NCERT Solutions for Class 10 History Chapter 3 The Making of A Global World – Important Questions
Given in this post is NCERT Solutions for Class 10 History Chapter 3 The Making of A Global World. The important questions we have compiled will help the students to brush up on their knowledge about the subject. Students can practice Class 10 Social Science important questions to understand the subject better and improve their performance in the board exam. The NCERT solutions provided here will also give students an idea about how to write the answers.
- The Making of A Global World Multiple Choice Questions
- The Making of A Global World Very Short Answer Type
- The Making of A Global World Source Based Questions
- The Making of A Global World Short Answer Type
- The Making of A Global World Long answer type questions
Multiple Choice Questions ( 1 mark each )
- “Globalisation” refers to an economic system that emerged in the last ___ years or so.
Ans- C. 50
- Foods like soya, potato were introduced in Asia from __________
- The Mediterranean
- The Americas
Ans- C. the Americas
- The poor in England were able to eat better and live longer with the introduction of the humble _________
Ans- A. Potato
- Cowries, an early form of currency, were actually
- Iron coins
Ans- B. seashells
- What was the most powerful weapon used by Spanish conquerors?
- Germs of contagious diseases
Ans- C. Germs of contagious diseases
- The name ‘silk routes’ points to the importance of
- Silk sarees
- West-bound Chinese silk cargoes
- Indian silk
Ans- C. West – bound Chinese silk cargoes
- Along the silk route, precious metals- gold and silver- flowed from which part of the world?
- Indian subcontinent
- Northern parts of Africa
Ans- C. Europe
- Who accidentally discovered the Americas?
- Vasco da Gama
- Napoleon Bonaparte
- Christopher Columbus
Ans- C. Christopher Columbus
- Marco Polo’s book – “the travels of Marco Polo” is also known as:
- The book of marvels of the world
- Ta tang his Yu chi
- Si Yu ki
- Fo kwo ki
Ans- A. the book of marvels of the world
- What was the name of the 17th century’s ‘Fabled City of Gold’?
- El dorado
Ans- B. El Dorado
- Which of the following is not one of the three identified flows within international economic relations in the nineteenth century?
Ans- B. knowledge
- The laws that allowed the British government to restrict the import of corn were known as
- Country laws
- Economic laws
- Agri laws
- Corn laws
Ans- D. corn laws
- Which of these are the reasons for the movement of the world trade centre westwards?
- Self-isolation by China
- Rising importance of Americas
- Riches of India and China
- Both A and B
Ans- D. both A and B
- The canal colonies were __________ of western Punjab
- Irrigated lands
- Canal settlements
- Acquired canals
- Agricultural lands
Ans- A. irrigated lands
- Which of the following is not an important invention of the nineteenth century?
Ans- D. radio
- The invention of the refrigerator led to
- Reduced shipping costs
- Lowered meat prices in Europe
- Both A and B
Ans- C. both A and B
- The big European powers met in _____, in Berlin to carve up Africa among them
Ans- A. 1885
- Another name for the contagious cattle plague disease in 1890s Africa is-
Ans- B. Rinderpest
- What was the unexpected problem faced by Europeans willing to set up mines and plantations in South Africa?
- Shortage of livestock
- Shortage of labour
- Shortage of minerals and land
- Resistance of locals
Ans- B. shortage of labour
- Which disease spread like wildfire in Africa in the 1890s?
- Cattle plague
- All of the above
Ans- A. cattle plague
- Which one was not a measure taken by the employers to recruit and retain labour?
- Imposition of heavy taxes
- Changes in inheritance laws
- Mineworkers were confined
- Rinderpest was spread
Ans- D. Rinderpest was spread
- When did rinderpest arrive in Africa?
Ans- A. 1890s
- What were the consequences of the loss of cattle through rinderpest
- Colonial monopoly on remaining resources
- Colonisation of Africa
- Africans being forced into labour market
- All of the above
Ans-D. all of the above
- What is ‘a contracts- bonded labourer working for a time period to pay for his passage back home’ called?
- Indentured labourer
Ans- A. indentured labourer
- Which one of the following is NOT a Caribbean Island?
