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Students can Download Chapter 8 Infrastructure Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 8 Infrastructure

Plus One Economics Infrastructure One Mark Questions and Answers

Question 1.
Which among the following is an economic infrastructure?
(i) Eduction
(ii) Transport
(iii) Healthcare
(iv) Housing
Answer:
(ii) Transport

Question 2.
Who was the largest consumer of commercial energy in 1953-54 in India?
(i) Household sector
(ii) Industry sector
(iii) Agriculture sector
(iv) Transport
Answer:
(iv) Transport

Question 3.
What is the Contribution of nuclear energy of total energy consumption in India?
(i) 2%
(ii) 13%
(iii) 20%
(iv) 10%
Answer:
(i) 2%

Question 4.
Which of the following nations has lowest Health expenditure as a percentage of GDP?
(i) India
(ii) China
(iii) USA
(iv) Sri Lanka
Answer:
(iv) Sri Lanka

Question 5.
Identify social infrastructure from the following.
(i) Education
(ii) Energy
(iii) Transport
(iv) Communication
Answer:
(i) Education

Question 6.
Find out conventional energy.
(i) Biogas
(ii) Wind energy
(iii) Petroleum
(iv) Solar energy
Answer:
(iii) Petroleum

Question 7.
Infant mortality rate in India in 2012 was ______ .
(i) 40
(ii) 47
(iii) 57
(iv) 60
Answer:
(ii) 47

Question 8.
Write the full form of NTPC.
Answer:
NTPC stands for National Thermal Power Corporation.

Plus One Economics Infrastructure Two Mark Questions and Answers

Question 1.
Write any two features of Indian system of medicine.
Answer:

1. They are very effective
2. They are safe and inexpensive

Question 2
State whether true or false.

1. education comes under social infrastructure
2. solar energy is nonconventional energy
3. Ayurveda is an Indian system of medicine
4. major part power generation in India comes from hydro projects.

Answer:

1. true
2. true
3. true
4. False, major part power generation in India comes from thermal projects

Question 3.
Name some National Health Care Programme.
Answer:

• National Malaria Eradication Programme
• National Filaria Control Programme
• National Family Welfare Programme
• National Diarrhoeal Diseases Control Programme

Plus One Economics Infrastructure Three Mark Questions and Answers

Question 1.
Name three sources of non-conventional energy.
Answer:

1. Solar energy
2. Wind energy
3. Tidal power

Question 2.
Classify the following into commercial energy and non-commercial energy:
Coal, petrol, agricultural waste, dry animal dung, twig of trees, natural gas.
Answer:

Question 3.
Classify the following sources of energy into conventional sources and non-conventional sources.
(Coal, Electricity, Wind energy, Solar energy, Petroleum, Tidal energy)
Answer:
1. Conventional source files

• Coal
• Petroleum
• Electricity

2. Non-conventional sources

• Solar energy
• Tidal energy
• Wind energy

Question 4.
List various non-commercial sources of energy?
Answer:
Various non-commercial source of energy are :

• solar energy
• wind energy
• tidal energy
• energy from firewood
• energy from vegetable waste
• energy from dried dung

Question 5.
What are the three basic sources of generating power?
Answer:

1. Hydroelectricity
2. Thermal electricity
3. Nuclear electricity

Question 6.
List the six system of Indian medicine.
Answer:
Six system of Indian medicine are :

1. Ayurveda
2. Yoga
3. Siddha
4. Unani
5. Homeopathy
6. Naturopathy

Question 7.
Explain the term ‘infrastructure’.
Answer:
Infrastructure is the support system on which the sufficient working of a modern industrial economy depends. It is the physical framework which is essential for giving services to people such as roads, railways, airports, ports, dam, power stations, telecommunication educational and health facilities, etc. Infrastructure consists of services like banking, communication, transport, irrigation, power, etc. These are very essential for production of goods.

Question 8.
Name different types of energy?
Answer:
The different types of energy are:

• Coal
• Petroleum
• Natural gas
• Bioenergy
• Solar energy
• Atomic energy

Question 9.
Categorize the following as elements of economic infrastructure and social infrastructure.
[Canals, Houses, schools and colleges, railways, ships, hospitals, banks, courts, power plants, satellite stations],
Answer:

Question 10.
Justify that energy crisis can be overcome with the use of renewable sources of energy.
Answer:
There are two sources of energy namely, commercial and noncommercial. Noncommercial sources are firewood, agricultural waste, and dried dung. These are noncommercial as they are found in nature. Commercial sources of energy like grass hay, twigs and small branches of a tree, sundried cow dung cakes are generally renewable.

More than 60 percent of Indian households depend on these traditional sources of energy for meeting regular cooking and heating needs. The energy crisis can be overcome with the use of renewable sources of energy.

Plus One Economics Infrastructure Four Mark Questions and Answers

Question 1.
Write the names of four atomic energy plants in India.
Answer:

1. Atomic energy power plant at Tarapur
2. Atomic energy power plant at Narora
3. Atomic energy power plant in Kalapakkam (Chennai)
4. Atomic energy power plant at Rana Pratap Sagar Dam (Kota)

Question 2.
Write a note on ISM.
Answer:
Indian Systems of Medicine (ISM):
It includes six systems: Ayurveda, Yoga, Unani, Siddha, Naturopathy, and Homeopathy (AYUSH). At present, there are 3,004 ISM hospitals, 23,028 dispensaries and as many as 6,11,431 registered practitioners in India. But little has been done to set up a framework standardize education or to promote research.tSM has huge potential and can solve a large part of our health care problems because they are effective, safe and inexpensive.

Question 3.
Kerala is experiencing huge energy crisis. Suggest some measures for solving the problem.
Answer:
More public investment, better research and development efforts, exploration, technological innovation and use of renewable energy sources can ensure solution of energy crisis in Kerala. Though the private sector has made some progress, it is necessary to tap this sector to come forward and produce power on a large scale.

One also has to appreciate the efforts made in this regard. More efforts and encouragement should be given by the government for the widespread use of wind, solar and tidal energy production in the state. Moreover, greater reliance on renewable energy resources offers enormous economic, social and environmental benefits.

Question 4.
Analyze the state of health infrastructure in India citing facts and figures.
Answer:
India has built up a vast health infrastructure and manpower at different levels since independence. At the village level, a variety of hospitals have been set up by the government. India also has a large number of hospitals run by voluntary agencies and the private sector.

These hospitals are manned by professionals and paramedical professionals trained in medical, pharmacy and nursing colleges. Since independence, there has been a significant expansion in the physical provision of health services.

During 1951-2000, the number of hospitals and dispensaries increased from 9,300 to 43,300 and hospital beds from 1, 2 to 7.2 million during 1951 – 99, nursing personnel increased from 0.18 to 8.7 lakh and allopathic doctors from 0.62 to 5.0 lakh. Expansion of health infrastructure has resulted in the eradication of smallpox, guinea worms and the near eradication of polio and leprosy.

Question 5.
Differentiate between commercial and noncommercial sources of energy.
Answer:
Commercial sources of energy:
Commercial sources of energy include coal, petroleum, and electricity. They could be bought and sold. They are generally exhaustible in nature. More than 60 percent of Indian households depend on the traditional source of energy.

Non-commercial sources of energy include firewood, agricultural waste, and dried dung. They are found in nature or forests. Lesser number of persons use these resources.

Question 6.
Point out the connection between consumption of energy and economic growth?
Answer:
The central issue has been whether economic growth stimulates consumption of energy or is energy consumption itself a stimulus for economic growth. But whatever may be the causal relationship between energy consumption and economic growth of a nation, they are both closely related.

Since energy is an essential input of all productive activities, agricultural or industrial, the process of economic development inevitable demands increasing levels of energy consumption. The higher the degree of economic growth, the higher is the consumption of energy and vice versa. Thus energy consumption is an important indicator of economic growth.

Electricity is one of the most critical infrastructures that determines economic development of a country. The growth rate of demand for power is generally higher than GDP growth rate. In order to have an 8 % GDP growth rate per annum, the power supply needs to grow around 12% annually. This shows that the rates of consumption of energy and economic growth are connected.

Plus One Economics Infrastructure Five Mark Questions and Answers

Question 1.
‘Infrastructure facilities boost production’ Do you agree? Substantiate your answers.
Answer:
Infrastructure facilities boost production in the following manner.
1. Infrastructure provides support services in the main areas of industrial and agricultural production, domestic and foreign trade and commerce.

2. Infrastructure facilities include roads, railways, ports, airports, dams, power stations, oil and gas pipelines, telecommunication facilities, educational systems, health systems, monetary systems, etc. It is the support system on which depends the efficient working of a modern industrial economy.

3. Modem agriculture largely depends on infrastructure for speedy and large scale transport of seeds, pesticides, fertilizers, and the produce by making use of modem roadways, railways, and shipping facilities.

4. Infrastructure contributes to the economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.

Question 2.
“Infrastrucure contribute to the economic development of a country like india” Do you agree? Justify.
Answer:
Yes, I agree with the statement that infrastructure contribute to the economic development of a country like India. The reason why infrastructure is an essential precondition for economic development are pointed out below.

1. Infrastructure contributes to economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.

2. Inadequate infrastructure can have multiple adverse effects on health. Improvements in water supply and sanitation have a large impact by reducing morbidity from major waterborne diseases and reducing the severity of disease when it occurs.

3. In addition to the obvious linkage between water and sanitation and health, the quality of transport and communication infrastructure can affect access to health care.

4. Infrastructure is in itself a source of employment for the large labour force of developing economies like India.

Question 3.
Suggest the progammes to increase the effectiveness of health care system.
Answer:
The following are the progammes to increase the effectiveness of health care system

• Public health facilities should be decentralized
• People should be educated about the nature, causes, and remedies of general diseases
• People should be made aware about sanitation facilities, cleanliness, immunization, etc.
• Efforts should be taken to develop health infrastructure
• Primary health care facilities should be strengthened
• Private-public participation in health care system should be encouraged

Question 4.
“India’s power sector faces some challenges today”. Do you agree? If yes mention the challenges.
Answer:
agree with the statement that India’s power sector faces some challenges today.
Some of the challenges that India’s power sector faces today are:

1. India’s installed capacity to generate electricity is not sufficient to feed an annual economic growth of 7 percent. In order to meet the growing demand for electricity, between 2000 and 2012, India needs to add 1,00,000 MW of new capacity, whereas, at present, India is able to add only 20,000 MW a year. Even the installed capacity is underutilized because plants are not run properly

2. State Electricity Boards (SEBs), which distribute electricity, incur losses which exceed Rs 500billion. This is due to transmission and distribution losses, wrong pricing of electricity and other inefficiencies. Some scholars also say that distribution of electricity to farmers is the main reason for the losses; electricity is also stolen in different areas which also adds to the woes of SEBs

3. Private sector power generators are yet to play their role in a major way same is the case with foreign investors

4. There is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country
Thermal power plants which are the mainstay of. India’s power sector are facing a shortage of raw material and coal supplies.

Question 5.
There are some drawbacks in our health care system. Do you agree? Substantiate.
Answer:
Yes, I agree with these statements
The Indian constitution assign, the state, the responsibility of raising the level of nutrition and the standard of living of its people and the improvement of public health. However, the National Health Policy lacks specific measures to achieve broad state goals. The government expenditure on health sector is 5% of total GDP. This is very low compared to other countries.

At present, less than 0% of the population utilises public health facilities However only 38% of the Public Health Centres (PHCs) have the required number of doctors and only 30% of the PHCs have sufficient stock of medicines. The people living in Rural areas do not have sufficient medical infrastructure.

There is shortage of beds, doctors and basic diagnostic facilities in rural areas. This has led to regional inequality in health services. Thus, it can be concluded that there are some draw-backs in our health care system.

Plus One Economics Infrastructure Eight Mark Questions and Answers

Question 1.
Prepare a seminar report on “energy and health infrastructure”.
Answer:
“Energy and health infrastructure”
Introduction:
The plus one commerce batch of (Name of school) conducted a seminar on the topic “Energy and health infrastructure” on 12/09/2018 at 11.0 a.m with the ample guidance of our economics teacher. Our class was divided into three groups to cover the entire area of the topic.

The first group explained the meaning and relevance of infrastructure, the second group explained the energy infrastructure and the third group presented their idea on health infrastructure. They focused on the area given to them and the group leader presented the seminar paper after required preparation.

Content:
Infrastructure:
Infrastructure is the support system on which depends the efficient working of a modern industrial economy. Modern agriculture also largely depends on it for speedy and largescale transport of seeds, pesticides, fertilizers, and the products by making use of modern roadways, railways and shipping facilities.

Infrastructure contributes to economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.

1. Energy:
Energy is a critical aspect of the development process of a nation. It is, of course, essential for industries. Now it is used on a large scale in agriculture and related areas like production and transportation of fertilizers, pesticides and farm equipment. It is required in houses for cooking, household lighting, and heating.

There are commercial and non-commercial sources of energy. Commercial sources are coal, petroleum, and electricity as they are bought and sold. They account for over 50 percent of all energy sources consumed in India. Noncommercial sources of energy are firewood, agricultural waste, and dried dung.

These are noncommercial as they are found in nature/forests. Both commercial and noncommercial sources of energy are known as conventional sources of energy. There are three other sources of energy which are commonly termed as nonconventional sources solar energy, wind energy, and tidal power.

The most visible form of energy, which is often identified with progress in modern civilization, is power, commonly called electricity; it is one of the most critical components of infrastructure that determines the economic development of a country. The growth rate of demand for power is generally higher than the GDP growth rate.

Studies point that in order to have8 percent GDP growth per annum, power supply needs to grow around 12per cent annually. Electricity is a secondary form of energy produced from primary energy resources including coal, hydrocarbons, hydro energy, nuclear energy, renewable energy, etc. Primary energy consumption takes into account the direct and indirect consumption of fuels.

2. Health:
Health is not only absence of disease but also the ability to realize one’s potential. It is a yardstick of one’s wellbeing. Health is the holistic process related to the overall growth and development of the nation. Development of health infrastructure ensures a country of healthy manpower for production of goods and services.

In recent times, scholars argue that people are entitled to health care facilities. It is the responsibility of the government to ensure the right to healthy living. Health infrastructure includes hospitals, doctors, nurses and other paramedical professionals, beds, equipment required in hospitals and a well developed pharmaceutical industry.

Conclusion:
All the three groups presented their topics with necessary facts and figures. After the presentation, there was a question-answer session. The active participation of everyone made this session live and interesting. On the whole, the seminar was a big success.

Students can Download Chapter 7 Employment-Growth, Informalisation and Related Issues Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 7 Employment-Growth, Informalisation and Related Issues

Plus One Economics Employment-Growth, Informalisation and Related Issues One Mark Questions and Answers

Question 1.
Some instances of people engaging in economic activity in given below. Identify worker from there.
Answer:
(a) A man who temporarily abstains from work due to illness.
(b) A woman is paid by her employer.
(c) A self-employed farmer.
(d) All the above
Answer:
(d) All the above

Question 2.
Which among the activity?
(a) Trade
(b) Transportation
(c) Construction
(d) Mining
Answer:
(d) Mining

Question 3.
Which organisation is responsible for estimating unemployment in India?
(a) ILO
(b) NSSO
(c) NitiAayog
(d) None of these
Answer:
(b) NSSO

Question 4.
Identify the activity not included in secondary sector.
(a) Quarrying
(b) Manufacturing
(c) Construction
(d) Water supply
Answer:
(a) Quarrying

Question 5.
Choose the correct answer Workforce refers to that part of:
(a) labour force which is employed
(b) population which is employed
(c) population which is forced to work
(d) labour force which is employed
Answer:
(a) labour force which is employed

Question 6.
Name the sector in the main source of employment for the majority of workers in India.
(a) Primary Sector
(b) Secondary Sector
(c) Service Sector
(d) Tertiary sector
Answer:
(a) Primary Sector

Question 7.
Who developed the concept of unemployment in India?
Answer:
National Sample Survey Organisation (NSSO) has developed the concepts of unemployment suitable to Indian conditions.

Question 8.
The newly emerging jobs are found mostly in the …………. sector (Service/agriculture/manufacturing).
Answer:
Service.

Question 9.
Name the main sector providing maximum employment in India?
(a) Agriculture
(b) Industry
(c) Service
(d) None of these
Answer:
(a) Agriculture sector/primary sector.

Plus One Economics Employment-Growth, Informalisation and Related Issues Two Mark Questions and Answers

Question 1.
Meena is a housewife. Besides taking care of household duties, she works in a cloth shop which is owned and operated by her husband. Can she be considered as a worker? Why?
Answer:
Meena’s activities in the cloth shop owned by her husband are not considered as the activity of a worker since she is not paid for her service. If she works in the shop owned by some other person and is paid for her services then she will be considered as a worker.

Question 2.
List any five activities that contribute to national income in India.
Answer:
The activities that contribute to national income in India are:

• farming
• trading
• mining
• treatment of a doctor in hospital
• manufacturing
• forestry

Question 3.
Distinguish between usual status and weekly status?
Answer:
Usual status refers to a situation where a person usually spends majority of his time in work. In India, 183 days of work is a standard cutoff per usual status. On the other hand, if the person is found to be a part of the workforce during the stipulated week, he will be considered as employed by weekly status.

Question 4.
Given below some economic activities. Classify them as primary, secondary and tertiary sector activities. Agriculture, Mining and Quarrying, Manufacturing, Electricity Gas and Water Supply Construction, Trade, Transport and Storage, Services.
Answer:
1. Primary sector

• Agriculture
• Mining and Quarrying

2. Secondary sector

• Manufacturing
• Electricity, Gas and Water Supply
• Construction

3. Tertiary sector

• Trade
• Transport and Storage
• Services

Question 5.
What is a worker-population ratio?
Answer:
Worker population ratio is the percentage of total population engaged in work. When the total number of workers is divided by population and multiplied by 100, we get the worker – population ratio.
Worker population ratio = \(\frac{\text { Total number of workers }}{\text { Population }} \times 100\)

Question 6.
Write a short note on RLEGP.
Answer:
RLEGP stands for Rural Landless Employment Guarantee Programme. It was introduced in August 1983. This programme guarantees employment to at least one members of every landless family up to 100daysin a year.

Plus One Economics Employment-Growth, Informalisation and Related Issues Three Mark Questions and Answers

Question 1.
Match the following

Answer:

Question 2.
Raj is going to school. When he is not in school, you will find him working in his farm. Can you consider him as a worker? Why?
Answer:
Raj, when he is busy in his farm contributes to production but he is not paid for his work. He helps his parents in agricultural jobs. As he is not paid, he is not a paid worker.

Question 3.
Kerala economy is experiencing huge unemployment problems. Similarly, the number of workers from outside Kerala are visiting our states and engaging in different activities. What do you infer from this? Justify your answer.
Answer:
In Kerala there exists problem of unemployment, especially educated unemployment. The educated people are usually unwilling to engage in manual works and therefore prefer white color jobs. They often go outside the state and even abroad to find a suitable job in accordance with their education level. At the same time, the usual works in the state are done by people coming from outside the state.

Plus One Economics Employment-Growth, Informalisation and Related Issues Four Mark Questions and Answers

Question 1.
Name some of the recent employment generation programmes launched by the Govt, of India.
Answer:
Following are some of the recent employment generation programmes launched by the Govt, of India.

• Rural Landless employment Guarantee programme (RLEGP)
• National Rural Employment Guarantee programme (NREGP)
• Bharat Nirman Programme
• Janani Suraksh%JTojana

Question 2.
Distinguish between open unemployment and technical unemployment?
Answer:
When the country’s labour force does not get opportunities for gainful employment, it is termed as open unemployment. On the other hand technical unemployment refers to persons who have been thrown out of work by the introduction of superior technology.

Question 3.
Classify the following into organized sector and unorganized sector.
Street vender, school teacher, business executive, agricultural labourer, mechanic, railway ticket examiner, college professor, software engineer, head load worker, cart puller, washerman.
Answer:
1. Organized sector:

• Schoolteacher
• Business executive
• Mechanic
• Railway ticket examiner
• College professor
• Software engineer

2. Unorganized sector:

• Street vender
• Agricultural labourer
• Head load worker
• Cart puller
• Washerman

Question 4.
Analyze the recent trends in sectoral distribution of workforce in India.
Answer:
Primary sector is the main source of employment for majority of workers in India. Secondary sector provides employment to only 16% of workforce. About 24% of workers are in service sector. More than three – fourth of the workforce in the rural India depends on agriculture and mining. About 10% of the rural workers are working in manufacturing industries, construction and other sectors.

