Question 9 of 46beginner💡 UnderstandShort Answer2 marks

What was the main channel connecting countries in the past? How is it different now?

Correct Answer

In the past, trade was the main channel connecting distant countries. Until the middle of the twentieth century, what crossed the boundaries of countries were raw materials, food stuff, and finished products. Colonies like India exported raw materials and imported finished goods.

Now, the situation is different with the emergence of multinational corporations (MNCs). MNCs play a major role in the globalisation process, connecting countries through the movement of goods, services, investments, and technology. This has led to greater integration of production and markets across countries, making regions of the world in closer contact than a few decades back.

Exercise: LET'S WORK THESE OUT | Q: 1 | (Page Page 8)
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Explanation

The textbook clearly states in the 'Production Across Countries' section that 'Trade was the main channel connecting distant countries' before MNCs emerged. The difference now is that globalisation involves multiple channels - not just trade, but also foreign investment, movement of technology, services, and the role of MNCs in integrating production and markets across countries.

Solution Steps

  1. Step 1: Identify from context that 'Trade was the main channel connecting distant countries' in the past.

  2. Step 2: Note that this was before MNCs emerged on the scene.

  3. Step 3: Explain the present scenario where MNCs connect countries through goods, services, investments, and technology, leading to greater integration.

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