Ans- D. Ceylon
- When was the system of indentured labour migration abolished?
Ans- A. 1921
- Chose the names of Indian bankers in 19th century
- Shikaripuri shroffs
- Nattukottai chettiars
- Hyderabadi sindhi traders
- All of the above
Ans- D. all of the above
- Which one is a descendant of Indian indentured labourers and a Nobel prize winning author?
- Shivnarine Chandra Paul
- V. S. Naipaul
- Ramnaresh Sarwan
- None of these
Ans- B. V.S. Naipaul
- In __________ the annual Muharram procession was transformed into “hosay”
Ans- A. Trinidad
- Which of these is a creative expression of the post-indenture experience
- Chutney music
- All of the above
Ans- D. all of the above
- What were the descendants of Indian indentured labourers thought of as? (Choose the most appropriate option)
- Illegal migrants
Ans- D. coolies
- Which of these was not a part of “home charges”?
- Private remittances home
- Interest payments on India’s external debts
- Pensions of British officials in India
- Trade deficits with other countries
Ans- D. trade deficits with other countries
- Choose the allied country (WW- 1)
- Ottoman turkey
Ans- C. France
- Choose the country with central-powers (WW- 1)
Ans- D. Germany
- Who adopted the “assembly line” method for mass production?
- Henry ford
- Andrew Carnegie
- Leland Stanford
- Andrew Mellon
Ans- A. Henry Ford
- Which was the world’s first mass produced car?
- Mercedes Benz SSK
- T- model ford
- Ford thunderbird
- Talbot – Lago
Ans- B. T-model ford
- What was the ‘best cost – cutting decision’ made by Henry ford?
- Repeatedly sped up conveyor belt
- Doubling the daily wage
- Banning trade unions from operating
- Both A and C
Ans- B. doubling the daily wage
- When did the great depression begin?
Ans- A. 1929
- Who was the worst affected by the great depression?
- Agricultural communities
- Working class
Ans- B. agricultural communities
- Which one of the following was not amongst the axis powers? (WW-2)
- Nazi Germany
Ans- B. France
- Which one of the following was not an allied force? (WW-2)
- The Soviet Union
Ans- C. Italy
- Which conference established the International Monetary Fund?
- The Vienna conferences
- Post- war treaty
- Bretton-woods conference
- The round table conferences
Ans- C. Bretton – woods conference
- Choose the Bretton – woods institution?
- The IMF
- The world banks
- The United Nations
- Both A and B
Ans- D. both A and B
- The Bretton woods was based on___________
- Floating exchange rats
- Fixed exchange rates
- Foreign exchange rates
- Unfair exchange
Ans- B. fixed exchange rates
- When did the IMF and the World bank commence financial operations?
Ans- C. 1947
- What is the tax imposed on a country’s imports called?
- Excise duty
- Trade barriers
- Income tax
Ans- B. Tariffs
- What is the full form of the IMF?
- International money fund
- Internal monetary fund
- International monetary fund
- International monetary finances
Ans- C. international monetary fund
- The Bretton woods was a _________
- Post war political association
- Post war economic system
- Post war trading system
- Post war treaty
Ans- B. post-war economic system
- G-77 was an association of __________
- Developing countries
- Under-developed countries
- Western nations
- Industrialist powers
Ans- A. developing countries
- Arrange the events A to D in correct chronological sequence
- The Irish potato famine
- The first world war
- The great economic depression
- Abolition of indentured labour in India
- A > C > D > B
- A > D > C > B
- A > D > B > C
- A > B > C > D
Ans- (iii) A > D > B > C
Very Short Answer type (1 mark each)
- What does NIEO mean?
Ans- The New International Economic Order refers to a system that would grant the developing countries actual control over their natural resources, more aid for international development, more equitable prices for raw materials, and better access for their produced commodities to markets in industrialised nations.
- Give one word for – One who refuses to accept established beliefs and practices.
Ans – Dissenter
- What are MNCs?
Ans- MNCs are Multinational Companies/Corporations. They operate in multiple countries at a time.
- Which country was the single largest exporter of opium in the 1820s?
Ans- India was the largest exporter of opium in the 1820s.