Service sector provides employment to only about 13% of rural workers. About 60% of urban workers are in the service sector. The secondary gives employment to about 30% of the urban workforce. Women workers concentration is very high in primary sector. Men get opportunities in both secondary and services sectors.

Question 5.
Prepare a note on NREGP.
Answer:
The government of India passed an Act in Parliament known as the National Rural Employment Guarantee Act 2005. As a result of this act, the employment generation programme known as National Rural Employment Guarantee Programme (NREGP) came into existence. By 2008, it has been extended to all the districts of the country.

lt promises 10Odays of guaranteed wage employment to all adult members of rural households who volunteer to do unskilled manual work. The families, which are living below poverty line, will be covered under the scheme. This scheme is one of the many measures that the government implements to generate employment for those who are in need of jobs in rural areas.

Plus One Economics Employment-Growth, Informalisation and Related Issues Five Mark Questions and Answers

Question 1.
The following table shows Worker-Population Ratio in India during 1999-2000.

1. Analyze the table
2. Give reasons for the findings

Answer:
1. It shows the different levels of participation of people in economic activities. For every 100 persons, about 40 (by rounding off 39.5) are workers in India. In urban areas, the proportion is about 34 whereas in rural India, the ratio is about 42.

2. People in rural areas have limited resources to earn a higher income and participate more in the employment market. Many do not go to schools, colleges and other training institutions. Even if some go, they discontinue in the middle to join the workforce; whereas, in urban areas, a considerable section is able to study in various educational institutions.

Urban people have a variety of employment opportunities. They look for the appropriate job to suit their qualifications and skills. In rural areas, people cannot stay at home as their economic condition may not allow them to do so.

Question 2.
Suggest the measures to be adopted to solve the problem of unemployment in India?
Answer:
Measures to solve the unemployment in India are suggested as follows.

1. Investment in heavy and basic industries and consumer goods industries should be increased. They should provide more employment with the supply consumer goods.
2. Cottage and small scale industries should be developed because they provide more employment by adopting labour intensive technique.
3. Educational System should be changed. Emphasis should be given to vocational education.
4. Means of transport and communication should be developed.
5. Rapidly rising population should be checked by adopting family planning and welfare schemes,
6. Rural work programme should be developed.
7. Youth enterpreneurs should be financed for self-employment.
8. Infrastructure of the economy should be increased.

Question 3.
How far formal sector is differentiated from informal sector? Point out some of the benefits of working in the formal sector. Analyze the informalization found among the Indian workforce.
Answer:
All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments and those who work in such establishments are formal sector workers. All other enterprises and workers working in those enterprises form the informal sector.

Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self-employed who do not have any hired workers.

There are several benefits enjoyed by the workers in the formal sector. Some of them are :

• Those who are working in the formal sector enjoy social security benefits.
• They earn more than those in the informal sector.
• Developmental planning envisaged that as the economy grows, more and more workers would become formal sector workers and the proportion of workers engaged in the informal sector would dwindle.

We learn that there are about 400 million workers in the country. There are about 28 million workers in the formal sector. That is only about seven per cent (28/400 × 100). Thus, the rest 93 per cent are in the informal sector. Out of 28 million formal sector workers, only 4.8 million, that is, only 17 percent (4.8/28 × 100) are women.

In the informal sector, male workers account for69 per cent of the workforce Since the late 1970s, many developing countries, including India, started paying attention to enterprises and workers in the informal sector as employment in the formal sector is not growing.

Workers and enterprises in the informal sector do not get regular income; they do not have any protection or regulation from the government. Workers are dismissed without any compensation. Technology used in the informal sector enterprises is outdated; they also do not maintain any accounts. Workers of this sector live in slums and are squatters.

Question 4.
Discuss causes responsible for unemployment in India.
Answer:
The causes responsible for unemployment in India may be discussed below.
1. Slow economic growth:
The nature of Indian economy is underdeveloped and the rate of economic growth is slow. This causes lower employment opportunities to the rising population.

2. Rapid Growth of Population:
Constant increase in population has been a great problem of India. It is one of the main causes of unemployment. Despite the completion of nine Five Year Plans, the number of unemployed has actually increased inspite of decreasing.

3. Agriculture:
A Seasonal Occupation: Agriculture is so underdeveloped in India that it largely offers seasonal employment. Most of the farmers remain idle for three to four months in a year. The volume of disguised unemployment is estimated to be nearly 15 percent of the total working population in agriculture.

4. Lack of Irrigation Facilities:
Despite the completion of Nine Five Year Plans, irrigation facilities could be provided only to 34 percent of agriculture area. For want of irrigation only one crop is grown in a year on the large part of agricultural land. Consequently, the farmers remain unemployed for quite sometime during the year.

5. Joint Family Systme:
It encourages disguised unemployment. Joint family system is more prevalent in rural areas; hence a high degree of disguised unemployment exists there.

6. Decline of Cottage and Small Industries:
The industrial development policy adopted by the Britishers adversely affected the artisans working in small and cottage industries. The goods previously produced by these industries are now being produced by large scale industries.

These artisans were, therefore, thrown out of employment. After Independence, Government of India has been taken several measures to revive and develop small scale and cottage industries, but still, these continue to be in distress.

7. Low Savings and Investment:
There is shortage of capital in India, and even the scarce capital has not been wisely invested. Bulk of the capital has been invested in large scale industries with high capital-output ratio needing more capital per unit of output.

8. Mobility of Labour:
Mobility of labour in India is very low. Owing to their attachment to the family, people generally do not move out to far off areas even when jobs are available there. Factors like diversity of language, religion and customs also contribute to low mobility. Lesser the mobility, greater the unemployment.

You can Download The Industrial Revolution Questions and Answers, Notes, Plus One History Chapter Wise Questions and Answers Kerala Chapter 9 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One History Chapter Wise Questions and Answers Chapter 9 The Industrial Revolution

Chapter 9 the Industrial Revolution Notes Question 1.
Define Industrial Revolution and describe its main features.
Answer:
The changes that took place in the industry and economy of England between 1780s and 1850s are called the first Industrial Revolution.

The Industrial Revolution was a technological revolution. It was new technology and new machines that brought the Industrial Revolution in England. The progress in technology made large scale production possible.

Industrial Revolution: Main Changes:

1. Change from physical labour to machine work.
2. Movement from the home system to the factory system.
3. Large scale mechanization.
4. Use of energy sources like steam and electricity.
5. Revolutionary changes in travel and communication (Ships, railway).

Question 2.
Make a note of the books and writers that throw light into the Industrial Revolution.
Answer:
The term Industrial Revolution was first used by George Michel of France and Frederick Engels of Germany. In English language, it was used for the first time by Sir Arnold Toynbee (1889-1975) who was a great thinker and economist. He used this term to describe the changes that took place in England between 1760 and 1820. On this subject, he delivered a series of lectures in Oxford University. After his death, these lectures were published in a book form with the title Lectures on the Industrial Revolution in England: Popular Address, Notes, and other Fragments. It was this book that popularised the term Industrial Revolution.

Class 6 History Chapter 9 Questions and Answers Question 3.
Industrial Revolution started in Britain. Why?
Answer:
Industrial Revolution started in Britain. There are many factors that helped Britain to become the first industrial nation.

1. Political stability: As England, Wales and Scotland came together under a single long, there has been political stability in Britain since the 17^th century. The country had common laws and a unified currency system. The market in the country had a national character. Since regional authorities did not impose taxes on goods, there ‘ was no price increase. This kind of political stability helped Britain.

2. Wide use of money: Since the 17^th century, money had been used extensively as a means of transaction. With this, a lot of people began to get cash as wages and salaries instead of goods. By using this cash, people could buy any goods of their choice. This enlarged the market and it helped the Industrial Revolution.

3. The Influence of the Agricultural Revolution: Prior to the Industrial Revolution, there was an agricultural, revolution in Britain. Big landowners bought the small pieces around them and enclosed the fields with fences. Thus there were big estates that helped in the increased production of foodstuff. The people who earned their livelihood by grazing cattle in the open fields could not continue to do so and they became jobless. They went into big cities seeking jobs. By providing raw materials and labour, the agricultural revolution helped the Industrial Revolution.

4. Cities, trade and wealth: The growth of cities and trade and the availability of wealth helped the Industrial Revolution. From the 18^th century, cities have been growing in Europe. Out of the 19 metropolises, 11 were in Britain. London was the biggest. London became a centre of all the markets in the country.

Question 4.
Explaining the discoveries and changes in the manufacturing of coal and iron, describe how they helped the Industrial Revolution.
Answer:
Coal and iron ore were essential for the. manufacture of machines were plenty in England. Materials like black lead, copper and white lead which were extensively used in industries were also plenty in the country. But until the 18^th century, there was a shortage of “usable iron”. Iron was made by melting iron ore into a liquid state and then separating the pure iron from it. To melt iron ore charcoal was used. There were many problems with this. Since charcoal was brittle, it was difficult to transport charcoal to faraway places. Because of the impurities in it, the iron produced this way was not of high quality. Moreover charcoal could not produce high heat. Because of the large scale deforestation, there was a shortage of charcoal.

The solution to this problem was found by the Darby family of Shropshire. In 50 years, three generations of this family (grandfather, father, and son) brought a revolution in the refining of iron.

In 1709, Abraham Darby (1677-1717) developed the first blast furnace which could maintain a very high degree of heat. In it, coke could be used. Coke was made by removing the sulphur and other impurities from coal. With this, there was no need for charcoal. The iron that was made from the blast furnace of Darby was strong and of a higher quality.

Darby II(1711-1768) made cast iron from iron. This would not break easily. Henry Cort (1740-1823) made two important discoveries – the puddling furnace to remove impurities from pig iron and the rolling mill to produce rails. These discoveries helped in producing many different kinds of iron products.

Question 5.
The cotton industry had two special features. Write about them.
Answer:
The cotton industry had two special features.

1. Cotton had to be completely imported. The major portion of the cloth made from this was fully exported. This: helped in maintaining the colonization process. To get raw materials and to’ sell the finished goods, control over the colonies was essential.

2. The cotton industry largely depended on the work of women and children in factories. This showed the cruel face of the early industrialization.

Question 6.
In 1773, John Kay invented the flying shuttle. What were the other inventions related to the cotton industry?.
Answer:
1. In 1773, John Kay invented the flying shuttle. Using this, the speed in weaving clothes was increased. One worker Could now do the work of two. Since spinning (thread-making) was a slow process, enough thread was not available for weaving clothes. This problem was solved by Hargreaves.

2. In 1765 James Hargreaves had invented the, spinning jenny. This jenny could produce many strands of threads at the same time. But the strands were not sufficiently strong.

3. In 1769 Richard Arkwright invented a new spinning machine called water frame. This machine could produce strong threads. The production capacity of the spinners increased 7 times.

4. In 1779, Samuel Crompton invented a machine called mule. With this, a spinner could make 250 strands of thread simultaneously.

5. In 1787 Edmund Cartwright invented power loom. This machine worked with mechanical energy and it drastically increased the speed of weaving. It was easy to work with it. If the thread broke, it would stop automatically. Anything could be woven in this loom.

From the 1830s, importance was given by the cotton industry to increase the productivity of workers and not to inventions.

Chapter 9 the Industrial Revolution Question 7.
For large scale industrialization, steam power was essential. Describe the major inventions in the area.
Answer:
In 1698, Thomas Savery invented a pump that worked on steam power. It was used to drain water from mines. It was called Miner’s Friend. It worked very slowly. Moreover when the pressure increased the boiler burst.

In 1712, Thomas Newcomen invented another steam engine. This helped in draining water from the mines in a better way. But the steaming chamber became cold too soon and thus energy was lost and this was a defect of this machine.

In 1769, James Watt developed his steam engine. Until then all the steam machines were used only in the mines. From mere pumps, James Watt changed steam engines to a driving force. His steam engines were suitable for different industries. In 1775, with the help of his friend Mathew Bouton, James Watt established a factory in Birmingham for producing steam engines. This factory-produced steam engines one after the other. By the end 18^th century, stream energy of Watt replaced water power.

History Plus One Chapter 9 Question 8.
During the period of the Industrial Revolution, There was great progress in the building of canals. Justify.
Answer:
An important thing that took place during the Industrial Revolution was the changes in the modes of travel. These changes were first visible in the construction of canals and railways.

Canals were first made to transport coal to the cities. Taking coal by road was expensive and slow. Since a lot of coal was needed, there was a great need for canals. The most famous of the early canals were Worsley Canal built by James Brindley (1716-72). Transporting coal to the city was its aim. When the canal was completed, the price of coal was reduced to half.

HssLive in History Question 9.
The most surprising change in travel was the development of the railway. Explain.
Answer:
The most surprising change in travel was definitely the development of the railway. George Stevenson started the railway age. In 1814 he built the steam engine called rocket. With this engine, a train could go as fast as 35 miles an hour and this was history. Soon railways became a new means of travel and transport. Rail travel was available throughout the year and it was cheap and fast. People and goods could be easily transported.

Railway travel connected two inventions – rails and steam engines. In the 1760s iron rails replaced wooden rails. At the beginning of the 19th century, steam engines began to be used in railways.

In 1801 Richard Trevithick developed a machine called. Puffing Devil. This machine was useful in dragging trucks around the mines.

In 1814 George Stevenson made a train with the name Blucher. It could climb hills carrying even goods weighing 30 tons. It was Stevenson that built the first rail Connecting Stockton and Darlington. In 1830, Liverpool and Manchester were linked by rail. With the opening of this railway line, the railway age dawned.

Chapter 9 the Industrial Revolution Answers Question 10.
Prepare a seminar paper showing the Changes the Industrial Revolution brought.
Answer:
The Industrial Revolution brought many changes in the life of people. Though it brought ease and comfort to one section of the people, it brought misery and pain to some others.

Rich persons invested money in different industries to reap profits. Their income increased dramatically because of the proper use of goods, services, knowledge, and productivity. But industrialization arid urbanization adversely affected common people. Families were separated, cities became crowded and dirty, and the terrible work conditions in the factories made people suffer.

In 1750, in England, there were only two cities that had more than 50,000 people. By 1850, this increased to 29. The speed of this growth did not reflect on the life of people. They.did not have proper places to live and sanitation facilities. Not even enough drinking water was available. Persons newly coming to the cities were forced to live in the slums in, or close to, the cities. But the rich people built their second homes in villages which were free from pollution.

Workers:
A survey done in 1842 revealed that the longevity of the workers (labourers) in the city was less than those of others. The average life expectancy of workers was 15 years in Birmingham, 17 in Manchester and 21 in Derby. This was because in cities many children died at a very young age. Many died even before they reached 5. The increase in the city population was because of migration from the rural areas and not because of increased birth rates there.

Workers died prematurely mainly because of contagious diseases. Cholera and typhoid that came as the result of water pollution and tuberculosis that spread through the atmosphere killed many. In a cholera epidemic in 1832, more than 31,000 workers died.

Until the end of the 19th century, the municipal authorities ignored these dangerous circumstances. There was also no medical expertise to diagnose and treat these diseases.

Women, Children, and Industrialization:
One of the worst outcomes of industrialization was the exploitation of women and children. Children of poor parents had to work in the fields and also at home. They worked under strict supervision from their parents or relatives. The village women had to work in the field. They grew cattle and gathered wood. They also made thread using looms.

In the factories of the city, women and children were made to work. The work here was quite different from the work in villages. They had to work in factories and mines for long periods without rest and under strict supervision. They were punished severely for any little mistakes they made. The income from the women and children were needed for meeting the expenses of the family as the men earned very little as they had low wages.

Even when the use of machines became widespread, employers preferred women and children to do the work because they had to be paid much less than men. The women and children would not protest against bad working conditions.

In the cotton industries of Lancashire and Yorkshire, plenty of women and children were employed. In silk-making, brocade making and sewing, women were the main workers. In the iron industry at Birmingham also they worked along with children.

Children were made to labour hard. Machines like the spinning jenny were made in such a way that children with small bodies and fast fingers could work them. Since children could move in between the many thickly laid machines in the factory, they were preferred in the cotton mills. Even on Sundays, they had to work cleaning the machines. Thus they were denied rest and even clean air. Accidents were common in the factories. Some even died in factories as they fell on to the machines being tired and sleepy.

The work in the mines was also dangerous. Accidents were usual there. These were caused by the upper portions of the mines crumbling or because of the explosions carried out there. Mine owners employed children to draw the carts filled with coal along the underground rails. Since entrances were narrow and small, children were preferred by the cruel owners. The children carried loads of coal. Working in the mines was looked upon as training for working in the factories. Evidences from the factory records show that there were children of even less than ten years working there.

It is true that the self-confidence and economic situation of the working women were better. But the adverse circumstances in which they worked, the children they lost at birth or infancy, and the dirty slums in which they were forced to live spoiled the little satisfaction they got from the wages they earned.

Plus One History Notes in Malayalam Question 11.
Against the evils of industrialization, there were strong protests. Prepare a seminar paper based on this statement.
Answer:
Against the evils of industrialization, there were strong protests in England as well as in other industrialized societies. The slogans of the French Revolution “Liberty, Equality, and Fraternity” gave these movements impetus. The French Revolution had shown the way for fighting for organizing democratic institutions, controlling the price of essential things like bread and to reduce the sufferings caused by wars.

Political protests against the adverse conditions in the factories of England were getting stronger. Workers also demanded the right to vote. The British government first tried to suppress these movements. It brought hew laws preventing the people from protesting.

Between 1792 and 1815, there were constant wars between England and France. As a result, European trade suffered. Factories had to close down. Unemployment increased. The prices of essential things like bread and meat skyrocketed.

In 1795, the British government passed two Combination Acts. The Combination acts said that any writing or speech against the king, constitution or government is against the law. The Parliament; banned any unpermitted meeting of more than 50 persons. But the protests against government policies continued. The Parliament which included landowners, producers and professionals were against giving voting right to the workers. It also backed the anti-people Corn Laws.

The workers in the factories and cities started expressing their anger in many ways. From 1790 there were many ‘Bread Riots’ throughout Britain. The main food of the poor people was bread. The increase in its price troubled them. People captured hoarded bread and distributed it among people at reasonable prices. This was a big blow to the greedy merchants. The ‘bread riots’ continued until 1840.

The Enclosure Movement started by the rich in the early 1700s increased the misery of the common people. Rich landowners bought pieces of land from small farmers and increased the size of their farms which were protected by enclosures (walls). This also adversely affected poor people. They were forced to work in industries.

The introduction of machines in the cotton industry j destroyed the livelihood of many. Thousands of J weavers lost their jobs. They became poor. In the 1790s, the weavers began to demand the legal minimum wages. The Parliament was not ready to make such laws. Against this, the weavers started protests. The government dismissed them from their jobs by force. The desperate workers destroyed power looms. They believed that it was the machines that destroyed their means of livelihood. Workers made strong resistance against mechanization in the wool industry at Nottingham. There were also protests in Leicestershire and Derbyshire.

The workers in Yorkshire who traditionally sheared (cut) the wool from sheep destroyed the shearing frames that were brought for this purpose. In the 1830s, workers in the fields protested against the threshing, machines. They destroyed the machines that were a threat to their jobs. 9 of the protesters were hanged. 450 were deported to Australia as criminals.

Luddism was another Movement that was started against industrialization. Workers who thought that machines were the cause of all their troubles started this movement with the plan of destroying them. This Movement was begun under General Nel Ludd. England suppressed this moment by using the army. Luddism was not a movement that merely wanted to destroy machines. The members of this group demanded minimum wages. They also wanted to stop the exploitation of women and children in the factories and other workplaces. They were interested in the formation of labour organizations.

In the initial years of industrialization, workers did not have voting rights. They had no other way of expressing their anger and despair. In August 1819, there was a big meeting at St. Peters Field in which more than 80,000 people came. They demanded democratic rights like the right to call public meetings, to organize political groups and freedom . of the press. Army rushed to the scene and brutally attacked those attending the meeting. This incident is known as Peterloo Massacre. [Rejecting all the demands of the workers, that year itself the Parliament passed “Six Acts”. The Combination Acts of 1795, which prohibited workers from taking part in political activities, were strictly enforced. However, the Peterloo Massacre made some gains:

1. All the liberal political groups approved the idea of increasing the number of representatives in the House of Commons.

