as India, China, and Brazil have undergone rapid economic transformation.

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