- Which religion was made popular by Jamaican reggae star Bob Marley?
- What attracted European colonists to Africa?
Ans- Africa’s vast natural resources and mineral richness
- Where did most Indian indentured labourers come from?
Ans- Mostly, indentured labourers came from central India, eastern Uttar Pradesh, Bihar, Jharkhand and dry regions of Tamil Nadu.
- What were the religious exchanges made through silk routes?
Ans – Muslim preachers also used similar routes to get to Asia, as did Christian missionaries. Through crossing places on the silk routes, Buddhism was also transmitted to other Asian nations way before Christianity and Islam.
- What goods were exported and imported from silk routes?
Ans – Chinese Pottery, textiles and spices from India were exported to South East Asia and precious metals like gold and silver, flowed from Europe to Asia.
- How did the British conduct opium trade with China?
Ans – British grew opium in India and exported it to China and with the money earned through this sale, it financed its tea and other imports from China
- Who were Shikaripuri Shroffs and Nattukottai Chettiars?
Ans – They were one of the bankers and businessmen who supported Central and Southeast Asian export agriculture with their own resources or loans from European banks, around the first world war
- Why was World War-I called ‘the First Industrial War’?
Ans – The first world war was called the first industrial war since it involved widespread usage of machine guns, tanks, aircraft, chemical weapons, etc. All of these came from contemporary, extensive industry.
- How did germs of smallpox help Europeans in their conquest of America?
Ans – Smallpox turned out to be very lethal, it eliminated entire populations and opened the path for conquest.
- Which important inventions transformed the 19th century world?
Ans – The inventions of railways, steamships, telegraphs and refrigerator helped transform the 19th century world
- What made it possible to export perishable foods through ships?
Ans – The invention of refrigerators.
- What happened after the corn laws were abolished?
Ans- Food could be imported more cheaply into Britain, this improved the food quality of the poor and also led to decline in cultivation as food could be imported more cheaply than was produced
Short answer type questions ( 3marks each )
Q1. Why is it said that the first world war was a war like never before?
Answer – There was no other war like the first world war for the following reasons-
- This was the first war in the modern world to include the participation of such a huge number of countries
- Due to prior industrialisation and technological advances, the machine weapons and chemical weapons used were extremely powerful and deadly
- Hence, there was also a drastic fall in the young, working population of war affected countries
- Following this, the world economy went into an unprecedented depression. The economies worldwide had crashed beyond recovery.
Q2. Mention any three effects of the British Government’s decision for the abolition of the Corn Laws.
(i) Food could be imported into Britain at a much cheaper rate than it would be produced within the country.
(ii) British agriculture was unable to compete with imports. Vast areas of land were left uncultivated and people started migrating to cities or other countries.
(iii) As food prices fell, consumption in Britain rose. Faster industrial growth in Britain also led to higher incomes and therefore more food imports.
Q3. ‘Nineteenth Century indenture has been described as a new system of slavery.’ Explain any three points.
(i) Agents did convince migrants by providing false information about final destinations, modes of travel, the nature of the work, and living and working conditions.
(ii) Sometimes agents even forcibly abducted less willing migrants.
(iii) On arrival at the plantations, labourers found living and working conditions harsh, and there were few legal rights.
Q4. describe the impact of Rinderpest on people’s livelihoods and local economy in Africa in 1890s
Answer – the rinderpest, or cattle plague, was a contagious disease carried by infected cattle imported from British Asia to feed the Italian soldiers in east Africa.
- On its way, it killed nearly 90 percent of African cattle, which destroyed African livelihoods
- Planters, mine owners and European colonists monopolised remaining resources and strengthened their power
- This also forced the Africans to work for wagers and led to colonisation and subduction of Africa
Q5. How did smallpox prove to be the most powerful weapon of Spanish conquerors of America in the early modern phase? explain.
Answer – The colonisation of Americans took place in mid- sixteenth century
- Due to large scale infection of smallpox, the conquerors were successful
- The Spaniards carried smallpox germs into native Americans who were prone to infection due to decreased immunity caused by long – term isolation
- This led to wiping out of many communities and paved way for colonisation
Q6. State three reasons why Europeans fled to America in the 19th century.
