Key Concepts
- 1What were the three types of flows within international economic exchanges?
Important Formulas & Facts
Three flows of trade identified by economists: (1) Flow of Trade — goods (cloth, wheat, machines) between countries. (2) Flow of Labour — migration of people for work (Indians to Africa, Chinese to America). (3) Flow of Capital — investment of money in foreign countries for short/long term returns. Before 1914, all three flows were relatively free. After WWI and Great Depression, barriers increased.
Must-Know Questions
Q1The Silk Route is an example of:
The Silk Route was an ancient network of trade routes connecting Asia with Europe. It is an example of pre-modern trade and cultural links that connected distant parts of the world.
Q2Which disease had a devastating effect on the indigenous people of the Americas?
Smallpox, carried by European settlers, killed millions of indigenous people in the Americas who had no immunity to the disease. It proved even deadlier than European military power.
Q3The Corn Laws in Britain were abolished because:
The Corn Laws were abolished in 1846 because industrialists and urban dwellers pressurised the government. These laws restricted the import of corn, keeping food prices high, which benefited landowners but hurt the working class and industrialists.
Q4Indentured labour was a system of:
Indentured labour was a system where workers were bonded by a contract to work for an employer for a specific period of time in exchange for passage to a new country. Many Indians were sent to Caribbean, Fiji, Mauritius, and Ceylon.
Q5The Bretton Woods institutions are:
The Bretton Woods Conference (1944) established the International Monetary Fund (IMF) and the World Bank (International Bank for Reconstruction and Development). These institutions were created to preserve economic stability and facilitate post-war reconstruction.
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