2. In 1824, the Combination Acts were repealed.

Question 12.
For improving the condition of workers, the government carried out some legal steps. Based on this statement, write a note on factory laws.
Answer:
In 1819 laws were passed prohibiting the employment of children below the age of 9 in factories. The working time of children between 9 and 16 was fixed as 12 hours per day. But this rule was not effectively implemented.

Workers in the northern regions of England had. carried out intense protests against the existing conditions. As a result, in 1833, the British Parliament passed a factory law. This law prohibited the employment of children below the age of 9 in silk factories and cotton mills. The time of work for the children was fixed at 8 hours per day. There was also a condition to appoint factory inspectors to ensure that the laws were kept.

Marking the end of 3 decades of protests in 1847 the “Ten Hours Bill” was passed. By this law the working time was limited. Men had to work only for 10 hours.

Plus One History Notes Question 13
“The Industrial Revolution can’t be seen as a revolution.” In a classroom discussion Abnijn. expressed this view. Do you agree with him? Justify.
Answer:
It is true that nowadays nobody sees the Industrial Revolution as a revolution. Revolution means radical and sudden changes in the existing situation. Industrialization did not happen suddenly.

In fact, industrialization was a slow process. It was a continuation of the existing situation. Things like concentration of workers in factories and extensive use of money were already in existence in England. Therefore industrialization cannot be seen as a revolution.

Industrialization in England was a regional process. Until the 19^th century, a major portion of England had no factories or mines. Industrialization was centered around a few cities like London, Manchester, Birmingham, and Newcastle. That means industrialization there was a regional affair. It did not happen throughout the country. Therefore using the term industrial revolution is quite inappropriate.

Question 14.
Adding the word ‘industrial’ to the world ‘revolution’ is inappropriate. Why?
Answer:
Adding the word ‘industrial’ to the world ‘revolution’ is quite inappropriate. It is so because the changes happened not only in the economic and industrial spheres but also in the social arena. For example, two classes came up in society – the capitalists (bourgeoisie) and the workers (labour class).

Students can Download Chapter 4 Poverty Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 4 Poverty

Plus One Economics Poverty One Mark Questions and Answers

Question 1.
The estimated minimum calorie intake for a rural person is:
(i) 2000
(ii) 2100
(iii) 2200
(iv) 2400
Answer:
(ii) 2100

Question 2.
Who publishes the official data on poverty in India?
(i) Ministry of finance
(ii) Finance commission
(iii) Planning commission
(iv) World Bank
Answer:
(iii) Planning commission

Question 3.
Identify an anti-poverty programme in India
(i) REGP
(ii) PMRY
(iii) JRY
(iv) All the above
Answer:
(iv) All the above

Question 4.
Complete the following statement.
(i) Inflation is a situation of general price …………. level.
Answer:
Increasing

Question 5.
According to 2001 census, _____ % of people live.below poverty line in India.
Answer:
26.1%

Question 6.
When was NREGP started in India?
Answer:
On 2^ndFebruary 2006.

Question 7.
Give the new name of NREGP?
Answer:
Mahatma Gandhi National Rural Employment Guarantee Programme (MNREGP).

Plus One Economics Poverty Two Mark Questions and Answers

Question 1.
State an example each of self employment in rural and urban areas.
Answer:
Self employment in rural areas: Rural Employment Generation Program.
Self employment in urban areas : Swarna Jayanti Shahari Rozgar Yojana.

Question 2.
Point out the causes of urban poverty, mm
Answer:
In India, poverty exists both in rural and urban areas. The urban poor are largely the overflow of the rural poor who migrated to urban areas in search in employment and livelihood. The modem industries does not absorb all these surplus labour as they are unskilled. Most of the urban poor are either unemployed or face irregular job opportunities.

Question 3.
What is food for work programme ?
Answer:
The ‘food for work’ programme was started in 1970’s. This programme aims at ensuring food for poor instead of money. It provides assurance to the family of the worker to get minimum food to eat and survive well. Then, this programme can solve the problem of malnutrition and poverty to a great extent.

Question 4.
Differentiate between absolute poverty and relative poverty.
Answer:
Absolute poverty is defined as the inability to achieve the minimum requirement of life, health, and efficiency as a result of very low level of income. On the other hand, relative poverty makes a comparison of relative levels of income of different people or groups of population to determine who is poor.

Plus One Economics Poverty Three Mark Questions and Answers

Question 1.
Find the odd one out

1. PDS, ICDS, MDMS, NREGP
2. Rice, wheat, pulses, rubber
3. RLEGP, PMRY, NREGP, NSO

Answer:

1. NREGP. Others are food security programs
2. Rubber. Others are food crops
3. NSO. Others are employment generating programs

Question 2.
Match the following columns

Answer:

Question 3.
Name a few women oriented poverty eradication programmes in India?
Answer:

• Panchadhara Yojana
• Kamdhenu Yojana
• Apni Beti Apni Dhan Yojana
• Kudumbasree

Question 4.
Define poverty line.
Answer:
Poverty line is defined as per capita consumption expenditure which is required to attain a minimum acceptable standard of living.

Plus One Economics Poverty Four Mark Questions and Answers

Question 1.
Suppose you are from a poor family and wish to get help form the government to setup petty shops. Under which scheme, you will apply for the assistance and why?
Answer:
The following are the measures to solve the problem of poverty in a village like that of mine.

1. creating more employment opportunities in rural areas
2. educating the villagers 1
3. encouraging small scale and cottage industries to generate employment
4. spreading awareness regarding health and sanitation
5.  they should be made aware of the different schemes offered to them by the government
6. the government should provide them with basic amenities such as schools, roads, hospitals communication facilities, etc.

Question 2.
List out the causes responsible for poverty in India.
Answer:
Poverty is explained by individual circumstances and/or characteristics of poor people. Some examples are:

1. low levels of education and skills
2. infirmity, ill health, sickness
3. discrimination.

These can be caused as a result of

1. Social, economic and political inequality
2. Social exclusion
3. Unemployment
4. Indebtedness
5. Unequal distribution of wealth.

Aggregate poverty is just the sum of individual poverty. Poverty is also explained by general, economy-wide problems, such as:

1. Low capital formation
2. Lack of infrastructure
3. Lack of demand
4. Pressure of population
5. Lack of social/welfare nets.

Question 3.
Give the year of starting the following programmes.
i) SGSY
ii) RLEGP
iii) NREG Act
iv) SJSRY
Answer:

Question 4.
Critically evaluate the poverty alleviation programmes in India.
Answer:
A. Critical Assessment of Poverty Alleviation Programmes:
Through the policy towards poverty alleviation has evolved in a progressive manner but over the last five and a half decades it has not undergone any radical transformation. Scholars state three major areas of concern which prevent the success implementation of the programs, they are:

1. Unequal distribution of land and other assets due to the benefits have been availed by the non-poor.

2. In comparison to the magnitude of poverty the amount of resources allocated for these programmes is not sufficient,

3. These programs depend mainly on government and bank officials for their implementation since such officials are ill-motivated, inadequately trained, corruption-prone and vulnerable to pres-sure from a variety of local elites, the resources are inefficiently used and wasted.

Plus One Economics Poverty Five Mark Questions and Answers

Question 1.
Illustrate the difference between rural and urban poverty. Is it correct to say that poverty has shifted from rural to urban areas?
Answer:
The features of rural poverty are :

• Open, under disguised unemployment, are found simultaneously in rural areas
• It is difficult to differentiate between open unemployment and underemployment in rural areas
• No or meager facility of education, employment, social welfare, etc lead to poverty among the masses
• Rural people posses few assets and many are landless

The features of urban poverty are:

• Open unemployment is generally found
• One can differentiate between open and disguised unemployment
• Good facility of education, drinking water, sanitation, etc make the standard of living of urban people high
• Urban people posses many assets Yes, poverty has shifted from rural to urban areas.

This is clear from the fact that in n1973-74 more than 80% of the poor resided in rural areas but in 1999 – 2000, this proportion has reduced to 75%. This means that poverty has shifted from rural to urban areas. In the 1990s the absolute number of the poor in the rural areas has declined whereas the number of poor in urban areas has increased.

Question 2.
Write full form of the following.

1. PMRY
2. SGRY
3. NSSO
4. SJSRY
5. JGSY

Answer:

1. PMRY – Prime Minister’s RozgarYojana.
2. SGRY – Sampoorna Grameena RozgarYojana
3. NSSO – National Sample Survey Organisation
4. SJSRY – Swama Jayanthi Shahari RozgarYojana
5. JGSY – JawaharGramSamridhiYojana

Question 3.
Give the year of starting the following programmes.

1. Mid-day meals scheme
2. Aam Admi Bima Yojana
3. JLNNURM
4. Bharat Nirman
5. VAMBAY.

Answer:

1. 1995
2. 2007
3. 2005
4. 2005
5. 2001

Question 4.
Suppose you are a resident of a village. Suggest a few measures to solve the problem of poverty in your locality.
Answer:
The following are the measures to solve the problem of poverty in a village like that of mine.

1. creating more employment opportunities in rural areas
2. educating the villagers
3. encouraging small scale and cottage industries to generate employment
4. spreading awareness regarding health and sanitation
5. they should be made aware of the different schemes offered to them by the government
6. the government should provide them with basic amenities such as schools, roads, hospital communication facilities, etc.

Question 5.
Govt, of India, has introduced a number of antipoverty programmes. Do you think that these anti-poverty programmes are sufficient for reducing our country’s poverty? Justify your answer.
Answer:
The govt, implement many programmes to reduce poverty. REGP, PMRY, SJSRY, SJSY, MNREGS are few among them. The rate of poverty has been mitigated due to the implementation of these programmes. However, there are a lot of problems associated with these policies. They are given below.

1. The amount of resources allocated for these programmes is not sufficient.
2. The effectiveness of the implementation of these programmes depends mainly on government and bank officials. May such officials are ill-motivated, inadequately trained and corrupt. So the resources reach the hand of the people who do not reserve it.
3. There is non-participation of local-level institutions in programme implementation.
4. The government also failed to address the vast majority of vulnerable people who are living on or just above the poverty line.

Plus One Economics Poverty Eight Mark Questions and Answers

Question 1.
Discuss the various measures taken by the government to solve the problem of poverty in India.
Answer:
The poverty reduction approach of the government near of three dimensions.
a. Growth oriented approach.

b. Income and employment creation specifically for the poor.

c. Providing basic amenities to the people. Growth-oriented approach is based on the expectation that the effects of economic growth-rapid increase in Gross Domestic Income and Per Capita Income – would spread to all sections of society and will trickle down to the poor sections also.

The approach of income and employment creation specifically for the poor initiated from the third five-year plan. The programmes under the approach include food for work (1970) self-employment programmes like RLEGP, PMRY SJSRY. The Khadi and Village Commission implements these programmes. The government also started wage employment programme like national food for work programme, SGSRY, MNREGS, etc.

1. The Rural Landless Employment Guarantee Programme (RLEGP):
This programme was launched on 15th August 1983 to supplement NREP. This is a centrally sponsored scheme with 100 percent fund by the union government.

2. The PMRY:
GA was launched on 1^st April 2000. The programme aims at providing the housing needs of rural people. Providing basic amenities includes Integrated Child Development Scheme, Mid-day Meal Scheme, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Gramodaya Yojana, ValmikiAmbedkarAvasYojana, etc.

3. Integrated Child Development Schemes (ICDS):
A nutrition programme meant for children below 6 years of age, pregnant and lactating women.

4. Mid-day Meal at School:
Mid-day Meal at School is in operation in several states. The programme was launched in all India level on 15^th August 1995.

Students can Download Chapter 3 Liberalisation, Privatisation and Globalisation -An Appraisa Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 3 Liberalisation, Privatisation and Globalisation -An Appraisal

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal One Mark Questions and Answers

Question 1.
India started economic reforms in:
(i) 1990
(ii) 1991
(iii) 1992
(iv) 1995
Answer:
(ii) 1991

Question 2.
In which year WTO was formed?
(i) 1990
(ii) 1992
(iii) 1995
(iv) 2000
Answer:
(iii) 1995

Question 3.
Which among the following is NOT a pillar of economic reforms
(i) Liberalisation
(ii) Privatisation
(iii) Nationalisation
(iv) Globalisation
Answer:
(iii) Nationalisation

Question 4.
Odd one out and justify.
(Privatisation, Nationalisation, Liberalisation, Globalisation)
Answer:
Nationalization. Others are parts of economic reforms.

Question 5.
How many countries are members of WTO?
Answer:
133 countries are members of WTO (subject to change)

Question 6.
Find the odd one out.
SBI, Punjab National Bank, Andhra Bank, Union Bank of India.
Answer:
Andhra Bank. Others are national banks.

Question 7.
What is BPO?
Answer:
BPO stands for Business Process Outsourcing.

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal Two Mark Questions and Answers

Question 1.
Point out major factor responsible for the high growth of service sector?
Answer:
The growth rate of service sector was very high in India compared to other sectors. After adopting new economic policy, the growth rate was 8.2%. The liberalisation and privatisation policy are responsible for the fast growth rate in service sector.

Question 2.
What does foreign direct investment mean?
Answer:
if refers to investment directly undertaken by the foreign companies and nationals in various sectors of the economy.

Question 3.
What is the meaning of disinvestment of public sector unit?
Answer:
The sale of part of government shareholding in public sector undertakings to financial institutions, mutual funds, and public is known as disinvestment of PSUs.

Question 4.
State true or false

1. WTO was found in 1995 as successor organisation of G#TT.
2. India signed NEP in 1991.

Answer:

1. True
2. True

Question 5.
Write full form of the following,

1. IBRD
2. Fll
3. IMF
4. GATT

Answer:

1. IBRD – International Bank for Reconstruction and Development.
2. Fll – Foreign Institutional Investment
3. IMF – International Monetary Fund.
4. GATT – General Agreement on Tariff and Trade

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal Three Mark Questions and Answers

Question 1.
Match the following columns

Answer:

Question 2.
Give examples for Nationalized bank, Private bank and Private Foreign Bank.
Answer:
Nationalized banks

• BankofBaroda
• Union bank of India
• Punjab National bank

Private banks

• Andhra Bank
• Oriental Bank of Commerce
• Punjab and Sindh Bank

Private Foreign Banks

• Deutsche Bank
• HSBC

Question 3.
The industrial sector has performed poorly during reform period’. Justify.
Answer:
The industrial sector has performed poorly in the re-form period due to the following reasons :

1. The shortage of electricity and raw materials affect the quality of goods produced.
2. NEP has seriously affected local industrial production.

Question 4.
Classify the following as direct tax and indirect tax. (Sales tax, Property tax, VAT, Customs duty, Income tax, Corporate tax)
Answer:

Question 5.
‘NEP has impact on poverty’. Do you agree? Substantiate.
Answer:
Yes, NEP has impact on poverty. NEP cannot solve the problem of poverty. It seems that it will increase the problem of poverty. The reason is that there will be reduction of public expenditure on projects benefiting the poor. It will also reduce subsidy on food and agricultural product. At the same time, the government will raise the prices of essential products used by the poor. Ail will lead to increase in poverty.

Question 6.
At present how many industries are reserved for public sector in India? Which are they?
Answer:
3 industries. They are:

1. Atomic energy
2. Minerals enlisted under schedule of atomic energy.
3. Rail transport.

Question 7.
Mention the monetory reforms under new economic policy?
Answer:

1. Re-constitution of banking system
2. Free determination of interest rate
3. Reduction of liquidity ratio
4. Improvement in banking system.
5. More freedom to banks
6. Abolition of direct credit program.

Question 8.
Do you think that “navaratna policy” of the government helps in improving the performance of Public Sector undertakings in India? Substantiate.
Answer:
In 1996, in order to improve efficiency, infuse professionalism and enable them to compete more effectively in the liberalized global environment, the government chose nine PSUs and declared them as navaratnas.

They were given greater managerial and operational autonomy, in taking various decisions to run the company efficiently and thus increase their profits. Greater operational, financial and managerial autonomy had also been granted to 97 other profit-making enterprises referred to as miniratnas.

The granting of navaratna status resulted in better performance of these companies. Gradually the government has decided to help these Navaratnas in becoming independent so that they can expand themselves in the global markets and raise resources by themselves from financial markets.

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal Four Mark Questions and Answers

Question 1.
State whether true or false

1. ICICI is a public sector bank
2. ONGC is a Navaratna company
3. Quota is a non-tariff barrier
4. India faced balance of payment crisis in 1991

Answer:

1. False. ICICI is a private sector bank
2. True
3. True
4. True

Question 2.
What are the causes of globalisation?
Answer:
The major causes of globalisation are given below:

1. rapid growth of research and development.
2. Improvement in communication facilities.
3. deregulation of money market.
4. removal of artificial barriers.

Question 3.
“Agricultural sector appears to be adversely affected by the reform process” do you agree? Give reasons.
Answer:
Yes, Agricultural sector appears to be adversely affected by the reform process. The agricultural sector has not been able to be benefited by the reform process, rather the growth rate has decelerated. Public investment in agriculture sector has been reduced during the reform period. Further, the removal of fertilizer subsidy severely affected the mall and marginal farmers

Due to commencement of WTO a lot of policies have changed which have adversely affected the Indian farmers. Moreover, because of export oriented policy in agriculture, there has been a shift from production for the domestic market towards production for export market focusing on cash crops instead of food grains. This has resulted in the price rise of food grains. In short India’s agricultural sector is badly affected by the reform process.

Question 4.
“New Economic Policy of 1991 was an inevitable phenomenon”. Do you agree? Justify.
Answer:
Yes, I agree.
India at the time of independence, adopted a mixed economy framework and accordingly rules and laws were framed which aimed at controlling and regulating the economy. However, in the long run, theses ended up hampering the process of growth and development.

In 1991 India faced an acute economic crisis relating to external debt. The government was not able to make repayments on its borrowings from abroad. Foreign exchange reserves dropped at such a level that it was not sufficient for even a fortnight. Prices of essential goods were rising high. All these factors led to the need for reforms to be introduced in India.

Question 5.
Prepare a note on WTO.
Answer:
The WTO was founded in 1995 as the successor organization to the General Agreement on Trade and Tariff (GATT). GATT was established in 1948 with 23 countries as the global trade organization to administer all multilateral trade agreements by providing equal opportunities to all countries in the international market for trading purposes.

WTO is expected to establish a rule based trading regime in which nations cannot place arbitrary restrictions on trade. In addition, its purpose is also to enlarge production and trade of services, to ensure optimum utilization of world resources and to protect the environment.

The WTO agreements covertrade in goods as well as services to facilitate international trade (bilateral and multilateral) through removal of tariff as well as non-tariff barriers and providing greater market access to all member countries.

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal Five Mark Questions and Answers

Question 1.
Do you think outsourcing is good for India?
Answer:
Outsourcing is one of the important outcomes of the globalization process. In outsourcing, a company hires regular services from external sources, mostly from other countries, which was previously provided internally or from within the country (like legal advice, computer service, advertisement, security each provided by respective departments of the company).

As a form of economic activity, outsourcing has intensified, in recent times, because of the growth of fast modes of communication, particularly the growth of Information Technology (IT). Most multinational corporations, and even small companies, are outsourcing their services to India where they can be availed at a cheaper cost with reasonable degree of skill and accuracy.

The low wage rates and availability of skilled manpower in India have made it a destination for global outsourcing in the post-reform period. Thus I think in this reform period outsourcing is good for India.

Question 2.
Prepare a note on privatisation of Indian economy?
Answer:
Privatisation means removing strict control over private sector and making them free to take necessary decisions. Since independence, we accorded top priority to the public sector but the desired results could not be achieved with the encouragement of the public sector. Now the new economic policy tries to expand private sector. In order to encourage private sector following measures have been adopted.
Measures to encourage Private Sector in the economy are the following

1. Reduction in the number of reserved public sector industries. The number of Public Sector industries from 17 to 4.
2. Increasing the share of private sector investment.
3. Selling the share of public enterprises.
4. No insistance on conversion. Now the financial corporation can not insist the industries for conversion of their loans into equity shares.