(i) Poverty and hunger were common in Europe.
(ii) Cities were crowded and deadly diseases were widespread.
(iii) Religious conflicts were common, and religious dissenters were persecuted.
Q7. ‘Silk routes are a good example of vibrant pre-modern trade and cultural links between distant parts of the world.’ Examine the Statement.
(i) Historians have identified several silk routes, over land and by sea, knitting together vast regions of Asia, and linking Asia with Europe and northern Africa.
(ii) Chinese pottery also travelled the same route, as did textiles and spices from India and Southeast Asia.
(iii) In return, precious metals such as gold and silver flowed from Europe to Asia.
Q8. Describe any 3 dramatic change that occurred in west Punjab in the 19th century, in the held of agriculture
During the making of global agricultural economy, the dramatic agricultural changes in Punjab were –
- A network of irrigation canals was built by the British government
- This was done to transform semi-deserted waste lands into fertile lands
- These were called the canal colonies and wheat and cotton was cultivated for export
Q9. describe various methods employed by the Europeans to recruit and retain labour in Africa.
[CBSE 2016-17 and 2018]
The following the ways taken up by European colonists in Africa to recruit and retain labourers who worked on wagers –
- Heavy taxes were imposed, the payment of which was only possible through labour in plantations and mines
- Inheritance laws were changed: only one family member was allowed to inherit. As a result, all others were pushed into the labour market.
- Mine workers were confined in compounds, and their freedom was confiscated.
Q10. Why did the developing countries organise G-77? Give 3 reasons.
[CBSE 2016-17 and 2019]
The developing nations formed an association of 77 in pursuit of a new international economic order – NIEO – for a fairer and better control over their resources, more development and fair prices for their resources, for the following reasons
- The IMF and world bank were designed to meet the financial needs of industrial countries.
- The Bretton- woods institutions were not equipped to assist the developing nations.
- These newly independent colonies were still being controlled and exploited by their former colonisers and industrialists.
Q11. In what ways did food items offer scope for long distance cultural exchange? Explain.
(i) Traders and travellers introduced new crops to the lands they travelled.
(ii) It is believed that noodles travelled west from China to become spaghetti.
(iii) Arabs traders took pasta to fifth-century Sicily, an island now in Italy.
(iv) Many of our common foods such as potatoes, soya, groundnuts, maize tomatoes, chillies, sweet potatoes and so on were not known to our ancestors and were only introduced in Europe and Asia after Christopher Columbus discovered the Americas.
Q12. Why were Europeans attracted to Africa in the late nineteenth century? Mention any three reasons
Answer – Europeans were drawn to Africa in the late nineteenth century for the following reasons:
- The land and mineral resources in Africa were enormous. It had a fairly small population and a lot of land. Their way of life had long been supported by plentiful land and livestock.
- In order to grow crops and mine minerals for export to Europe, Europeans hoped to develop mines and plantations. They had trouble finding labour that would work for pay. However, they employed other strategies, such as high taxes, to draw and keep the workers.
iii. In addition, Africa had not experienced the industrial revolution and its militaries were backward and ineffective.
Q 13. How did the rest of the world get affected when US loans were withdrawn during the Great Depression? In three points, explain.
The Great Depression’s withdrawal of US loans had varying effects on the rest of the world.
It caused the failure of numerous significant banks and the devaluation of several currencies, including the European pound sterling.
Additionally, it caused a decline in Latin America’s agricultural output and raw material prices.
As no new jobs could be created, unemployment grew out of control. It caused a major emigration from rural to urban areas.
Q14. Describe the effects of abolishing the Corn Laws
- The removal of the Com Laws in England had the following repercussions.
- Food could be brought into Britain for less money once the Corn Laws were repealed than it could be produced there.
- Agriculture in the United Kingdom could not compete with imports.
- Numerous thousands of men and women were suddenly without jobs, and vast tracts of land were left uncultivated.
- Peasants fled abroad or flocked to the cities.
Q15. Define trade surplus. Why did Britain have a trade surplus with India?
The amount by which the value of a country’s exports exceeds the cost of its imports is called trade surplus. Britain had a trade surplus with India because of the following reasons.
