📘 Class 12 Geography | Chapter 8
International Trade
🔹 1. Introduction & Importance
International trade is the process under which the import and export of goods and services take place between different countries. It is the basis of any country's economy, foreign exchange earnings, and global relations.
Importance:
- Increase in National Income
- Earnings of Foreign Exchange
- Optimal utilization of resources
- International cooperation
- Improvement in standard of living
🔹 2. Types of Trade & Balance
Types of International Trade:
- Import Trade: Buying goods from foreign countries.
- Export Trade: Selling goods to foreign countries.
- Entrepot Trade: Re-exporting goods that have been imported from other countries.
Balance of Trade (BOT):
The difference between a country's exports and imports is called the Balance of Trade.
- Favorable Balance of Trade: Export > Import
- Unfavorable Balance of Trade: Import > Export
India's balance of trade is generally unfavorable because its imports exceed its exports.
🔹 3. India's International Trade
Major Export Items of India:
Petroleum products, Gems and Jewelry, Textiles (Cotton, Silk), Agricultural products (Tea, Coffee, Spices), Engineering goods.
Major Import Items of India:
Crude Petroleum, Gold, Machinery, Fertilizers, Electronic goods.
Major Trading Partners:
USA, China, UAE, Russia, Japan.
🗺️ 4. Ports and Map Work
Sea ports are the main basis of international trade and are often called the "Gateways of International Trade."
Major Sea Ports of India:
- Mumbai (West Coast - Largest port)
- Kandla / Deendayal (Gujarat)
- Cochin (Kerala)
- Chennai (Tamil Nadu - Oldest artificial port)
- Visakhapatnam (Andhra Pradesh - Deepest landlocked port)
- Kolkata (West Bengal - Riverine port)
⭐ Useful Exam Q&A
Q1. Define International Trade.
Ans: The process of importing and exporting goods and services between different countries is called international trade.
Q2. What do you understand by Balance of Trade?
Ans: The difference between the value of exports and imports of a country is called the Balance of Trade.
Q3. Write two major export items of India.
Ans: Petroleum products, Gems and Jewelry.
Q4. What is the status of India's Balance of Trade and why?
Ans: India's balance of trade is generally unfavorable because its imports are greater than its exports.
🔥 Important 20 MCQs
Q1. What is the meaning of International Trade?
A. Trade within the country | B. Trade between states | C. Import-export between countries | D. Export only
Ans: C
Q2. Which of the following is a major benefit of international trade?
A. Population growth | B. Foreign exchange earnings | C. Land degradation | D. Pollution
Ans: B
Q3. What is the correct meaning of Import?
A. Export of goods | B. Production within country | C. Buying goods from abroad | D. Storage of goods
Ans: C
Q4. Export refers to—
A. Bringing goods from abroad | B. Sending goods to foreign countries | C. Storage of goods | D. Domestic trade
Ans: B
Q5. What is the formula for Balance of Trade?
A. Import + Export | B. Import – Export | C. Export – Import | D. Production – Consumption
Ans: C
Q6. When imports are more than exports, the balance of trade is:
A. Favorable | B. Balanced | C. Unfavorable | D. Positive
Ans: C
Q7. How is India's Balance of Trade generally?
A. Favorable | B. Balanced | C. Unfavorable | D. Zero
Ans: C
Q8. Which of the following is a major export item of India?
A. Crude petroleum | B. Gold | C. Gems and Jewelry | D. Fertilizer
Ans: C
Q9. Which item is included in India's major imports?
A. Tea | B. Textiles | C. Engineering goods | D. Crude Petroleum
Ans: D
Q10. What does Entrepot Trade mean?
A. Export only | B. Import only | C. Import and then re-export | D. Domestic trade
Ans: C
Q11. Which country is a major trading partner of India?
A. Nepal | B. Bhutan | C. USA | D. Myanmar
Ans: C
Q12. What is the significance of ports in international trade?
A. Agricultural growth | B. Industrial production | C. Basis of maritime trade | D. Population control
Ans: C
Q13. Which of the following is a major Indian sea port?
A. Agra | B. Bhopal | C. Cochin | D. Patna
Ans: C
Q14. On which river is Kolkata port situated?
A. Ganga | B. Hugli | C. Yamuna | D. Brahmaputra
Ans: B
Q15. On which coast is Mumbai port situated?
A. East Coast | B. West Coast | C. North Coast | D. South Coast
Ans: B
Q16. What is the main effect of globalization?
A. Isolation between countries | B. Increase in economic interdependence | C. Decrease in trade | D. Fall in production
Ans: B
Q17. Which factor affects international trade the most?
A. Language | B. Availability of resources | C. Religion | D. Culture
Ans: B
Q18. Which region is a major hub of world trade?
A. Antarctica | B. Africa | C. Europe | D. Polar regions
Ans: C
Q19. Which Indian port is also known as 'Deendayal' port?
A. Mumbai | B. Chennai | C. Kandla | D. Cochin
Ans: C
Q20. International trade leads to an increase in—
A. Regional disparity | B. Foreign exchange reserves | C. Pollution | D. Population
Ans: B
📝 Board Exam Tips (2026)
- For 3/5 mark answers, always provide definitions followed by examples.
- In map work, it is mandatory to show the correct side of the coast (West or East).
- Memorize the Balance of Trade formula as it is frequently asked in MCQs and short answers.
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