The government has also made attempts to improve the efficiency of PSUs by giving them autonomy in taking managerial decisions.

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal Eight Mark Questions and Answers

Question 1.
Assess the performance of Indian economy during reforms.
Answer:
The growth of GDP measured from 5.6 percent during 1980-91 to .8.2% during 2007-12. The foreign exchange reserve and foreign direct investment increased rapidly. FDI increased from about US $100 million in 1990 -91 to US$ 400 billion in 2010 -11.

Foreign exchange reserve increased from US$6 billion in 1990-91 to US $400 billion 2011 -12. During this period Indian exports of auto parts, engineering goods, IT software and textiles, increased rapidly. But the reform process have been widely criticized on the following grounds.

Even though there has been an increase in GDP, the reform led growth has not generated sufficient employment opportunities Growth rate in agriculture has been decelerating. Public investment in agriculture sector has been reduced in the reform period. Industrial growth also has been decelerated. Disinvestment of PSUs could not reach near the target.

The tax reduction in the reform period, aimed at yielding larger revenue and to cut tax evasion, have not resulted in increase in tax revenue. The process of globalization has produced positive as well as negative results for both India and other countries.

Globalization could be seen as an opportunity is term of greater access to global markets, high technology, etc. Some other economists argue that globalisation is a strategy of the developed countries to expand their markets in other countries.

Question 2.
Many scholars argue that globalization is a threat as it reduces the role of the state in many sectors.
Some counter argue that it is an opportunity as it opens up markets to compete in and capture. Prepare a Debate Report on “Globalization is a threat or blessing”.
Answer:
lips “Globalization is a threat or blessing”.
The plus one commerce batch of (Name of school) conducted a debate on the topic Globalization is a threat or blessing on 16/08/2018 at 10.0 a.m with the ample guidance of our economics teacher. Our class was divided into two groups to cover the entire area of the topic. Each group presented relevant points to support their views.

1. Arguments in favors of Globalization

• As a result of globalization, the growth rate of the economy has gone up. Production of both agricultural and industrial sectors increased
• As a result of globalization, export growth rate has increased, foreign direct investment has risen and the ratio of external debt to GDP has also fallen
• Globalization will create pressures of competition which help in improving efficiency level
• The New Economic Policy has helped to tide over the immediate balance of payments crisis

2. Arguments against Globalization

• Globalization process neglected the agricultural sector compared to other sectors
• More dependence on foreign debt will put India into debt trap
• The globalization process has given more importance to foreign technology. This will hurt indigenous know-how
• The globalization has encouraged the production of comforts and luxuries.

Question 3.
Prepare a seminar report on the topic “New Economic Policy – 1991 ”
Answer:
“New Economic Policy -1991”
Introduction:
The plus one commerce batch of (Name of school) conducted a seminar on the topic “New Economic Policy – 1991” on 16/08/2018 at 11.0 a.m with the ample guidance of our economics teacher. Our class was divided into three groups to cover the entire area of the topic. Each group presented one objective each. They focused on the area given to them and the group leader presented the seminar paper after required preparation.

Content:
LIBERALISATION:
Liberalization was introduced to put an end to these restrictions and open up various sectors of the economy. Though a few liberalization measures were introduced in 1980s in areas of industrial licensing, export-import policy, technology up-gradation, fiscal policy, and foreign investment, reform policies initiated in 1991 were more comprehensive.

Let us study some important areas such as the industrial sector, financial sector, tax reforms, foreign exchange markets and trade and investment sectors which received greater attention in and after 1991.

The features of liberalization are:

• Deregulation of Industrial Sector
• Financial Sector Reforms
• Tax Reforms
• Foreign Exchange Reforms
• Trade and Investment Policy Reforms

PRIVATISATION:
It implies shedding of the ownership or management of a government-owned enterprise. Government companies can be converted into private companies in two ways

1. by withdrawal of the government from ownership and management of public sector companies and or
2. by outright sale of public sector companies. Privatization of the public sector undertakings by selling off part of the equity of PSUs to the public is known as disinvestment.

The purpose of the sale, according to the government, was mainly to improve financial discipline and facilitate modernization. It was also envisaged that private capital and managerial capabilities could be effectively utilized to improve the performance of the PSUs.

GLOBALISATION:
Globalization is the outcome of the policies of liberalization and privatization. Although globalization is generally understood to mean integration of the economy of the country with the world economy, it is a complex phenomenon. It is an outcome of the set of various policies that are aimed at transforming the world towards greater interdependence and integration.

It involves creation of networks and activities transcending economic, social and geographical boundaries. Globalization attempts to establish links in such a way that the happenings in India can be influenced by events happening miles away. It is turning the world into one whole or creating a borderless world

Conclusion:
All the three groups presented their topics with necessary facts and figures. After the presentation, there was a question-answer session. The active participation of everyone made this session live and interesting. On the whole, the seminar was a big success.

Students can Download Chapter 2 Indian Economy 1950-1990 Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 2 Indian Economy 1950-1990

Plus One Economics Indian Economy 1950-1990 One Mark Questions and Answers

Question 1.
The Planning Commission was set up on
(i) 1^st January 1950
(ii) 1^st March 1950
(iii) 15^th March 1950
(iv) 1^st April 1950
Answer:
(iii) 15^th March 1950

Question 2.
Who is the architect of Indian planning?
(i) K.N. Raj
(ii) PC. Mahalanobis
(iii) R.C. Desai
(iv) Dadabhai Navoroji
Answer:
(ii) PC. Mahalanobis

Question 3.
India is ____ type of economic system.
(i) Capitalist
(ii) Socialist
(iii) Mixed economy
(iv) None of these
Answer:
(iii) Mixed economy

Question 4.
Green revolution is related to:
(i) Food grain production
(ii) Cash crop production
(iii) Milk production
(iv) All the above
Answer:
(i) Food grain production

Question 5.
Who is considered as the architect of Indian Planning?
Answer:
P C Mahalanobis is considered as the architect of Indian Planning.

Question 6.
White revolution deals with ____.
Answer:
Milk

Question 7.
How many annual plans were implemented in India?
Answer:
6 Annual Plans.

Plus One Economics Indian Economy 1950-1990 Two Mark Questions and Answers

Question 1.
Point out the main objective of industrial licencing.
Answer:
The aim of industrial licencing was establishment, expansion, and ownership of private industries according to priorities of five year plans. It also aims to check the monopoly tendency in industries. Another objective is to remove the regional disparities of growth.

Question 2.
Define economic planning.
Answer:
Economic planning means utilisation of country’s resources into different development activities in accordance with national priorities.

Question 3.
Name the chairman and deputy chairman of NITI AYOG.
Answer:

• Chairman – Narendra Modi (Prime Minister).
• Deputy Chairman – Arvind Panagaria.

Question 4.
Analyze the following table and draw inference.

Answer:
The above table shows the contribution of agriculture, industry and service sectors to India’s GDP. It makes a comparative analysis of 1950-51 and 1990-91. From the data, it is clear that at the time of independence, agriculture was the major contributor to our GDP followed by service sector and industrial sector.

This picture has undergone change by 1990-91. The service sector is the major contributor GDP during 1990-91. The negative significance of agriculture slightly declined which is a good sign of development.

Plus One Economics Indian Economy 1950-1990 Three Mark Questions and Answers

Question 1.
Why was it necessary for a developing country like India to follow self-reliance as a planning objective?
Answer:
Our first seven five year plans gave importance to ‘self reliance’. This means averting imports of those goods which could be produced in India itself. When India becomes self reliant, we can save foreign exchange and can promote exports.

Question 2.
Do you think that Land Reforms were successfully implemented in all the States of India? Substantiate your view.
Answer:
No. Land Reforms were not successfully implemented in all the States of India. Land reforms were successful in Kerala and West Bengal because these states had governments committed to the policy of land to the tiller. Unfortunately, other states did not have the same level of commitment and vast inequality in landholding continues to this day.

Question 3.
Find the odd one out

1. Modernization, growth, equity, imports
2. Chemical fertilizers, HYV seeds, licensing, irrigation
3. Licensing, protection, abolition of intermediaries, reservation for small scale industry.

Answer:

1. Imports. Others are objectives of five year plans
2. Licensing. Others relate to green revolution
3. Abolition of intermediaries. Others relate to industrial policy

Question 4.
Given below are some names of the countries. Classify them into a fable based on the economic system they follow.
(USA, Germany, Cuba, India, China, Srilanka, UK, Venezuela, Pakistan)
Answer:

Question 5.
Match the following columns.

Answer:

Question 6.
‘Growth with equity’ is an objective of Indian planning. Justify.
Answer:
Growth means increase in the country’s capacity to produce the output of goods and services and equity means equality. Growth with equity is an important objective of our planning. By this, we mean that the government should ensure that the benefit of economic growth reaches the poor sections of the society. It also aims that every citizen should be able to meet the basic requirements such as food, shelter, education, health care, etc.

Question 7.
What is the importance of agriculture in Indian economy?
Answer:
Agriculture is considered as the backbone of the Indian economy. It contributes about 25% of national income. Moreover, about 2/3 of our total population depends on agriculture for their living. Therefore, agriculture plays an important role in the economic development of our country.

Question 8.
Give the main objectives of industrial policy 1956?
Answer:
The main objectives of Industrial Policy 1956 are:

• rapid industrial development.
• rapid growth of public sector.
• reduction in inequalities of income and wealth.

Plus One Economics Indian Economy 1950-1990 Four Mark Questions and Answers

Question 1.
“Gross Domestic Product (GDP) is a good indicator of economic growth of a country”. Comment.
Answer:
A steady increase in the Gross Domestic Product is considered a good indicator of economic growth. The gross domestic product is the market value of all goods and services produced in the country during a year. If the value of GDP is more, it will be divided among the number of people. It is necessary to produce more goods and services if people of India are to enjoy a more rich and varied life.

The GDP of a country is derived from the different sectors of the economy, namely the agricultural sector, the industrial sector, and the service sector. The contribution m|de by each of these sectors makes up the sectoral composition of the economy.

Question 2.
Explain the need and type of land reforms implemented in the agricultural sector.
Answer:
independence, the land tenure system was dominated by the intermediaries who merely collected rent from the tillers without contributing towards improvements on the farm. This resulted in low production from agriculture and forced India to import food. This called for an urgent need of a land reform system.
The types of land reform implemented are:

• Abolition of intermediaries
• Making the tillers the owners of land
• Land ceiling i.e., fixing the size of landholding.

Question 3.
Prepare a table showing the plans of India and the years of their implementation?
Answer:

Question 4.
Match the following

Answer:

Plus One Economics Indian Economy 1950-1990 Five Mark Questions and Answers

Question 1.
What is green revolution? How did it benefit the farmers?
Answer:
Significant and continuous rise in agricultural production with the use of fertilizers, HYV seeds and irrigation facilities is known as Green Revolution.

In India, green revolution was executed in two phases. The first phase was from 1965-75. This phase concentrated the crop wheat and was confined to affluent states. The second phase was from 1975-85. The phase concentrated on a variety of crops and was implemented in all Indian states.
The benefits of green revolution:

1. Self-sufficiency in food grain.
2. Living standards of farmers increased
3. Large marketable surplus
4. The price of food grain fell down and consumers were benefited.

Question 2
Prepare a debate report on the topic “Is agriculture subsidy necessary”?
Answer:
Arguments in favour of giving subsidies

• Subsidies provide an incentive for adoption of the new technology by farmers in general and small scale farmers in particular
• Subsidies are needed to encourage farmers to test new technology
• Subsidies help small farmers to continue production so that food security of the nation can be ensured

Arguments against giving subsidies

• Subsidies very often do not benefit the target group
• It is a huge burden on the government’s finances
• Subsidies provide an incentive for wasteful use of resources.

Question 3.
Discuss the rationale for import substitution as a foreign trade policy measure?
Answer:
The industrial policy that we adopted was closely related to the trade policy. In the first seven plans, trade was characterized by what is commonly called an inward-looking trade strategy. Technically, this strategy is called import substitution. This policy aimed at replacing or substituting imports with domestic production.

For example, instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself. In this policy, the government protected the domestic industries from foreign competition. Protection from imports took two forms: tariffs and quotas.

Tariffs are a tax on imported goods; they make imported goods more expensive and discourage their use. Quotas specify the quantity of goods which can be imported. The effect of tariffs and quotas is that they restrict imports and, therefore, protect domestic firms from foreign competition.

Question 4.
Small scale industries play a vital role in Indian economy. Give reasons.
Answer:
Small-scale industry’ is defined with reference to the maximum investment allowed on the assets of a unit. This limit has changed over a period of time. In 1950 a small-scale industrial unit was one which invested a maximum of rupees five lakh; at present, the maximum investment allowed is rupees one crore.

It was believed that small-scale industries are more ‘labour intensive’ i.e., they use more labour than the large-scale industries and, therefore, generate more employment. But these industries cannot compete with the big industrial firms; it is obvious that development of small-scale industry requires them to be shielded from the large firms.

For this purpose, the production of a number of products was reserved for the small-scale industry the criterion of reservation being the ability of these units to manufacture the goods. They were also given concessions such as lower excise duty and bank loans at lower interest rates. Therefore it can be concluded that small scale industries play a vital role in an economy like India.

Plus One Economics Indian Economy 1950-1990 Eight Mark Questions and Answers

Question 1.
Prepare a seminar report on the “Goals of five year plans pursued till 1991”. [Hint: A Seminar report should contain the title, introduction, content, and conclusion].
Answer:
“Goals of five year plans pursued till 1991”.
Introduction:
The plus one commerce batch of (Name of school) conducted a seminar on the topic Goals of five year plans pursued till 1991 on 16/08/2018 at 11.0 a.m with the ample guidance of our economics teacher. Our class was divided into four groups to cover the entire area of the topic. Each group presented one objective each. They focused on the area given to them and the group leader presented the seminar paper after required preparation.

Content:
A plan should have some clearly specified goals. The goals of the five-year plans are growth, modernization, self-reliance, and equity.

1. Growth:
It refers to increase in the country’s capacity to produce the output of goods and services within the country. It implies either a larger stock of productive capital, or a larger size of supporting services like transport and banking, or an increase in the efficiency of productive capital and services.

A good indicator of economic growth, in the language of economics, is steady increase in the Gross Domestic Product (GDP). The GDP is the market value of all the goods and services produced in the country during a year. The GDP of a country is derived from the different sectors of the economy, namely the agricultural sector, the industrial sector, and the service sector. The contribution made by each of these sectors makes up the structural composition of the economy.

2. Modernization:
To increase the production of goods and services the producers have to adopt new technology. For example, a farmer can increase the output on the farm by using new seed varieties instead of using the old ones. Similarly, a factory can increase output by using a new type of machine. Adoption of new technology is called modernization.

However, modernization does not refer only to the use of new technology but also to changes in social outlook such as the recognition that women should have the same rights as men. In a traditional society, women are supposed to remain at home while men work. Modern society makes use of the talents of women in the workplace in banks, factories, schools, etc. and such a society will be more civilized and prosperous.

3. Self-reliance:
A nation can promote economic growth and modernization using its own resources or by using resources imported from other nations. The first seven five year plans gave importance to self-reliance which means avoiding imports of those goods which could be produced in India itself.

This policy was considered a necessity in order to reduce our dependence on foreign countries, especially for food. It is understandable that people who were recently freed from foreign domination should give importance to self-reliance.

4. Equity:
Now growth, modernization, and self-reliance, by themselves, may not improve the kind of life which people are living in A country can have high growth; the most modem technology developed in the country itself, and also has most of its people living in poverty.

It is important to ensure that the benefits of economic prosperity reach the poor sections as well instead of being enjoyed only by the rich. So, in addition to growth, modernization, and self-reliance, equity is also important every Indian should be able to meet his or her basic needs such as food, a decent house, education, and health care and inequality in the distribution of wealth should be reduced.

Conclusion:
All the four groups presented their topics with necessary facts and figures. After the presentation, there was the question-answer session. The active participation of everyone made this session live and interesting. On the whole, the seminar was a big success.

Question 2.
Prepare a note on the achievements and failures of economic planning in India?
Answer:
A. Achievements of Planning:
1. Rise in national income:
These has been significant increase in national income during the plan period. The national income increased by an average of above 4% during economic planning.

2. Increase in per capita income:
Prior to independence, rate of increase in per capita income had been almost zero. But during the period of planning, per capita income increased at the rate of 2% p.a.

3. Increase in rate of capital formation:
Capital formation plays a significant rule in the economic growth of a country. During five year plans rate of capital formation has significantly increased. As the rate of capital formation depends on the rate of saving and investment, there has been considerable increase in the rate of saving and investment.

4. Institutional reforms in agriculture and Green Revolution:
Plans have contributed to the development of agriculture in two ways:

• Land reforms have been introduced in agriculture.
• Since 1966, stress has been given another technological advancement of agriculture. It resulted into Green revolution. During the period of planning, production of food grains has trebled.

5. Development of industries:
Industrial sector has received a lot of encouragement as a result of planning. Basic and capital goods industries like iron and steel, machinery, chemical fertilizers, etc. have developed adequately. During the period of planning, growth rate of industrial production has been around 6.9% per annum industrial production during the First Five Year Plan increased by 8%.

6. Development of Economic Infrastructure :
Economic infrastructure mainly includes transport, means of communication, irrigation facilities and the generation capacity of power, etc. During the period of planning, economic infrastructure has developed considerably.

7. Development of Social Infrastructure:
During the period of planning, country’s social services like education, health, and medical facilities, family planning, etc. also developed appreciably.

8. Employment:
Serious efforts have been made during plans to increase employment opportunities.

B. Failures of Economic Planning:
The following are the main features of economic planning in India.
1. No substantial increase in the Standard of Living:
All the five-year plans of India aimed at raising the standard of living of the people.

2. Rise in Prices:
Price stability has been one of the objectives of each Five Year Plans in India. But almost all the plans witnessed considerable rise in price level. First Plan is the only exception when price level comes down, in all other plans the prices recorded a steep rise.

3. Increase in Unemployment:
Unabated rise in unemployment was witnessed during the period of planning.

4. Less Growth in Production:
In the Five Year Plans, growth rate of production was slow in many states. Priority should have been given to the development of agriculture in all the plans, but it was not done.

5. Inadequate Development of Infrastructure:
Development of infrastructure like electricity, roads, transport, education, etc. ramained inadequate during the period of planning.

6. Inequality in Distribution of Income and Wealth:
The main objective of the Five Year Plan is to minimise inequality in distribution of income and wealth but during the period of planning the problem of inequality further.

7. Inefficient Administration:
An expert team of U.N.O. observed that one of the main shortcomings of Indian planning has been with reference to its implementation.

8. Lack of Strong Foundation:
Despite completion of Nine Five Year Plans, economic base could not acquire strength. Even now use depend heavily on rainfall for agricultural production. Due to the failure of monsoon in 1965-66, 1966 – 67, 1979 – 80 and 1982 – 83, the entire economy was thrown out of gear.

You can Download Political Theory – An Introduction Questions and Answers, Notes, Plus One Political Science Chapter Wise Questions and Answers Kerala Chapter 1 help you to revise complete Syllabus and score more marks in your examinations.

Kerala one Two Political Science Chapter Wise Questions and Answers Chapter 1 Political Theory: An Introduction

Political Theory: An Introduction Questions and Answers

Plus one Political Science Notes in English Question 1
What is Politics?

Answer:
The word politics was first used by Aristotle, who is the Father of Political Science. The Greek ‘polis’ means related to city. It is from this word, ‘politics’ came. It actually means the ideas regarding the administration of the City-States of ancient Greece. In the modern period, politics is a political art.

Question 2.
What do you mean political theory?

Answer:
Political theory or political vision is the ideas regarding the relations between men, the social creature, and the Nation. In Political Theory we learn the following:
a) Studies about Man.
b) Studies regarding administration and government.
c) Studies about political dynamics.
d) Studies about political philosophy.
e) Studies about International Relations.

Plus one Political Science Question .3
Who is the father of political science?

Answer:
Aristotle.

Political Science Plus one Notes Question .4
Point out the advantages of studying Political Theory.