- The value of British exports to India was much higher than the value of British imports from India. Britain wanted to balance its trade deficits.
- Trade surplus also helped to pay the ‘home charges’, which included interest payments on India’s external debts and pensions of British officials in India.
Q16. Why was China a preferable location for MNCs and the manufacturing industry?
- since the Chinese revolution of 1949, China gradually organised an economic structure that was favourable to the industrialists
- There was plenty of low- paid labour available for work in factories
- There was a huge consumer population too, which also acted as a market for the produced goods
Source – Based Questions (1 X 4 = 4 marks each)
Read the sources provided and answer the questions that follow
Q1. “Biological” warfare?
John Winthrop, the first governor or the Massachusetts Bay colony in New England, wrote in May 1634 that smallpox signalled God’s blessing for the colonists: ’…the natives…were neere (near) all dead of small Poxe (pox), so as the Lorde has cleared our title to what we possess.’
Now answer the following in a word or a phrase-
(i) which country was colonised using smallpox as a weapon by colonisers?
answer – America.
(ii)Why did smallpox prove to be a deadly killer?
answer- Americans had no immunity against AEuropean diseases due to long isolation.
(iii)how did the Spanish carry smallpox germs ?
answer – they carried the germs on their person.
(iv) mention the name of another disease which aided colonisation in a different part of the world?
answer- Rinderpest (cattle plague).
O2. Sir Henry Morton Stanley in central africa
Stanley was a journalist and explorer sent by the New York herald to find Livingston, a missionary and explorer who had been in Africa for several years. Like other European and American explorers of the time, Stanley went with arms, mobilised local hunters, warriors and labourers to help him, fought with local tribes, investigated terrains, and mapped different regions. These explorations helped in the conquest of africa. geographical explorations were not driven by innocent search for scientific information. they were directly linked to imperial projects.
Now answer the following in a word or phrase-
(i)give one reason for African people rarely working for a wage.
answer- ample land and livestock sustained their livelihoods
(ii) mention one thing that attracted colonists to africa.
answer- due to its vast resources of land and minerals
(iii)What was the major problem faced by Europeans in africa?
answer- shortage of labour
(iv)which fast – spreading disease helped solve the above problem?
Q3. the testimony of an indentured labourer
“…in spite of my best efforts, I couldn’t do all the work allotted to me… In afew days I got my hands bruised all over and I couldn’t go to work for which I was prosecuted and sent to a jail for 14 days…deductions are also made from wages if the work is considered to have been done unsatisfactorily…labourers spend their period of indenture in great trouble”
source- deptt. of commerce and industry, Emigration branch, 1916
(i) What was called by historians as ‘modern system of slavery’?
answer- indentured labour
(ii)mention 2 reasons which drove people into indentured labour.
answer- decline of cottage industry and increase in land- rents and indebtedness.
(iii)mention any 2 major destinations for indian indentured labourers.
answer- caribbean islands , Mauritius , Fiji (any 2)
(iv)Name the nobel prize winning writer who descended from the indian indentured labourers abroad.
answer- V.S. Naipaul
Q4. a hungry mother during the great depression
‘…a hungry and desperate mother…she was thirty-two. she and her seven children had been living on frozen vegetables from the surrounding fields and the birds that the children killed…there she sat…with her children huddled around her’
(i) when did the great depression begin?
(ii) which community was the worst hit by the depression?
answer- the agricultural communities around the world.
(iii) mention 2 reasons behind the great depression.
answer- agricultural overproduce , withdrawal of US loans
(iv) give one word for- ‘the integration of the world economy’
Q5. What are MNCs ?
MNCs are large companies that operate in several countries at the same time. The first MNCs came in the 1920s. The widespread MNCs were a notable feature of the 1950s and 1960s. This was because of high import tariffs which forced these corporations to locate their manufacturing operations and becomes ‘domestic producers’ in as many countries as possible
(i) write the expanded form of MNC
answer- Multinational Corporation.
(ii)What is Tariff?
answer- the tax imposed on a country’s imports from the rest of the world.
