Question

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

Answer 1

Instructions:

• Mention the three types of economic exchanges.
• Detail the type of flow with an example related to India.

Solution:

The three types of movements or flows within the international economic exchange include the flow of goods, the flow of labour, and the flow of capital.

1. Flow of trade: The flow of trade can be explained as the trade in goods such as cloth and raw materials. For example, India produced fine cotton, indigo, and other raw materials which were exported to Europe. Similarly, European goods were imported to India.
2. Flow of labour: It refers to the migration of people in search of employment. Several Indian indentured labourers from various regions migrated across the world. They worked in mines, plantations, and construction projects in Caribbean islands, Mauritius, Fiji, etc.
3. Flow of capital: It includes the movement of short-term or long-term investments across the world. Shikaripuri shroffs and Nattukottai Chettiars were among the many groups of bankers and traders who financed agriculture in Central and Southeast Asia.