Answer:
There is much importance in the study of Political Theory. The knowledge about politics, which controls a person’s activities even before the start of his life to even after his death is inevitable. Its importance can be given thus:
a) Political theories give a philosophical base for the political activities.
b) Political theories help in placing administration (government), rule of law, dispensation of justice, etc. which are essential features of a nation, in a definite and organized framework.
c) They help in understanding and evaluating past experiences and historical events.
d) It is through political theories that technical terms are interpreted and they are given precision and clarity.
e) Political theories support the building of a political system beyond the consideration of time and terrain to ensure a creative political life.
f) Philosophy is the highest form of human thought and wisdom. Political theories are the essence of constant searches trying to elevate human life to an ideal level of perfection.
g) All the creative and practical human activities need two essential things: the support of moral values and a theoretical base. Political theories make these available.

Question .5
In Political theory, we study several things. Prepare a flow chart showing them.

Answer:

Question 6.
Distinguish between Politics and Political Theory.

Answer:
The word politics was first used by Aristotle, who is the Father of Political Science. The Greek ‘polis’ means related to city. It is from this word, ‘politics’ came. It actually means the ideas regarding the administration of the City-States of ancient Greece. In the modern period, politics is a political art. Political theory or political vision is the ideas regarding the relations between men, the social creature, and the Nation. In Political Theory we learn the following:
f) Studies about Man.
g) Studies regarding administration and government.
h) Studies about political dynamics,
i) Studies about political philosophy.
j) Studies about International Relations.

Question 7.
Prepare a note on the origin and growth of political theory.

Answer:
Origin and Growth of Political Theory: Plato records that discussions regarding Political theories were started by Socrates. Socrates made a start seeking the meaning of justice among the Athenian citizens. Plato’s search was continued by his disciple Aristotle. It is therefore said that political theory started in the Western world with Socrates and Plato. Thinkers from Aristotle to Marx have given significant contributions to the growth of political theory.
In political science the following areas have the most important places:
a) Political theory handles ideas and principles that formulate the Constitution, government and social life.
b) It examines the importance of ideas like Rule of Law, Division of Authority and Judicial Review.
c) It explains the meaning of freedom, equality, democracy, and secularism.

Question 8.
What do we study in political theory?

Answer:
We study the following in political theory:
a) Political theory handles ideas and principles that formulate the Constitution, government and social life.
b) It examines the importance of ideas like Rule of Law, Division of Authority and Judicial Review.
c) It explains the meaning of freedom, equality, democracy, and secularism.
d) It also discusses the origin of government, development, formation, activities, the relations between people and the government and people’s rights and responsibilities.

Question 9.
Every individual is directly or indirectly involved in the politics of a country. Do you agree with this statement? Substantiate.

Answer:
I agree. In our day-to-day lives, our activities are controlled by-laws made by the government. Giving taxes, obeying the law, etc. are fundamental things that each person has to do. We play our role in politics by voting in the election and through our Right to Expression.

Question 10.
Explain how political theory can be put into practice.

Answer:
Political theories are based on political concepts like liberty, equality, citizenship, justice, development, nationality and secularism. Government originated, is existing and its future working, etc. are for putting into practice these political theories. Democratic governments exist to ensure that there is liberty, equality, and fraternity in the society.

Question 11.
Why should we study political theory?

Answer:
The study of political theories is very important. They are essential for all kinds of people like political workers, bureaucrats who make policies, students of political theories, advocates and judges who interpret the Constitution and laws, public workers who expose exploitation and fight for new rights and the students who learn about political concepts. Firstly, all the students will have to choose a profession in the future. The knowledge about political theories is relevant to all professions.

All those who study mathematics will not become mathematicians or engineers. But, obviously, knowledge about mathematics is essential in our everyday lives. Secondly, students of today are also going to be adults with voting rights tomorrow. They will have to take decisions on many issues. Knowledge about political theories and institutions will help them to act responsibly. Thirdly, Political theories motivate them to examine our ideas and emotions regarding political matters. Fourthly, Political theories help them to think systematically about political concepts.

Question 12.
deals with things like Liberty, Equality, and Justice which are values of political life.

Answer:
Political theory

Plus one Politics Notes Question 13.
Who is the person that contributed greatly to the growth of political theory?
a) Socrates
b) Plato
c) Rousseau
d) All of the above

Answer:
All of the above persons

HSSLive Political Science Class 11 Question 14.
Who was the first person to argue that liberty was a fundamental right of all human beings?

Answer:
Rousseau

HSSlive Political Science Notes Question 15.
Who argued that equality is as important as liberty?

Answer:
Marx

You can Download Internal Trade Questions and Answers, Notes, Plus One Business Studies Chapter Wise Questions and Answers Kerala Chapter 10 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Chapter Wise Questions and Answers Chapter 10 Internal Trade

1 Mark Questions and Answers

Question 1.
…….. is a trade that takes place between the people of the same nation.
Answer:
Internal trade (Home trade).

Question 2.
Buying goods in larger quantities from producers and selling them in smaller quantities to retailers is called.
Answer:
Wholesale trade.

Question 3.
……… is the last link in the channel of distribution of goods and services.
Answer:
Retailers.

Question 4.
…….. have close contact with consumers.
Answer:
Retailers.

Question 5.
…….. traders do not have a fixed place of business.
Answer:
Itinerant traders.

Question 6.
…….. carry goods on wheeled carts or on bicycles.
Answer:
Hawkers.

Question 7.
……. carry the products on the head or in baskets or shoulder bags.
Answer:
Pedlars.

Question 8.
Identify the following types of retailers and state two features for each type.
(a) Mohan sells fish on his bicycle.
(b) Anand sells toys, plastic, utensils, etc. in front of a shop on Sundays.
(c) Rajan sells old film magazines and other periodicals in pavements near a railway station.
Answer:

1. Hawkers
2. Market traders
3. Street traders

Question 9.
Identify the middleman – Manufacturer ………..?………… Retailer
Answer:
Wholesaler

Question 10.
Name the type of business.
Answer:

Hawkers

Question 11.
Wholesaler acts as a link between the manufacturer and …………….
Answer:
Retailers

Question 12.
Trade between Bangalore and Bombay is an example of …………… trade
(a) foreign trade
(b) home trade
(c) wholesale trade.
Answer:
(b) Home trade.

Question 13.
Identify the types of retailing business.
(a) Stores dealing with a particular line of goods like books, toys, etc.
(b) Stores dealing with a variety of goods of a particular brand.
(c) Stores dealing with a variety of goods of daily use.
(d) Selling goods on the pavement of a city.
(e) Stores selling used books or garments at a cheaper price.
Answer:

1. Single line store
2. Specialty store
3. General store or variety store
4. Itinerant retailing
5. Secondhand goods shop

Question 14.
Name the method of distribution in the following cases:
(a) The manufacturer approaches the customers directly.
(b) The marketing representative calls the customs over the telephone.
(c) Sale of goods and services by using the internet.
(d) Sale of goods through machines without any human intervention.
Answer:

1. Direct marketing
2. Telemarketing
3. Internet Marketing
4. Automatic vending machine

Question 15.
The shops which are owned by the same proprietor and located in different parts of the city or country are known as:
(a) Departmental store
(b) Super bazar
(c) Multiple shops
(d) Mail-order business
Answer:
(c) Multiple shops.

Question 16.
Which of the following is not an advantage of mail-order business?
(a) It required less capital.
(b) There is no risk of bad debts.
(c) It is not suitable for illiterates.
(d) Home delivery of goods is possible.
Answer:
(c)It is not suitable for illiterates.

Question 17.
It is a large scale retail organisation consisting of many departments each dealing in one item. Identify the type of organisation mentioned here.
Answer:
Departmental undertakings.

Question 18.
Find the odd one? Hawkers, cheap tacks, multiple shops, Street Traders.
Answer:
multiple shop.

Question 19.
“Absence of Salesman is one of the most important features of this shop”. Identify the shop and state it features.
Answer:
Supermarket.

Question 20.
“Post office is the channel through which a type of business is conducted”. Identify the business.
Answer:
Mail order business

Question 21.
Multiple shops are also known as ……………
Answer:
Chain stores.

Question 22.
Bata Shoe Company is an example of …………..
Answer:
Chain stores.

Question 23.
Supermarkets are also known as …………
Answer:
Self Service store

Question 24.
Bulky and perishable goods are not suitable for …………..
Answer:
Mail Order business.

Question 25.
Mail-order business is also known as …………….
Answer:
Shopping by post.

Question 26.
VPP means ……………..
Answer:
Value Payable Post.

Question 27.
“This is an agreement between the parent company and owner of an individual business unit”. Identify the category of retailers from the statement.
Answer:
Franchise.

2 Mark Questions and Answers

Question 1.
“Only the retailers know the pulse of the market” Do you agree? Justify your answer.
Answer:
Yes. Retailers have direct contact with consumers. So they can know the tastes and preferences of consumers. So a retailer occupies an important position in the distribution system.

Question 2.
a) Identify the following types of retailers.
b) State two features of such types of retailers.

1. Chandran is a street fruit seller.
2. Samuel sells vegetables in a wheeled cart.
3. Amar sells mangoes on Sundays at a weekly market.
4. Muneer sells goods by frequently changing the shop.

Answer:
a) Street traders
Features of street traders

1. These traders display their articles on busy streets, bus stand, railway stations, etc.
2. They sell low priced articles like pens, books, magazines, handkerchiefs, etc.

b) Hawkers
Features of Hawkers

1. Hawkers are traders who carry their products in wheeled carts or bicycles.
2. They deal with cheap and light articles like vegetables, fruits, toys, sweets, etc.

c) Market traders
Features of Market traders

1. These traders sell their articles on fixed days in different places.
2. They sell all kinds of goods like vegetables, ready-made garments, stationery, etc.

d) Cheap jacks
Features of Cheap jacks

1. They do not stick to a particular place of business.
2. They hire small shops located in residential areas and sell consumer items like fruits, vegetables, etc.

3 Mark Questions and Answers

Question 1.
Classify the following features under two heads departmental stores and multiple shops.
(a) Each shop deals with the same type of goods.
(b) A wide variety of products is available under one roof.
(c) There is uniformity in the shop’s design and layout.
(d) It aims at the elimination of middlemen.
(e) The products are arranged in separate departments.
(f) It deals in one or two lines of products.

4 Mark Questions and Answers

Question 1.
“These traders have no fixed place of business, but deal in articles of small value having high mobility”. Identify the category of traders and explain two types of such traders.
Itinerant traders.
a) Hawkers and Pedlars:
They deal in light and cheap consumer goods of regular use. Hawkers are traders who carry their products in wheeled carts or bicycles. But pedlars carry their products on their back or head or in shoulder bags. They deal in vegetables, fruits, sweets, toys, etc.

b) Market Traders:
These traders sell their articles on fixed days in different places. They sell all kinds of goods like vegetables, ready-made garments, stationery, etc.

Question 2.
“Such traders do not have fixed place of business”. Identify the type of retailers. Also, explain types of such retailers.
Answer:
Itinerant Retailers:
The retailers who do not have a fixed place of business to operate from are called itinerant retailers. They have to move from one place to another along with their goods in search of consumers.

Characteristics of itinerant retailers.

1. They are small traders having limited resources.
2. They generally deal with consumer products of daily use.
3. They emphasize on providing greater customer services.
4. They do not have any fixed place to operate from.

Types of itinerant retailers

1. Peddlers and hawkers:
They can the products on a bicycle, a hand cart, a cycle-rickshaw or on their heads, and move from place to place to sell their products at the doorstep of the customers. They generally deal with non-standardised and low- value products such as toys, vegetables, fruits, etc.

2. Market traders:
They are the small retailer who open their shops at different places and sell the goods on fixed days such as every Saturday or Tuesday. These trader deals in a single line of goods such as toys, ready-made garment crockery, etc.

3. Street traders:
These traders display their articles on busy streets, bus stand, railway stations, etc. They sell low priced articles like pens, books, magazines, handkerchiefs, etc. They do not change their place of business frequently.

4. Cheap jacks:
They are small retailers who have independent shops of a temporary nature in a business locality. They keep on changing their business from one locality to another but not very frequently. They deal with consumer items such as repair of watches, shoes, buckets, etc.

2. Fixed Shop Retailers:
Retailers who maintain permanent establishment to sell their goods are called fixed shop retailers. Following are the main characteristics of fixed shop retailers:

1. They have greater resources and operate on a relatively large scale.
2. They deal in durable as well as non-durable goods.
3. They provide greater services to the customers such as home delivery, repairs, credit facilities, etc.

Types of Fixed Shop Retailers
The fixed-shop retailers can be classified into two. They are:
(a) Small shop-keepers
(b) Large retailers

Question 3.

Answer:
Wholesaler
Functions of wholesalers :
(a) Wholesalers purchase, goods in large quantity from manufactures and sells them to retailers in small quantities.
(b) They store goods in their own warehouses
(c) They provide financial assistance to producers and retailers
(d) They make arrangements for the transportation of goods to the retailer’s shop
(e) They maintain a regular supply of goods. It stabilized the price.
(f) They give valuable information to producers and retailers regarding the product and market.

Question 4.
Explain the role of the Chamber of Commerce and Industry in the promotion of internal trade.
Answer:
Role of Chambers of Commerce and Industry in Promotion of Internal Trade.

Association of business and industrial houses are formed to promote and protect their common interest and goals. They undertake the following functions.

1. The chamber of commerce and Industry help in the inter-state movement of goods through various activities.
2. They ensure that the imposition of octroi and other local taxes do not affect trade adversely.
3. They also undertake marketing of agro products and related issues.
4. They interact with the Government to make laws relating to weights and measures and protection of brands.
5. They discuss with the government to get sound infrastructure so that business activities could be undertaken easily.

6 Mark Questions and Answers

Question 1.
A commerce teacher, while going through the topic, internal trade, cites the example of Bata shoe company, having its headquarters in Bombay has its showrooms at different locations of the city as well as various cities all over India. The products of the company carry the same price in all these showrooms.
b) Explain the features of these types of shops.
Answer:
Chain Stores or Multiple Shops
Multiple shop is a system of branch shops operated under centralised management and dealing in a similar line of goods. Branches are located throughout the nation.

Features of multiple shops

1. It deals in one or two lines of products.
2. All branches are dealing in similar goods
3. It has centralized management and a unified system of control
4. It eliminates middlemen.
5. It works on cash and carry the principle
6. It has centralized buying and decentralized selling.
7. There is uniformity in operation in all branches.
8. It deals with goods of daily use and durables.

Advantages

1. It enjoys economies of bulk purchase because the goods for all branches are purchased by head office.
2. There is no risk of bad debts because all sales are on a cash basis.
3. The advertisements for all branches are done by the head office. So there is an economy in the advertisement.
4. Multiple shops are located in towns and cities. They attract a large number of customers.
5. All branches of multiple shops are uniform in style, design, and display of goods.
6. All the branches sell quality goods at uniform prices. It creates public confidence.
7. The economy in large scale buying, centralized management, etc. reduces the cost of operations.
8. Products having no demand in one branch can be transferred to another branch. It reduces business risk.
9. Multiple shops enjoy the benefits of quick turn over because of countrywide location.

Limitations

1. The multiple shops deal only in a limited range of products. So consumers have very little choice.
2. They will not provide any credit facilities to consumers.
3. There is a lack of personal touch between the company and consumers because branches are managed by salaried managers.
4. The branch manager is only a salaried employee. He has no initiative to increase profits.
5. As these shops deal in a limited line of goods, a fall in demand will affect the business.

Question 2.
Alexander wants to deal with a particular commodity alone. He wants to have branches all over the country. Explain to him the suitable type of selling and also state its merits.
Answer:
Chain Stores or Multiple Shops
Multiple shop is a system of branch shops operated under centralised management and dealing in a similar line of goods. Branches are located throughout the nation.

Features of multiple shops

1. It deals in one or two lines of products.
2. All branches are dealing in similar goods
3. It has centralized management and a unified system of control
4. It eliminates middlemen.
5. It works on cash and carry the principle
6. It has centralized buying and decentralized selling.
7. There is uniformity in operation in all branches.
8. It deals with goods of daily use and durables.

Advantages

1. It enjoys economies of bulk purchase because the goods for all branches are purchased by head office.
2. There is no risk of bad debts because all sales are on a cash basis.
3. The advertisements for all branches are done by the head office. So there is an economy in the advertisement.
4. Multiple shops are located in towns and cities. They attract a large number of customers.
5. All branches of multiple shops are uniform in style, design, and display of goods.
6. All the branches sell quality goods at uniform prices. It creates public confidence.
7. The economy in large scale buying, centralized management, etc. reduces the cost of operations.
8. Products having no demand in one branch can be transferred to another branch. It reduces business risk.
9. Multiple shops enjoy the benefits of quick turn over because of countrywide location.

Limitations

1. The multiple shops deal only in a limited range of products. So consumers have very little choice.
2. They will not provide any credit facilities to consumers.
3. There is a lack of personal touch between the company and consumers because branches are managed by salaried managers.
4. The branch manager is only a salaried employee. He has no initiative to increase profits.
5. As these shops deal in a limited line of goods, a fall in demand will affect the business.

Question 3.
“Post office is the channel through which a type of business is conducted”.
(a) Identify the business. Explain.
(b) State its features, advantages and disadvantages.
Answer:
Mail Order Houses/shopping by Post

Mail-order business is a form of retailing where the business transactions are done through post or mail. Under this system orders for goods, delivery of goods and payment is made through VPP (Value Payable Post). Under this arrangement, the goods are delivered to the customers only on making full payment for the same. There is generally no direct personal contact between the buyers and the sellers in this type of trading.

This type of business is suitable for products that can be:

1. graded and standardised,
2. easily transported at low cost,
3. have ready demand in the market,
4. are available in large quantity throughout the year,
5. involve the least possible competition in the market.
6. can be described through pictures.

Bulky, heavy and perishable products are not suitable for this type of business.

Advantages

1. It needs only limited capital because there is no need for building and other infrastructural facilities.
2. Unnecessary middlemen between the buyers and sellers are eliminated.
3. Since the mail-order houses do not extend credit facilities to the customers, there are no chances of any bad debt.
4. Under this system, goods are delivered at the doorstep of the customers. This results in great convenience to the customers.
5. There is a wider scope for business.
6. It helps to avoid overstocking of goods as goods are collected only when the orders are received.

Disadvantages

1. It has to spend a large amount of advertisement.
2. There is no direct personal contact between the buyer and the seller.
3. The buyer cannot inspect the goods personally before purchasing.
4. They are not suitable for heavy and perishable goods.
5. They do not provide credit facilities to customers.
6. There may be a delay in getting goods.

Question. 4
Distinguish between Wholesalers and Retailers.
Answer:

Types of Retail Trade
Retail trade can be classified into the following two categories on the basis of whether or not they have a fixed place of business.
1. Itinerant Retailers
2.Fixed shop Retailers

Question 5.
Draw a chart showing the types of Retail Trade.
Answer:

8 Mark Questions and Answers

Question 1.
Raja Agencies of Trivandrum buys Honey Biscuits from a company located in Tamil Nadu and supply it to various shops in the district.
(a) You are required to trace out the nature of trade engaged in by the Raja Agencies.
(b) Discuss the various functions performed by them?
Answer:
Wholesale Trade:
Wholesale trade means buying goods in large quantities from the producers and selling them in smaller quantities to the retailers. Wholesalers act as an important link between manufacturers and retailers.

Functions of Wholesaler
1. Buying and assembling:
The wholesalers buy goods from different producers and keep them in a central place.

2. Warehousing:
The goods are to be kept in the I warehouses till they are sold to retailers.

3. Grading and packing:
The goods purchased are sorted out on the basis of quality and size. This is called grading. After grading they are packed in attractive packages.

4. Pricing:
The wholesaler fixes the price of products.

5. Transportation:
The wholesalers move the goods from the production centre to the retail shop.

6. Risk bearing:
They assume the risk like change in demand, spoilage, theft during transportation, etc.

7. Financing:
Wholesalers purchase goods on a cash basis from manufacturers and sell them to the retailers on a credit basis.

8. Market information:
Wholesalers collect various market information for the benefits of manufacturers so that they can change the products accordingly.

Services of Wholesalers to Manufacturers
1. Facilitating large scale production:
As the wholesalers place bulk orders, the producers are able to undertake production on a large scale and take advantage of economies of scale.

2. Risk bearing:
Wholesaler deals in goods in their own name and bears a variety of risks such as the risk of falls in prices, theft, pilferage spoilage, fire, etc.