(iii)Name any 2 MNCs operating in india.
answer- Apple, Amazon, coca cola , Google india (any 2 of these or any other names)
(iv)name another form of taxation levied on imported goods.
answer- import duty.
Long Answer Type questions (5 marks each)
- Explain the three major types of movements or flows within international economic exchange, as identified by the economists.
The three categories of flows that make up the global economic exchange are as follows.
- The first is the movement of goods, which includes things like wheat or fabric. Following the abolition of the Corn Laws, Britain began importing food. To provide Britain’s requirements, Russia, America, and Eastern European nations all improved their food productivity. Britain’s industrial progress was more rapid, and
more land was put under cultivation as a result of higher food productivity in other nations.
This involved constructing residences and towns, which needed resources and labour.
- Labour flow: This is the movement of people from one location to another in search of employment. Migration was prompted by the need for labour in nations like Australia and the United States. There was a flow of labour while seeking employment. In the nineteenth century, almost 50 million individuals immigrated from Europe to America and Australia. It is estimated that 150 million people worldwide have left their homes and travelled across oceans in search of a brighter future.
- Capital flow: This resulted in the third flow of capital, which was capital for either short-term or long-term investments. In this, loans or corporate investments are used to transfer resources from one nation to another. A worldwide agricultural economy and intricate shifts in labour patterns had emerged by 1890. Before India became independent, the British moved a significant amount of money from India to England. All three have a close connection and had an impact on people’s lives in the nineteenth century.
- How did the Great Depression of 1929 affect the farmers and the middle classes in India in different ways?
The farmers and the middle class in India were impacted by the Great Depression of 1929 in the following ways.
- A decline in agricultural prices that concluded with their collapse in 1930. As a result, the demand for agricultural products further declined.
- The peasants found it challenging to sell their crop and generate income.
- Farmers and peasants who had used their savings and mortgaged* their land became deeply indebted.
- However, the urban regions where the middle class dwelt and had fixed salaries were spared during this depression.
- Salaried members of the middle class were unaffected and instead benefited from lower prices on items. Instead, they became wealthy and could purchase more things for less money.
- How did the global transfer of disease in the pre-modern world help in colonisation of the Americas?
The above stated event took place in the following manner –
- The vast lands, rich minerals, and agriculture of the Americas drew colonisers in the sixteenth century, the Portuguese and the Spanish. The most intriguing fact is that no political or military action was involved in its creation. It happened as a result of the following ways in which diseases were transmitted globally.
- Long ago, America was isolated from the rest of the world. They lacked knowledge and immunity from European diseases.
- The Spanish invaders took advantage of the situation to spread the smallpox virus by using a smallpox patient. It turned out to be a lethal murderer.
- Whole villages were ravaged and died as it swept widely throughout the continent
- Even soldiers and weapons were not needed as much and invaders had their path clear.
- Describe in brief the world economic condition of the post First World War period.
- Economic recovery after World War II turned out to be very challenging.
- In the years before the First World War, Britain’s economy was the largest in the world. Britain was saddled with enormous external debts as a result of its excessive reliance on borrowing from the United States before the war and its inability to regain its former position.
- The United States went from being a global debtor to a global creditor as a result of war. The US and its citizens owned property abroad.
- Numerous agricultural economies experienced difficulties as well. Production of food grains skyrocketed following the war. Grain prices fell as a result, and rural income decreased.
- Huge unemployment rates resulted from the governments cutting back on their war spending during the post-war boom. In Britain, one in five workers did not have a job.
- Why have the historians described the 19th-century indenture as new system slavery? Explain five reasons.
Answer- Nineteenth-century indenture has been described as a ‘new system of slavery’ because of the following reasons:
- Agents tempted the poor people by giving false information about the nature of work, living and working conditions, final destination modes of travel, etc.
- Often migrants were not even told that they were to embark on a long sea voyage. Sometimes agents even forcibly abducted less-willing migrants.
- On arrival at the plantations, labourers found conditions to be different from what they had imagined. Living and working conditions were harsh, and there were few legal rights.
- They were beaten or imprisoned for not being able to meet tasks that used to be very heavy or for running away from the job.
- Normal medical attention was given to them and wages were deducted in case of absence at work or failure to fulfil the task.