3. Financial assistance:
Wholesalers provide financial assistance to the manufacturers by making cash payment for the purchased goods.

4. Expert advice:
Wholesaler provides various useful information regarding customer preference, market conditions, etc to the manufacturer.

5. Help in marketing function:
As the wholesalers place bulk orders, it relieves the producer from many marketing activities and he can concentrate on production.

6. Storage facilities:
Wholesalers hold the goods in their own warehouses. It reduces the burden of storage of goods by the manufacturers.

7. Facilitate production continuity:
The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced.

Services of Wholesalers to Retailers
1. Availability of goods:
The wholesalers make the products of various manufacturers readily available to the retailers.

2. Marketing support:
They undertake advertisements and other sales promotional activities to induce customers to purchase the goods.

3. Grant of credit:
The wholesalers generally provide credit facilities to the retailers.

4. Specialised knowledge:
Wholesalers know the pulse of the market. They inform the retailers about the new products, their uses, quality, prices, etc.

5. Risk sharing:
Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, reduction in prices, etc.

Question 2.
Explain the functions of Retailers.
Answer:
Retail Trade
Buying goods in large quantities from the wholesalers and selling them in small quantities to the ultimate consumers is known as retail trade. Retailers serve as an important link between the producers and consumers in the distribution of products and services.

Functions of Retailers

1. A retailer collects different varieties of goods. So he can satisfy different types of customers.
2. A retailer provides market information to wholesalers and manufacturers.
3. A retailer is in close contact with consumers. So he can persuade the consumers to buy the product.
4. Retailers locate their business in residential areas. It helps the consumers to purchase the product easily.
5. The retailers provide credit facilities to the consumers.
6. Retailers provide after-sales services to attract consumers.

Services of Retailers to Manufacturers and Wholesalers

1. Retailers help manufacturers & wholesalers in the distribution of their goods & services to the ultimate consumers.
2. Retailers undertake personal selling efforts and thus, help manufacturers and wholesalers to increase the sale of the products.
3. Retailers help manufacturers and wholesalers to operate production on a large scale by undertaking the distribution of goods.
4. As retailers are in constant touch with customers, they can provide various market information such as the tastes, preferences, and attitudes, etc. of consumers to the producers.
5. Retailers participate in various sales promotional activities conducted by producers and wholesalers.

Services Retailers to Consumers

1. Retailers provide goods to consumers according to their requirements.
2. Retailers keep large varieties of products of different manufacturers. It enables customers to select goods according to their choice.
3. Retailers provide important information about the new products to the consumers.
4. Retailers also provide after-sales services in the form of home delivery etc. to the customers.
5. Retailers often supply goods on credit to the customers.
6. Retailers keep ready stock of the products needed by the consumers.

Question 3.
Explain the services rendered by retailers to consumers.
Answer:
Retail Trade
Buying goods in large quantities from the wholesalers and selling them in small quantities to the ultimate consumers is known as retail trade. Retailers serve as an important link between the producers and consumers in the distribution of products and services.

Functions of Retailers

1. A retailer collects different varieties of goods. So he can satisfy different types of customers.
2. A retailer provides market information to wholesalers and manufacturers.
3. A retailer is in close contact with consumers. So he can persuade the consumers to buy the product.
4. Retailers locate their business in residential areas. It helps the consumers to purchase the product easily.
5. The retailers provide credit facilities to the consumers.
6. Retailers provide after-sales services to attract consumers.

Services of Retailers to Manufacturers and Wholesalers

1. Retailers help manufacturers & wholesalers in the distribution of their goods & services to the ultimate consumers.
2. Retailers undertake personal selling efforts and thus, help manufacturers and wholesalers to increase the sale of the products.
3. Retailers help manufacturers and wholesalers to operate production on a large scale by undertaking the distribution of goods.
4. As retailers are in constant touch with customers, they can provide various market information such as the tastes, preferences, and attitudes, etc. of consumers to the producers.
5. Retailers participate in various sales promotional activities conducted by producers and wholesalers.

Services Retailers to Consumers

1. Retailers provide goods to consumers according to their requirements.
2. Retailers keep large varieties of products of different manufacturers. It enables customers to select goods according to their choice.
3. Retailers provide important information about the new products to the consumers.
4. Retailers also provide after-sales services in the form of home delivery etc. to the customers.
5. Retailers often supply goods on credit to the customers.
6. Retailers keep ready stock of the products needed by the consumers.

Question 4.
Explain the features, advantages, and disadvantages of departmental stores.
Answer:
Departmental stores:
A departmental store is a large scale retail shop selling a wide variety of goods in different departments under one and management. Each department deals in a separate line of goods like stationery, books, furniture, clothing, etc. Consumers can purchase all goods from the departmental store.

Features of a departmental store

1. It is a large scale retail organization.
2. A number of retail shops in the same building.
3. It offers a wide variety of products under one roof.
4. It is located at central places of the city
5. The products are arranged in separate departments
6. Sales, control, and management are centralized
7. It offers various services and facilities like free home delivery etc.

Advantages
1. Central locations:
As these stores are usually located in central places they attract a large number of customers.

2. Convenience in buying:
By offering a large variety of goods under one roof, the departmental stores provide great convenience to customers in buying almost all goods of their requirements in one place.

3. Attractive services:
A departmental store aims at providing maximum services to the customers.

4. Economy of large-scale operations:
As these stores are organised in a very large-scale, the benefits of large-scale operations are available to them.

5. Mutual advertisement:
All the departments are under one roof, so there is an economy in advertising.

6. Risk distribution:
If there is a loss in one department, it may be compensated for the profit of other departments.

7. Increased sales:
Central location, mutual advertisement, etc. will help a departmental store to increase its sales.

Limitations
1. Lack of personal attention:
Because of the large- scale operations, it is very difficult to provide adequate personal attention to the customers in these stores.

2. Inconvenient location:
As a departmental store is generally situated at a central location, it is not convenient for the consumers who reside away from town.

3. High price:
A departmental store charges a high price for the products because of high operating costs.

4. High operating cost:
As these stores give more emphasis on providing services, their operating costs tend to be high.

5. High advertisement cost:
The success and prosperity of a departmental store depends on advertisement. Therefore, it should spend a large amount on the advertisement.

6. Lack of effective control:
Departmental store works through a large number of departments. It creates so many problems.

7. High risk:
A departmental store keeps a large stock of goods. So changes in fashion, taste, price, etc will affect the profitability of the business.

Question 5.
Explain the features, advantages, and disadvantages of Consumers Co-operative store.
Answer:
Consumer Cooperative Store:
It is a retail store formed by the consumers on the basis of principles of co-operation. These stores are owned and managed by consumers. They deal all types of consumer goods.

Features of Consumers Co-operative

1. It is a voluntary association of consumers.
2. The liability of members is limited.
3. Consumers can purchase quality goods at the lowest cost from these stores.
4. Democratic control is exercised.
5. It eliminates middlemen.

Advantages

1. Consumers can purchase quality goods at the lowest cost from consumers’ co-operative store.
2. There are no bad debts as goods are sold on a cash basis.
3. Economies of large scale purchasing can be enjoyed.
4. Less advertisement expenses are required.
5. It restricts the monopoly and wasteful competition.

Disadvantages

1. A consumer co-operative store can collect low capital. So they cannot start a business on a large scale.
2. The management of a consumer co-operative store is inefficient.
3. It lacks proper warehousing facilities.
4. It will not attract consumers because of no credit facilities.

Question 6.
“Absence of salesman is one of the most important features of this shop”.
a) Identify the shop. Explain
b) State its features, advantages, and disadvantages.
Answer:
Super Markets / Super Bazaar:
Supermarket is a large scale retail organisation selling a wide variety of consumer goods. The important feature of the supermarket is the absence of a salesman to help consumers in selecting goods. Hence the supermarket is also called ‘ Self Service Store’.

Features of Super Market

1. They are located in the center of the town.
2. They sell goods on a cash basis only.
3. They deal with a wide variety of goods.
4. There is no salesman to help consumers.

Advantages

1. Consumers can purchase everything from supermarket
2. There is no bad debt as sales are on a cash basis only.
3. They are located in the centre of the town.
4. It attracts a large number of consumers.
5. Consumers can select goods according to their tastes and preferences.
6. A variety of goods is available in a supermarket.

Disadvantages

1. Large premises at a central location are not available easily.
2. It lacks personal advice of salesman
3. They do not provide credit facilities to customers.
4. The employees in a supermarket do not take initiative to increase sales.
5. It requires a huge capital investment.
6. It is not suitable for products which require personal selling.
7. There is no personal contact with consumers.

You can Download Forms of Business Organisation Questions and Answers, Notes, Plus One Business Studies Chapter Wise Questions and Answers Kerala Chapter 2 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Chapter Wise Questions and Answers Chapter 2 Forms of Business Organisation

1 Mark Questions and Answers

Question 1.
The structure in which there is a separation of ownership and management is called
(a) Sole proprietorship
(b) Partnership
(c) Company
(d) All business
Answer:
(c) Company

Question 2.
Write the name of the form of business organisation found only in India.
Answer:
Hindu Undivided Family

Question 3.
Name the type of Co. which must have a minimum paid-up capital of 5 lacs.
Answer:
Public Company

Question 4.
…… is the oldest and popular form of business organisation.
Answer:
Sole proprietorship

Question 5.
Profits do not have to be shared. This statement refers to ………
(a) Partnership
(b) Joint Hindu family business
(c) Sole proprietorship
(d) Company
Answer:
(c) Sole proprietorship

Question 6.
Quick decision, prompt action and business secrecy are the major features of this form of business. Name it.
Answer:
Sole proprietorship.

Question 7.
Mrs.Anupama is running a bookstall in the high school junction. She is the owner, manager and labourer of her business. She gives personal attention to each and every customer and attracts more customers and earns high profits. Identify the form of organization owned and operated by Mrs Anupama
Answer:
Sole proprietorship

Question 8.
The liability of a sole trader is ………
Answer:
Unlimited.

Question 9.
The maximum number of partners allowed in the banking business is:
(a) Twenty
(b) Ten
(c) No limit
(d) Two
Answer:
(b) Ten

Question 10.
The minimum number of partners required to form a partnership business is
(a) Twenty
(b) Ten
(c) No limit
(d) Two
Answer:
(d) Two

Question 11.
A partner whose association with the firm is unknown to the general public is called
(a) Active partner
(b) Sleeping partner
(c) Nominal partner
(d) Secret partner
Answer:
(d) Secret partner

Question 12.
Mr Isaac contributes capital to partnership business, but not takes part in business, what kind of partner he is?
Answer:
Sleeping partner

Question 13.
Identify the type of partners in the following situation:

1.  The liability of Sridhar, a 25 years old partner is limited to the extent of his capital contribution.
2. Madan has neither contributed any capital nor shares the profits of the firm though he is treated as a partner.
3. Sunita has been admitted to the benefits of the firm at the age of 15.
4. Sudhir had contributed to capital and shares the profit and loss of the firm. But he does not take part in the day-to-day activities.
5.  A firm declares that Sachin is a partner of their firm. Knowing the declaration Sachin did not disclaim it.

Answer:

1. Limited partner
2. Nominal Partner
3.  Minor partner
4. Sleeping Partner/dormant partner
5. Partner by holding out.

Question 14.
M, N and P are the partnership firm. In this firm ‘P’ contributes capital and take active part in business, while ‘R’ lends only his name and reputation. What type of partners are they?
Answer:
‘P’ is an active partner, ‘R’ is a nominal partner

Question 15.
Name the partner who shares the profits of the business without being liable for the losses.
Answer:
Partner in profit only

Question 16.
The maximum number of partners in a partnership firm except banking business is ……..
Answer:
20

Question 17.
The liability of partners in a partnership business is ………
Answer:
Unlimited

Question 18.
The written agreement of partnership is called ………..
Answer:
Partnership Deed

Question 19.
Partnership formed for the accomplishment of a particular project or for a specified time period is called ………
Answer:
Particular partnership.

Question 20.
Registration of a partnership is ………
Answer:
Optional

Question 21.
The Head of the joint Hindu family business is called
(a) Proprietor
(b) Director
(c) Karta
(d) Manager
Answer:
(c) Karta

Question 22.
The Karta in Joint Hindu family business has
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability
Answer:
(b) Unlimited liability

Question 23.
It is not formed by an agreement or by a contract. But it comes into existence by the operation of Hindu law. Name the type of business organisation.
Answer:
Hindu Undivided Family (HUF)

Question 24.
The members of a Joint Hindu Family business is known as …….
Answer:
Co-parceners.

Question 25.
The liability of all members in H.U.F is ……..
Answer:
Limited

Question 26.
In a Co-operative society, the principle followed is
(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes
Answer:
(b) One man one vote

Question 27.
The main aim of this organization is self-help through mutual help. Identify the type of organizations.
Answer:
Co-operative Society

Question 28.
“Each for All and All for Each” is a basic motto of a form of business organization. Identify the organization.
Answer:
Co-operative society

Question 29.
Voting right in a cooperative society is based on the principle of …………
Answer:
One man one vote

Question 30.
The minimum number of persons to form a co-operative society is ……..
Answer:
10

Question 31.
The membership of a co-operative society is ……….
Answer:
Voluntary.

Question 32.
Registration of a Co-operative society is …….
Answer:
Compulsory

Question 33.
The liability of the members of a cooperative society is ………
Answer:
Limited

Question 34.
The capital of a company is divided into a number of parts each one of which is called …………
(a) Dividend
(b) Profit
(c) Interest
(d) Share
Answer:
(d) Share

Question 35.
Name the following in reference to a joint-stock company

1. The smallest unit into which the capital of the company is divided.
2. The Act that governs the joint-stock companies in India.
3. The sum total of the money contributed by the members of a joint-stock company.
4. The official signature of a joint-stock company.
5. The elected representatives of the members who manage the day to day affairs of the joint-stock company.

Answer:

1. Share
2. Companies Act 1956
3. Share capital
4. Common seal
5. Directors

2 Mark Questions and Answers

Question 1.
Compare the status of a minor in a Joint Hindu Family Business with that in a partnership.
Answer:
The basis of membership in the HUF business is birth in the family. Hence, minors can also be members of the business. His liability is limited. In a partnership firm, a minor can be admitted to the benefits of a partnership firm with the mutual consent of all other partners. In such cases, his liability will be limited to the extent of the capital contributed by him.

Question 2.
Sunny Joseph wants to start a private business. Tell him the different forms in which a private business can be organized.
Answer:
There are five forms of business enterprises in the private sector.They are:

1. Sole proprietorship
2. Joint Hindu Family Business
3. Partnership
4. Joint Stock Company
5. Co-operative Society

Question 3.
Name the form of business organisation where membership is acquired by birth. Explain any two features of such an organisation.
Answer:

1. Joint Hindu Family Business
2. Joint Hindu Family Business (HUF)

It refers to a form of organisation were in the business is owned and carried on by the members of a joint Hindu family. It is also known as Hindu Undivided Family Business (H.U.F). It is governed by the Hindu Succession Act, 1956. It is found only in India. The business is controlled by the head of the family who is the eldest member and is called Karta. All members have equal ownership right over the property of an ancestor and they are known as co-parceners.

Features

1. Formation:
For a Joint Hindu family business, there should be at least two members in the family and some ancestral property to be inherited by them.

2. Membership:
Membership by virtue of birth in the family.

3. Liability:
The Karta has unlimited liability. Every other coparcener has a limited liability up to his share in the HUF property.

4. Control:
The control of the family business lies with the Karta. He takes all the decisions and is authorised to manage the business.

5. Continuity:
The business is not affected by the death of the Karta as in such cases the next senior male member becomes the Karta.

6. Minor Members:
The basis of membership in the business is birth in the family. Hence, minors can also be members of the business.

Merits

1. Effective control:
The Karta has absolute decision making power. This avoids conflicts among members.

2. Continuity of business:
The death of the Karta will not affect the business as the next eldest member will then take up the position.

3. Limited liability of members:
The liability of all the co-parceners except the Karta is limited to their share in the business.

4. Increased loyalty:
Members are likely to work with dedication, loyalty and care because the work involves the family name.

Limitation

1. Limited capital:
The capital of HUF is limited since the ancestral property only can be used for the business. This reduces the scope for business growth.

2. Unlimited liability:
The liability of Karta is unlimited. His personal property can be used to repay business debts.

3. Dominance of Karta:
There is a possibility of differences of opinion among the members of the Joint Family. It may affect the stability of the business.

4. Limited managerial skills:
The Karta may not be an expert in all areas of management. It may affect the profitability of the business.

Question 4.
What is a Private Company?
Answer:
Private Company:-
A private company means a company which:

1. restricts the right of members to transfer its shares
2. has a minimum of 2 and a maximum of 50 members
3. does not invite public to subscribe to its share capital
4. must have a minimum paid-up capital of Rs.1 lakh It is necessary for a private company to use the word private limited after its name.

Question 5.
What is Public Company?
Answer:
Public Company
A public company means a company which is not a private company. As per the Indian Companies Act, a public company is one which:

1. has a minimum paid-up capital of Rs. 5 lakhs
2. has a minimum of 7 members and no limit on maximum members
3. can transfer its shares
4. can invite the public to subscribe to its shares. A private company which is a subsidiary of a public company is also treated as a public company. A public company must use the word limited after its name.

3 Mark Questions and Answers

Question 1.
Tristar Traders’ is a real estate partnership firm having partners viz. Haridas, Balakrishnan and Venny. They are equal partners. Due to ill health, Mr.Balakrishnan wants to retire from the business and he asks other partners to admit his 17-year-old son Mr.Renjith into partnership. Mr.Haridas and Mr.Venny agree to admit Mr.Renjith into the partnership.

1. Is it possible to admit Mr.Renjith into the partnership? Substantiate.
2. What type of partner is Renjith?

Answer:

1. Yes. It is possible to admit Renjith into partnership with the consent of all other partners.
2. Minor partner.

Question 2.
Explain the status of a minor in a partnership firm.
Answer:
A minor can be admitted to the benefits of a partnership firm with the mutual consent of all. other partners. In such cases, his liability will be limited to the extent of the capital contributed by him in the firm. He will not be eligible to take an active part in the management of the firm. A minor can share only the profits. He can inspect the accounts of the firm.

Question 3.
Mr. Unnikrishnan, a senior member, who looks after the family business, convened a meeting of the family members. He told that the firm is unable to pay its debts. So the personal property of all members must be made available for repaying the debts. All the members disagreed with the suggestion. As a commerce student what will be your opinion?
Answer:
The HUF business is governed by the law of succession. Here Mr. Unnikrishnan, a senior male member of the family runs the business. He is called Karta. The liability of the Karta is unlimited. But the liability of all other co-partners is limited. Only the personal property of the Karta can be used for the payment of business debts.

Question 4.
Distinguish between Private limited company and Public limited company.
Answer:
Difference between a public company and private company

4 Mark Questions and Answers

Question 1.
Mr.Jayan, still an unemployed youth, after two years of his post-graduation, decided to start a restaurant. In order to meet the capital requirements, he seeks his father’s help. His father agreed to give sufficient capital but asks him what prompted him to start this sort of a business. Jayan explains the essential factors he has considered for starting the restaurant.

1. Identify the business.
2. Explain the merits of the proposed business.

Answer:

1. Sole Proprietorship
2. Advantages of Sole Proprietorship

Sole proprietorship:
Sole proprietorship refers to a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. It is the most common form of business organization.

Features

1. The sole trader is the single owner and manager of the business.
2. The formation of a sole proprietorship is very easy. There are no legal formalities to form and close a sole proprietorship.
3. The liability of a sole trader is unlimited, i.e. in case of loss, his personal properties can be used to pay the business liabilities.
4. The entire profit of the sole trading business goes to the sole proprietor. If there is any loss it is also to be borne by the sole proprietor alone.
5. The sole trader has full control over the affairs of the business. So he can take quick decisions.
6. A sole trading concern has no legal existence separate from its owner.
7. The death, insolvency etc. of a sole trader causes discontinuity of business.

Merits
1. Easy formation:-
The formation of a sole proprietorship is very easy. There are no legal formalities to form and close a sole proprietorship.

2. Quick Decision:
The sole trader has full control over the affairs of the business. So he can take quick decisions and prompt actions in all business matters.

3. Motivation:
The entire profit of the sole trading business goes to the sole proprietor. It motivates him to work hard.

4. Secrecy:
A sole trader can keep all the information related to business operations and he is not bound to publish the firm’s accounts.

5. Close Personal Relation :
The sole proprietor can maintain good personal contact with the customers and employees and thus, business runs smoothly.

Limitations
1. Limited capital:
A sole trader can start business only on a small scale because of limited capital.

2. Lack of Continuity:
Death, insolvency or illness of a proprietor affects the business and can lead to its closure.

3. Limited managerial ability:
A sole proprietor may not be an expert in every aspect of management.

4. Unlimited liability:
The liability of a sole trader is unlimited, i.e. in case of loss, his personal properties can be used to pay off the business liabilities.

5. Suitability:
Sole proprietorship is suitable in the following cases.

• Where the market is limited, localized and customers demand personalized services. Eg. tailoring, beauty parlour etc.
• Where goods are unstandardised like artistic jewellery.
• Where lower capital, limited risk & limited managerial skills are required as in case of retail store.

Question 2.
I am on the look for a few persons who are ready to invest both their skills and money because I believe collective efforts are more fruitful and least bothered about the extent of liability.

(a) What type of business organization is suitable for me?

(b) Explain the procedure in the formation of this business.

Answer:

(a) Partnership

(b) Registration of partnership

According to Indian Partnership Act 1932, registration of a partnership is not compulsory, it is optional. However, they can register with the Registrar of firms of the state in which the firm is situated.

Procedure for Registration:
1. Submission of application in the prescribed form to the Registrar of firms. The application should contain the following particulars:

• Name of the firm
• Location of the firm
• Names of other places where the firm carries on business
• The date when each partner joined the firm
• Names and addresses of the partners
• Duration of partnership.

This application should be signed by all the partners.
2. Deposit of required fees with the Registrar of Firms.

3. The Registrar after approval will make an entry in the register of firms and will subsequently issue a certificate of registration.

The consequences of non-registration of a firm are as follows : –

1. A partner of an unregistered firm cannot file suit against the firm or other partner.
2. The firm cannot file a suit against the third party.
3. The firm cannot file a case against its partner.

Question 3.
Certain companies cannot issue an invitation to the public to subscribe to its shares. The maximum shareholders of the company is limited to 50. The transfer of shares of the company is restricted.

(a) Identify the type of company.

(b) Explain the privileges enjoyed by these types of companies.

Answer:
(a) Private Company

(b) Privileges of a private company

1. A private company can be formed by only two members.
2. There is no need to issue a prospectus
3. Allotment of shares can be done without receiving the minimum subscription.
4. A private company can start business as soon . as it receives the certificate of incorporation.
5. A private company needs to have only two directors.
6. A private company is not required to keep an index of members.
7. There is no restriction on the amount of loans to directors in a private company.

5 Mark Questions and Answers

Question 1.
Arun, Nisha and Lekshmi, entered into an agreement for starting a supermarket – ‘Mythri’. The other terms and conditions of the business were. mentioned in their deed. While having an official meeting of the partners, Nisha and Lekshmi suggested that the firm should be registered. But Arun contented that, it is not essential to register Mythri. The other two partners disagreed with Arun and maintained that it is essential because they don’t want to bear the consequences. As an expert in this topic,
(a) Whom do you favour? Specify your reasons in support of your judgement.

(b) In your opinion, is there any consequences, if Mythri is not registered. Explain.

Answer:
a) Arun. It is not compulsory to register a partnership firm,

(b) Registration of partnership
According to Indian Partnership Act 1932, registration of a partnership is not compulsory, it is optional. However, they can register with the Registrar of firms of the state in which the firm is situated.

Procedure for Registration:

1. Submission of application in the prescribed form to the Registrar of firms. The application should contain the following particulars:

• Name of the firm
• Location of the firm
• Names of other places where the firm carries on business
• The date when each partner joined the firm
• Names and addresses of the partners
• Duration of partnership.

This application should be signed by all the partners.
2. Deposit of required fees with the Registrar of Firms.

3. The Registrar after approval will make an entry in the register of firms and will subsequently issue a certificate of registration.

The consequences of non-registration of a firm are as follows : –

1. A partner of an unregistered firm cannot file suit against the firm or other partner.
2. The firm cannot file a suit against the third party.
3. The firm cannot file a case against its partner.

Question 2.
Name the following in reference to a joint-stock company.

1. The smallest unit into which the capital of the company is divided.
2. The Act that governs the joint-stock companies in India.
3. The sum total of the money contributed by the members of a joint-stock company.
4. The official signature of a joint-stock company.
5. The elected representatives of the members who manage the day to day affairs of the joint-stock company.

Answer:

1. Share
2. Companies Act 1956
3. Share capital
4. Common seal
5. Directors

6 Mark Questions and Answers

Question 1.
Distinguish between Joint Stock Company and Partnership.
Answer:

Partnership Firm Joint Stock Company
1. Formed by an agreement Formed by registration
2. Governed by Partnership Act 1932 Governed by the Companies Act 1956
3. Registration is optional Registration is compulsory
4. It has no separate legal existence It has separate legal existence
5. It does not possess continuous existence It has perpetual existence
6. Minimum number of persons required is two Minimum number of persons required is seven (2 in Private company)
7. The liability of partners is unlimited The liability of shareholders is limited
8. All partners can take part in the management All shareholders cannot take part in the management

Question 2.
Discuss the factors that determine the choice of form of organisation.
Answer:
Choice of business organisation
The important factors determining the choice of organization are:-

1. Cost and Ease of formation:-
From the point of view of cost, sole proprietorship is the preferred form as it involves least expenditure and the legal requirements are minimum. Company form of organisation is more complex and involves greater costs.

2. Liability:-
In case of sole proprietorship and partnership firms, the liability of the owners/ partners is unlimited. In cooperative societies and companies, the liability is limited. Hence, from the point of view of investors, the company form of organisation is more suitable as the risk involved is limited.

3. Continuity:
The continuity of sole proprietorship and partnership firms is affected by death, insolvency or insanity of the owners. However, such factors do not affect the continuity of cooperative societies and companies. In case the business needs a permanent structure, company form is more suitable.

4. Management ability:
If the organisation’s operations are complex in nature and require professionalized management, company form of organisation is a better alternative.

5. Capital:
If the scale of operations is large, company form may be suitable whereas for medium and small-sized business one can opt for partnership or sole proprietorship.

6. Degree of control:
If direct control over business and decision making power is required, proprietorship may be preferred. But if the owners do not mind sharing control and decision making, partnership or company form of organisation can be adopted.

7. Nature of business:
If direct personal contact is needed with the customers, Sole proprietorship may be more suitable. Otherwise, the company form of organisation may be adopted.

8 Mark Questions and Answers

Question 1.
Prepare a seminar report on the merits of the Joint Stock Company form of business.
Answer:
Joint Stock company
A company may be defined as a voluntary association of persons having a separate legal entity, with perpetual succession and a common seal. It is an artificial person created by law. The companies in India are governed by the Indian. Companies Act, 1956.

The capital of the company is divided into smaller parts called ‘shares’ which can be transferred freely, (except in a private company). The shareholders are the owners of the company. The company is managed by Board of Directors, elected by shareholders.

Features
1. Incorporated association:
A company is an incorporated association, i.e. Registration of a company is compulsory under the Indian Companies Act, 1956.

2. Separate legal entity:-
A company is an artificial person created by law. Company has a separate legal entity apart from its members. It can enter into contracts, own property, sue and be sued, borrow and lend money etc.

3. Formation:-
The formation of a company is a time consuming, expensive and complicated process.

4. Perpetual succession:-
A company has a continuous existence. Its existence not affected by death, insolvency or insanity of shareholders. Members may come and go, but the company continues to exist.

5. Control:-
The management and control of the affairs of the company is in the hands of Board of directors who are elected the representatives of the shareholders.

6. Liability:-
The liability of the shareholders is limited to the extent of the face value of shares held by them.

7. Common seal:
The Company being an artificial person acts through its Board of Directors. All documents issued by the company must be authenticated by the company seal.

8. Transferability of shares:-
Shares of a joint-stock company are freely transferable except in case of a private company.

Merits

1. Limited liability:- The liability of the shareholders is limited to the extent of the face value of shares held by them. This reduces the degree of risk borne by an investor.
2. Transferability of shares:- Shares of a public company are freely transferable. It provides liquidity to the investor.z
3. Perpetual existence:- A company has a continuous existence. Its existence not affected by death, insolvency or insanity of shareholders.
4. Scope for expansion:- A company has large financial resources. So it can start business on a large scale.
5. Professional management: A company can afford to pay higher salaries to specialists and professionals. This leads to greater efficiency in the company’s operations.
6. Public confidence:- A company must publish its audited annual accounts. So it enjoys public confidence.

Limitations

1. Difficulty information:-
The formation of a company is very difficult. It requires greater time, effort and extensive knowledge of legal requirements.

2. Lack of secrecy:-
It is very difficult to maintain secrecy in case of a public company, a  company is required to publish its annual accounts and reports.

3. Impersonal work:-
It is difficult for the owners and top management to maintain personal contact with the employees, customers and creditors.

4. Numerous regulations:-
The functioning of a company is subject to many legal provisions and compulsions. This reduces the freedom of operations of a company.

5 Delay in decision making:-
A company takes important decisions by holding company meetings. It requires a lot of time.

6. Oligarchic management:-
Theoretically a company is democratically managed but actually it is managed by few people, i.e board of directors. The Board of Directors enjoy considerable freedom in exercising their power which they sometimes ignore the interest of the shareholders.

7. Conflict in interests:-
There may be a conflict of interest amongst various stakeholders of a company. It affects the smooth functioning of the company.

8. Lack of motivation:-
The company is managed by a board of directors. They have little interest to protect the interest of the company.

Types of Companies
A company can be either a private or a public company.

Question 2.
Mrs.Sheela is running a Ladies Beauty Parlour in Calicut City. She is the owner, manager and labourer of her business.
a) What form of organisation Mrs.Sheela owns.

b) State its merits and demerits.
Answer:
a) Sole Proprietorship

(b) Sole proprietorship:
Sole proprietorship refers to a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. It is the most common form of business organization.

Features

1. The sole trader is the single owner and manager of the business.
2. The formation of a sole proprietorship is very easy. There are no legal formalities to form and close a sole proprietorship.
3. The liability of a sole trader is unlimited, i.e. in case of loss, his personal properties can be used to pay the business liabilities.
4. The entire profit of the sole trading business goes to the sole proprietor. If there is any loss it is also to be borne by the sole proprietor alone.
5. The sole trader has full control over the affairs of the business. So he can take quick decisions.
6. A sole trading concern has no legal existence separate from its owner.
7. The death, insolvency etc. of a sole trader causes discontinuity of business.

Merits

1. Easy formation:-
The formation of a sole proprietorship is very easy. There are no legal formalities to form and close a sole proprietorship.

2. Quick Decision:
The sole trader has full control over the affairs of the business. So he can take quick decisions and prompt actions in all business matters.

3. Motivation:
The entire profit of the sole trading business goes to the sole proprietor. It motivates him to work hard.

4. Secrecy:
A sole trader can keep all the information related to business operations and he is not bound to publish the firm’s accounts.

5. Close Personal Relation :
The sole proprietor can maintain good personal contact with the customers and employees and thus, business runs smoothly.

Limitations
1. Limited capital:
A sole trader can start business only on a small scale because of limited capital.

2. Lack of Continuity:
Death, insolvency or illness of a proprietor affects the business and can lead to its closure.

3. Limited managerial ability:
A sole proprietor may not be an expert in every aspect of management.

4. Unlimited liability:
The liability of a sole trader is unlimited, i.e. in case of loss, his personal properties can be used to pay off the business liabilities.

5. Suitability:
Sole proprietorship is suitable in the following cases.

• Where the market is limited, localized and customers demand personalized services. Eg. tailoring, beauty parlour etc.
• Where goods are unstandardised like artistic jewellery.
• Where lower capital, limited risk & limited managerial skills are required as in case of retail store.

Question 3.
Mr.Firoz, a graduate wants to start a business but on certain conditions –

1. He does not want to go through a lot of legal formalities.
2. He does not care to have unlimited liability.
3. He does not bother admitting partners in his business.

• Considering these factors, suggest a form of business suitable to Mr.Firoz.
• Explain its merits and demerits.

Answer:

1. Partnership
2. Partnership
   The Indian Partnership Act, 1932 defines partnership as “the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.”

Features
1. Formation:-
For the formation of a partnership, agreement between partners is essential.

2. Liability:-
The partners of a firm have unlimited liability. The partners are jointly and individually liable for the payment of debts.

3. Risk bearing:
The profit or loss shall be shared among the partners equally or in agreed ratio.

4. Decision making and control:-
The activities of a partnership firm are managed through the joint efforts of all the partners.

5. Lack of Continuity:-
The retirement, death, insolvency, insanity etc of any partner brings the firm to an end.

6. Membership:-
There must be at least two persons to form a partnership. The maximum number of persons is ten in the banking business and twenty in non-banking business.

7. Mutual agency:-
In partnership, every partner is both an agent and a principal.

Merits of Partnership

1. Easy formation and closure:-
A partnership firm can be formed and closed easily without any legal formalities.

2. Balanced decision making:-
In partnership, decisions are taken by all partners. So they can take better decisions regarding their business.

3. Division of labour:-
Division of labour is possible in partnership firm. Duties can be assigned to different partners according to their ability.

4. Large funds:-
In a partnership, the capital is contributed by a number of partners. So they can start business on a large scale.

5. Sharing of risk:-
The risks involved in running a partnership firm are shared by all the partners. This reduces the anxiety, burden and stress on individual partners.

6. Secrecy:-
A partnership firm is not legally required to publish its accounts and submit its reports. Hence it can maintain confidentiality of information relating to its operations.

Limitations of Partnership

1. Unlimited liability:-
The partners of a firm have unlimited liability. The partners are jointly and individually liable for the payment of debts.

2. Limited resources:-
There is a restriction on the number of partners. Hence capital contributed by them is also limited.

3. Possibility of conflicts:-
Lack of mutual understanding and co-operation among partners may affect the smooth working of the partnership business.

4. Lack of continuity:-
The retirement, death, insolvency, insanity etc of any partner brings the firm to an end.

5. Lack of public confidence:-
A partnership firm is not legally required to publish its financial reports. As a result, the confidence of the public in partnership firms is generally low.

Question 4.
“A Company is an artificial person created by law”. Based on the above statement, explain the features of a Joint Stock Company.
Answer:
Joint Stock company
A company may be defined as a voluntary association of persons having a separate legal entity, with perpetual succession and a common seal. It is an artificial person created by law. The companies in India are governed by the Indian. Companies Act, 1956.

The capital of the company is divided into smaller parts called ‘shares’ which can be transferred freely, (except in a private company). The shareholders are the owners of the company. The company is managed by Board of Directors, elected by shareholders.

Features
1. Incorporated association:
A company is an incorporated association, i.e. Registration of a company is compulsory under the Indian Companies Act, 1956.

2. Separate legal entity:-
A company is an artificial person created by law. Company has a separate legal entity apart from its members. It can enter into contracts, own property, sue and be sued, borrow and lend money etc.

3. Formation:-
The formation of a company is a time consuming, expensive and complicated process.

4. Perpetual succession:-
A company has a continuous existence. Its existence not affected by death, insolvency or insanity of shareholders. Members may come and go, but the company continues to exist.

5. Control:-
The management and control of the affairs of the company is in the hands of Board of directors who are elected the representatives of the shareholders.

6. Liability:-
The liability of the shareholders is limited to the extent of the face value of shares held by them.

7. Common seal:
The Company being an artificial person acts through its Board of Directors. All documents issued by the company must be authenticated by the company seal.

8. Transferability of shares:-
Shares of a joint-stock company are freely transferable except in case of a private company.

Merits

1. Limited liability:-
The liability of the shareholders is limited to the extent of the face value of shares held by them. This reduces the degree of risk borne by an investor.

2. Transferability of shares:-
Shares of a public company are freely transferable. It provides liquidity to the investor.

3. Perpetual existence:-
A company has a continuous existence. Its existence not affected by death, insolvency or insanity of shareholders.

4. Scope for expansion:-
A company has large financial resources. So it can start business on a large scale.

5. Professional management:
A company can afford to pay higher salaries to specialists and professionals. This leads to greater efficiency in the company’s operations.

6. Public confidence:-
A company must publish its audited annual accounts. So it enjoys public confidence.

Limitations

1. Difficulty information:-
The formation of a company is very difficult. It requires greater time, effort and extensive knowledge of legal requirements.

2. Lack of secrecy:-
It is very difficult to maintain secrecy in case of public company, as a company is required to publish its annual accounts and reports.

3. Impersonal work:-
It is difficult for the owners and top management to maintain personal contact with the employees, customers and creditors.

4. Numerous regulations:-
The functioning of a company is subject to many legal provisions and compulsions. This reduces the freedom of operations of a company.

5 Delay in decision making:-
A company takes important decisions by holding company meetings. It requires a lot of time.

6. Oligarchic management:-
Theoretically a company is democratically managed but actually it is managed by few people, i.e board of directors. The Board of Directors enjoy considerable freedom in exercising their power which they sometimes ignore the interest of the shareholders.

7. Conflict in interests:-
There may be a conflict of interest amongst various stakeholders of a company. It affects the smooth functioning of the company.

8. Lack of motivation:-
The company is managed by a board of directors. They have little interest to protect the interest of the company.

Types of Companies
A company can be either a private or a public company.

Question 5.
Briefly, explain different types of co-operative society.
Answer:
Types of co-operative society
1. Consumer’s cooperative societies:-
The consumer cooperative societies are formed to protect the interests of consumers. The society aims at eliminating middlemen to achieve economy in operations. It purchases goods in bulk directly from the wholesalers and sells goods to the members at the lowest price.

2. Producer’s cooperative societies:-
These societies are set up to protect the interest of small producers. It supplies raw materials, equipment and other inputs to the members and also buys their output for sale.

3. Marketing cooperative societies:-
Such societies are established to help small producers in selling their Products. It collects the output of individual members and sell them at the best possible price. Profits are distributed to members.

4. Farmer’s cooperative societies:-
These societies . are established to protect the interests of farmers by providing better inputs at a reasonable cost. Such societies provide better quality seeds, fertilisers, machinery and other modern techniques for use in the cultivation of crops.

5. Credit cooperative societies:-
Credit cooperative societies are established for providing easy credit on reasonable terms to the members. Such societies provide loans to members at low rates of interest.

You can Download International Business – I Questions and Answers, Notes, Plus One Business Studies Chapter Wise Questions and Answers Kerala Chapter 11 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Chapter Wise Questions and Answers Chapter 11 International Business – I

1 Mark Questions and Answers

Question 1.
In which of the following modes of entry, does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee.

a) Licensing
b) Contract manufacturing
c) Joint venture
d) None of these
Answer:
a) Licensing

Question 2.
Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as
a) Licensing
b) Franchising
c) Contract manufacturing
d) Joint venture
Answer:
c) Contract manufacturing

Question 3.
When two or more firms come together to create a new business entity that is legally separate and distinct from its parents. It is known as
Answer:
Joint venture

Question 4.
Which one of the following modes of entry requires a higher level of risks?
Answer:
Joint venture

Question 5.
Which one of the following modes of entry permits the greatest degree of control over overseas operations?
Answer:
Wholly owned subsidiary

Question 6.
Which one of the following modes of entry brings the firm closer to international market.
Answer:
Licensing/Franchising

Question 7.
Buying and selling of goods and services between the two countries are called……….
Answer:
Foreign trade

2 Mark Questions and Answers

Question 8.
Differentiate between international trade and international business.
Answer:
International trade consists of imports and exports of goods. But international business is a much broader term and is comprised of both the trade and production of goods and services across the countries.

Question 9.
Distinguish between licensing and franchising.
Answer:
Licensing is used in connection with the production and distribution of goods. But the term franchising is used in connection with service business. Franchising is relatively more stringent than licensing.

4 Mark Questions and Answers

Question 10.
Enumerate limitations of contract manufacturing.
Answer:
Mode of Entry into International Business

1. Exporting and Importing:
When goods are sold to a foreign country, it is called export trade. When goods are purchasing from a foreign country, it is called import trade.