- . How mass production lead to surge in the purchase of consumer goods in the US?
- Mass production lowered costs and prices of engineered goods.
- Thanks to higher wages, more workers could now afford to purchase durable consumer goods such as cars.
- There was a spurt in the purchase of refrigerators, washing machines, radios, gramophone players, all through a system of ‘hire purchase’ i.e., on credit repaid in weekly or monthly installments.
- The demand for refrigerators, washing machines etc. was also fuelled by a boom in house construction and home ownership, financed again by loans.
- Why did the Europeans flee to America in the nineteenth century?
Answer – Europeans migrated to America in the 19th century because –
- Until 19th century, hunger and poverty were extremely prevalent in Europe
- The spread of diseases and famines was frequent
- There were religious conflicts as well and the religious dissenters were prosecuted too
- Farming and agriculture had fallen down too as food was imported more cheaply than it could be produced in the country after the abolishment of corn laws
- Due to above reasons, the population led a life of suffering and people migrated in search for better employment and lifestyle opportunities
8) Discuss the effects of the great depression on the United States.
Answer- The great depression had drastic effects on the United States. they are listed below :
- As the depression became evident, the banks in the US began to call back loans and stopped more lending.
- On the other hand, the people/ households were unable to pay the credit due to falling income. So, they were forced to give up on their possessions financed by loans : such as houses, cars, and other things.
- With a fall in the economy, workers were thrown out of work on a large scale to reduce costs in industry. this lead to a large scale unemployment
- with the disrupted economy, nearly 1,10,000 companies had collapsed
- farmers were unable to see their harvests and the prices had crashed too.
- thousands of banks became bankrupt as they were unable to recover investments and loans, and to pay back the depositors.
9) Describe the effects of the Great Depression on the Indian economy.
Answer- The following are the ill-effects that followed the great depression of 1929 on indian economy –
- In India, the exports and imports fell between 1928-34.
- The peasants and the agricultural community suffered the most. due to worldwide agricultural overproduce and a steep fall in incomes,
- the farmers were unable to find markets for their harvest which led to worse incomes
- They further fell deeper into debt as they were unable to repay any loans and revenue wasn’t decreased by the colonial government either .
- All this also drove them to unity against British rule as Mahatma Gandhi launched the civil disobedience movement.
- As the farmers sold their jewellery, India became an exporter of gold, which promoted recovery of the world economy (as believed by economist J. M. Keynes)
- the urban middle class, however, suffered less as they had fixed incomes and prices of goods had fallen.
10) What was G-77 ? Why was it formed? describe its aim and activities. [CBSE 2016-17]
Answer- G-77 was the group of 77 developing nations which gained their independence in 1950s and 1960s. It was in response the unfair treatment they received from the bretton woods organisations and a way to protect and power their development
The following are the reasons for its formation-
- the bretton woods organisations (i.e. the IMF and the World Bank) were designed to attend to the financial crises of western, developed nations
- these organisations, hence, were incapable of assisting the newly independent nations
- they were not equipped to handle issues like poverty, hunger, et cetera: nor were they doing anything about the prevalent control of former colonial powers over the resources fate of these nations
The aim and activities of the G-77 are listed below-
- they sought an actual control over their resources such as minerals and labour
- they aimed to get a fair price for their raw materials, products and labour in the international market
- they wanted a better access to the developed nations’ markets for their natural and industrial produce
11) Explain in detail – the combination of several factors which led to the Great Depression of 1929.
Answer – The depression was an outcome of a combination of multiple factors post the first world war-
- the post – war economy was already fragile
- agricultural overproduction remained a problem. This included a vicious cycle of agricultural overproduce followed by reduced incomes which led to more desperate expansion in production furthering the slump.
- In the mid 1920s, many countries financed their investments through loans from the US. but US overseas lenders panicked at the first sign of trouble.
- With the withdrawal of US loans , dependent countries faced acute crises. It led to multiple bank failures in Europe, intensified slump in agricultural and raw material prices in latin america and elsewhere.
- the US tried to protect the economy by doubling import duties but that was another blow to world trade
This entire series of events ultimately led to the great economic depression of 1928.