Advantages

• It is the easiest way of gaining entry into international markets.
• Business firms are not required to invest that much time and money in host countries.
• It is less risky as compared to other modes of. entry into international business

Limitations

• It involves additional packaging, transportation, and insurance costs.
• Exporting is not possible in case the foreign country restricts imports.
• The export firms do not have much contact with the foreign markets.

2. Contract Manufacturing (Outsourcing):
When a firm enters into a contract with one or a few local manufacturers in foreign countries to get certain goods produced as per its specifications it is called contract manufacturing. It is also known as outsourcing and it can take place in the following forms.

• Production of certain components
• Assembly of components into final products
• Complete manufacture of the products

Advantages

• It Permits international firms to get the goods produced on a large scale without requiring investment in setting up production facilities.
• There is no investment risk involved in foreign countries.
• It helps to get the products at lower cost
• Local producers in foreign countries can ensure greater utilization of their idle production capacities.

Limitations

• It may affect the quality of the products.
• Local manufacturer in the foreign country loses his control over the manufacturing process because goods are produced strictly as per the terms and specifications of the contract.
• The local firm cannot sell the contracted output as per their will.

3. Licensing and Franchising:
Licensing is a contractual arrangement in which one firm grant access to its patents, trade secrets or technology to another firm in a foreign country for a fee called royalty. The firm that grants permission is known as licensor and the firm that receives the right to use technology or patents is called the licensee.

Franchising is similar to licensing. But it is used in connection with the provision of services. The parent company is called the franchiser and the other party to the agreement is called franchisee.

Advantages

• It is a less expensive mode of entering into international business.
• There is no investment risk
• Since the business in a foreign country is managed by the licensee/franchisee who is a local person, there are lower risks of business takeovers or government interventions.
• Since licensee/franchisee is a local person, he has greater market knowledge and customer contacts. It helps the licensor/franchiser in successfully conducting its marketing operations.

Limitations

• The licensee can start marketing an identical product under a slightly different brand name.
• Trade secrets may lose in foreign markets.
• Conflicts often develop between the licensor/ franchiser and licensee/franchisee over issues such as maintenance of accounts, payment of royalty, etc.

4. Joint Ventures:
Joint venture means establishing a firm that is jointly owned by two or more independent firms. It can be brought into existence in three major ways.

• Foreign investors buying an interest in a local firm.
• Local firms acquiring an interest in an existing foreign firm.
• Both the foreign and local entrepreneurs jointly forming a new enterprise.

Advantages

• Since the local partner also contributes to the equity capital, the international firm has less financial burden to expand the business globally.
• It helps to execute large projects requiring huge capital outlays and manpower.
• The foreign business firm benefits from local partner’s knowledge of the host countries.
• The foreign business firm shares costs and risks with local partners. So they can enter into the foreign markets very easily and without high risk.

Limitations

• Foreign firms entering into joint ventures share the technology and trade secrets with local firms. It leads to leakage of technology and secrets to others.
• The dual ownership arrangement may lead to conflicts

5. Wholly Owned Subsidiaries:
The parent company (holding company) acquires full control over the foreign company by making 100% investment in its equity capital. It is called wholly-owned subsidiaries. It can be established in either of the two ways. i.e.

• Setting up a new firm altogether to start operations in a foreign country.
• Acquiring an existing firm in the foreign country.

Advantages

• The parent firm is able to exercise full control over its operations in foreign countries.
• It is not required to disclose its technology or trade secrets to others.

Limitations

• It is not suitable for small and medium-size firms which do not have enough funds to invest abroad.
• The parent company alone has to bear the entire losses.
• It is subject to higher political risk.

5 Mark Questions and Answers

Question 11.
Sri. Swamynathan, a pure Gandhian, is of the view that India should never go for international trade for it results in draining out of scarce resources, dampen the domestic trade and this will lead to the complete destruction of our nation. How do you evaluate Mr. Swamynathan’s statement?
Answer:
Benefits of International Business:
The benefits of international business to the nations and business firms are:

Benefits to Nations
1. Earning of foreign exchange:
It helps a country to earn foreign exchange which can be used for importing capital goods, technology, petroleum products, and fertilisers, pharmaceutical products, etc.

2. More efficient use of resources:
External trade enables a country to utilize the available resources in the best possible manner.

3. Improving growth prospects and employment potentials:
External trade helps to accelerate the economic growth and employment opportunities of a country.

4. Increased standard of living:
Foreign trade helps in raising the standard of living of a country.

5. International relation:
External trade helps to promote harmonious and cordial relationship among the nations.

Benefits to Firms
1. Prospects for higher profits:
When the domestic prices are lower, business firms can earn more profits by selling their products in countries where prices are high.

2. Increased capacity utilisation:
It helps firms in using their surplus production capacities and improving the profitability of their operations. Large scale production helps to reduce the cost of production.

3. Prospects for growth:
It helps firms in improving their growth prospects by creating demands for their products in foreign countries.

4. Enhances competition:
External trade enhances competition, which compels the domestic firms to improve the technology of production, production process and quality of the products.

5. Improved business vision:
It improves business vision as it makes firms to grow, more competitive and diversified.

6 Mark Questions and Answers

Question 12.
Discuss briefly the factors that govern the choice of mode of entry into international business.
Answer:
Mode of Entry into International Business

1. Exporting and Importing:
When goods are sold to a foreign country, it is called export trade. When goods are purchasing from a foreign country, it is called import trade.

Advantages

• It is the easiest way of gaining entry into international markets.
• Business firms are not required to invest that much time and money in host countries.
• It is less risky as compared to other modes of. entry into international business

Limitations

• It involves additional packaging, transportation, and insurance costs.
• Exporting is not possible in case the foreign country restricts imports.
• The export firms do not have much contact with the foreign markets.

2. Contract Manufacturing (Outsourcing):
When a firm enters into a contract with one or a few local manufacturers in foreign countries to get certain goods produced as per its specifications it is called contract manufacturing. It is also known as outsourcing and it can take place in the following forms.

• Production of certain components
• Assembly of components into final products
• Complete manufacture of the products

Advantages

• It Permits international firms to get the goods produced on a large scale without requiring investment in setting up production facilities.
• There is no investment risk involved in foreign countries.
• It helps to get the products at a lower cost
• Local producers in foreign countries can ensure greater utilization of their idle production capacities.

Limitations

• It may affect the quality of the products.
• Local manufacturer in the foreign country loses his control over the manufacturing process because goods are produced strictly as per the terms and specifications of the contract.
• The local firm cannot sell the contracted output as per their will.

3. Licensing and Franchising:
Licensing is a contractual arrangement in which one firm grant access to its patents, trade secrets or technology to another firm in a foreign country for a fee called royalty. The firm that grants permission is known as licensor and the firm that receives the right to use technology or patents is called the licensee.
Franchising is similar to licensing. But it is used in connection with the provision of services. The parent company is called the franchiser and the other party to the agreement is called franchisee.

Advantages

• It is a less expensive mode of entering into international business.
• There is no investment risk
• Since the business in a foreign country is managed by the licensee/franchisee who is a local person, there are lower risks of business takeovers or government interventions.
• Since licensee/franchisee is a local person, he has greater market knowledge and customer contacts. It helps the licensor/franchiser in successfully conducting its marketing operations.

Limitations

• The licensee can start marketing an identical product under a slightly different brand name.
• Trade secrets may lose in foreign markets.
• Conflicts often develop between the licensor/ franchiser and licensee/franchisee over issues such as maintenance of accounts, payment of royalty, etc.

4. Joint Ventures:
Joint venture means establishing a firm that is jointly owned by two or more independent firms. It can be brought into existence in three major ways.

• Foreign investors buying an interest in a local firm.
• Local firms acquiring an interest in an existing foreign firm.
• Both the foreign and local entrepreneurs jointly forming a new enterprise.

Advantages

• Since the local partner also contributes to the equity capital, the international firm has less financial burden to expand the business globally.
• It helps to execute large projects requiring huge capital outlays and manpower.
• The foreign business firm benefits from local partner’s knowledge of the host countries.
• The foreign business firm shares costs and risks with a local partner. So they can enter into the foreign markets very easily and without high risk.

Limitations

• Foreign firms entering into joint ventures share the technology and trade secrets with local firms. It leads to leakage of technology and secrets to others.
• The dual ownership arrangement may lead to conflicts.

5. Wholly Owned Subsidiaries:
The parent company (holding company) acquires full control over the foreign company by making 100% investment in its equity capital. It is called wholly-owned subsidiaries. It can be established in either of the two ways. i.e.

• Setting up a new firm altogether to start operations in a foreign country.
•  Acquiring an existing firm in the foreign country.

Advantages

• The parent firm is able to exercise full control over its operations in foreign countries.
• It is not required to disclose its technology or trade secrets to others.

Limitations

• It is not suitable for small and medium-sized firms that do not have enough funds to invest abroad.
• The parent company alone has to bear the entire losses.
• It is subject to higher political risk.

8 Mark Questions and Answers

Question 13.
What is an international business? How is it different from domestic business.
Answer:
Differences between International Business and Domestic Business

You can Download International Business – II Questions and Answers, Notes, Plus One Business Studies Chapter Wise Questions and Answers Kerala Chapter 12 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Chapter Wise Questions and Answers Chapter 12 International Business – II

1 Mark Questions and Answers

Question 1.
The document containing the guarantee of a bank to honour drafts drawn on it by an exporter is.
Answer:
Letter of credit.

Question 2.
TRIP is one of the WTO agreements that deal with.
Answer:
Trade-related aspects of intellectual property.

Question 3.
RCMC means
Answer:
Registration Cum Membership Certificate.

Question 4.
Which of the following documents is not required for obtaining an export license?

1. IEC number
2. Letter of credit
3. Registration cum membership certificate
4. Bank account number

Answer:
2. Letter of credit

Question 5.
Which of the following document is not required for an import of transaction?

1. Bill of lading
2. Shipping bill
3. Certificate of origin
4. Shipment advice

Answer:
4. Shipment advice.

Question 6.
Which one of the following is not a part of export documents?

1. Commercial invoice
2. Certificate of origin
3. Bill of entry
4. Mate’s receipt

Answer:
3. Bill of entry.

Question 7.
A receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known as……..

1. Shipping receipt
2. Mate’s receipt
3. Cargo receipt
4. Charter receipt

Answer:
2. Mate’s receipt.

Question 8.
Which of the following documents is prepared by the exporter and includes details of the cargo in terms of the shipper’s name, the number of packages, the shipping bill, port of destination, name of the vehicle carrying the cargo?

1. Shipping bill
2. Packaging list
3. Mate’s receipt
4. Bill of exchange

Answer:
1. Shipping bill.

Question 9.
The document containing the guarantee of a bank to honour drafts drawn on it by an exporter is

1. Letter of hypothecation
2. Letter of credit
3. Bill of lading
4. Bill of exchange

Answer:
2. Letter of credit

Question 10.
“It gives birth to a foreign territory within the home country for trading and for imposing duties”. What is referred to in this statement

1. EPZ
2. SEZ
3. Superstar trading houses
4. Deemed exports

Answer:
2. SEZ

Question 11.
This is a document stating the value and quantity of goods entering the country from abroad. It is submitted to the customs office either by the importer or his agent. What is this document?
Answer:
Bill of lading.

Question 12.
EPZ means…….

1. Advertisement
2. warehousing
3. insurance
4. transport

Answer:
Export Processing Zone

Question 13.
provides an internationally competitive and duty-free environment for the production of export goods.
Answer:
Special Economic Zone (SEZ)

2 Mark Questions and Answers

Question 1.
What is the IEC number?
Answer:
IEC means Importer’s Exporter’s Code Number. His number is to be filled within various papers connected with exports and imports.

3 Mark Questions and Answers

Question 1.
Answer the following in a word or phrase.

1. The document prepared by the master of the ship acknowledging the receipt of good.
2. The document issued as proof of the fact that goods have been produced in the country mentioned on it.
3. The document forwarded by the exporter to the importer after the shipment of goods.
4. The document issued by the dock authority after receiving the goods from the exporters.
5. The document needed in sending goods by air.
6. Document which acts as proof that goods of stated value and quantity are being brought into the country from abroad.

Answer:

1. Bill of Lading
2. Certificate of origin
3. Export Invoice/Foreign Invoice
4. Dock Receipt
5. Airway Bill
6. Bill of Entry.

Question 2.
What do you mean by Bill of lading? Explain its features.
Answer:
Bill of lading is a document issued by the shipping company after the cargo is loaded on the ship. It is an acknowledgement of the receipt of goods by the shipping company.

Features of Bill of lading

• It is an acknowledgement of the receipt of goods by the shipping company.
• It is a document which shows the title to the goods
• It is evidence of the contract of shipment.

4 Mark Questions & Answers:

Question 1.
Discuss the formalities involved in getting an export license.
Answer:

• Opening a bank account.
• Obtaining Import Export Code (IEC) number from the Directorate General Foreign Trade (DGFT)
• Registering with the appropriate export promotion council.
• Registering with Export Credit and Guarantee Corporation.

Question 2.
What is the bill of lading? How does it differ from the bill of entry?
Answer:
Bill of lading:
It is a document issued by the shipping company after the cargo is loaded on the ship. It is an acknowledgment of goods by the shipping company. It is a document which shows the title to the goods and is freely transferable by endorsement and delivery.

Bill of Entry:
It is a form supplied by the customs office to the importer who filled it at the time of receiving the goods. It has to be in triplicate and is to be submitted to the customs office. It contains information such as name and address of the importer, name of the ship, number of packages, description of goods, quantity and value of goods, name, and address of the exporter, port of destinations, customs duty payable, etc.

Question 3.
Name the documents used in external trade
Answer:
Indent
– Letter of Credit      – Bill of Lading
– Advice Letter         – Documentary Bill
– Insurance Policy    – Shipping order
– Shipping bill          – Mates Receipt
– Consular Invoice   – Certificate of origin
– Airway bill             – Export Invoice/Foreign Invoice
– Bill of Entry

5 Mark Questions and Answers

Question 1.
Name the document referred to in each of the following cases.

1. Agreement signed with the shipping company to enable us to put goods on the ship.
2. Document issued by the captain of the ship after loading the goods on the ship.
3. Assured payment on the strength of a document issued by the importer’s bank.
4. Document which authorises the bank to sell the goods in case of dis honour of bill.
5. Document received in exchange for Mate’s Receipt at the shipping office.

Answer:

1. Shipping order
2. Mate’s Receipt
3. Letter of credit
4. Letter of Hypothecation
5. Bill of Lading

Question 2.
Write a detailed note on the features, structure, objectives, and functioning of WTO.
Answer:
World Trade Organisation :
The General Agreement for Tariffs and Trade (GATT) was transformed into the World Trade Organisation (WTO) with effect from 1 st January 1995. The headquarters of the WTO are situated in Geneva, Switzerland. The World Trade Organization deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. It is concerned with solving trade problems between countries and providing a forum for multilateral trade negotiations. It has a global status similar to that of the IMF and the World Bank. India is a founding member of WTO.

Objectives of WTO:

• To ensure a reduction of tariffs and other trade barriers imposed by different countries.
• To engage in activities which improve the standards of living, create employment, increase Income, facilitate higher production and trade.
• To facilitate the optimal use of the world’s resources.
• To promote an integrated, more viable and durable trading system.

Functions of WTO:

• To remove barriers to international trade.
• Act as a dispute settlement body.
• To ensure that all the rules regulations prescribed in the Act are duly followed by the member countries for the settlement of their disputes.
• Laying down a commonly accepted code of conduct for international trade.
• To consult with IMF, IBRD and its affiliated agencies to bring better understanding and cooperation in global economic policymaking.

Benefits of WTO:

• It helps to promote international peace and facilitates international business.
• All disputes between member nations are settled with mutual consultations.
• It makes international trade and relations very smooth and predictable.
• Free trade improves the standard of living of the people by increasing the income level.
• Free trade provides an opportunity for getting varieties of qualitative products.
• Economic growth has been increased.

6 Mark Questions and Answers

Question 1.
Write short notes on

1. Bill of lading
2. Bill of entry
3. Letter of credit
4. Mate’s receipt
5. Certificate of origin
6. Shipping bill

Answer:
Documents for Export Transaction
A. Documents related to goods:

1. Export Invoice:
It is a seller’s bill which contains information about goods like quantity, number of packages, marks on packing, name of the ship, port of destination, terms of delivery &, payments, etc.

2. Packing List:
A packing list is a statement of the number of cases or packs and the details of the goods contained in these packs.

3. Certificate of Origin:
This is a certificate that specifies the country in which the goods are being produced. This certificate enables the importer to claim tariff concessions or other exemptions.

4. Certificate of Inspection:
For ensuring quality, the government has made an inspection of certain goods compulsory by some authorised agency like the export Inspection council of India (EICI), etc. After inspecting the goods, the agency issues a certificate of inspection that the consignment has been inspected as required under the export (Quality Control & Inspection) Act, 1963.

B. Documents Related to Shipment:

1. Mate’s Receipt:
A mate receipt is a receipt issued by the commanding officer of the ship when the cargo is loaded on board and contains the information about the name of the vessel, berth, date of shipment, description of packages, condition of the cargo at the time of receipt on board the ship, etc.

2. Shipping Bill:
The shipping bill is the main document on the basis of which customs office grants permission for the export. It contains full details regarding the goods being exported name of the vessel, exporter s name & address, country of final destination, etc.

3. Bill of lading:
It is a document issued by the shipping company after the cargo is loaded on the ship. It is an acknowledgment of goods by the shipping company. It is a document that shows the title to the goods and is freely transferable by endorsement and delivery.

4. Airway Bill:
It is a document issued by the airline company acknowledging the receipt of goods for transshipment through air carriage.

5. Marine Insurance Policy:
It is a certificate of insurance contract whereby the insurance company agrees in consideration of premium to indemnify the insured against loss incurred by perils of the sea.

6. Cart Ticket:
It is also known as cart chit or gate pass. It is prepared by the exporter and contains details regarding export cargo like a number of packages, shipping bill number, port of destination, etc.

C. Document related to payment:

1. Letter of credit:
A letter of credit is a guarantee issued by the importer’s bank that it will honour up to a certain amount the payment of export bills to the bank of the exporter.

2. Bill of Exchange:
In export & import transaction, the exporter draws the bill on the importer asking him to pay a specified amount to a certain person or the bearer of the instrument. The documents required by the importer for claiming the title of exported goods are passed on to him only when the importer accepts this bill.

3. Bank Certificate of Payment:
It is a certificate that the necessary documents relating to the particular export consignment have been negotiated and payment has been received in accordance with the exchange control regulations.

Documents used in an Import Transaction

1. Trade enquiry
2. Proforma invoice
3. Import order or indent
4. Letter of credit
5. Shipment advice
6. Bill of lading
7. Airway Bill
8. Bill of entry

Bill of entry:
It is a form supplied by the customs office to the importer who filled it at the time of receiving the goods. It has to be in triplicate and is to be submitted to the customs office. It contains information such as name and address of the importer, name of the ship, number of packages, description of goods, quantity and value of goods, name, and address of the exporter, port of destinations, customs duty payable, etc.

Question 2.
What is IMF? Discuss its various objectives and functions.
Answer:
Trade Agreements:
At the international level, there are various international organisations such as the World Bank, IMF, and WTO for fostering economic cooperation, trade and investments . among the countries.

1. World Bank
The International Bank for reconstruction and development i.e. World Bank was established in 1945, whose main objectives were to aid the task of reconstruction of the war-affected economies of Europe and assist in the development of the underdeveloped nations of the world.
Functions:

• To bring about economic growth and widen the scope of international trade.
• To develop infrastructural facilities such as energy, transportation, etc.
• To help different countries for raising cash crops so that their income rises.
• In addition to providing financial assistance for infrastructure development, agriculture, industry, health, etc.

2. International Development Association (IDA)
International Development Association (IDA) was set up in 1960 as a part of the World Bank. IDA was established soft loans primarily to provide soft loans to the poorest countries. So it is called the Soft Loan Window of the IBRD.
Objectives of IDA

• To provide development finance on easy terms to the less developed countries
• To provide assistance for poverty eradication in the poorest countries
• To provide finance at concessional interest rates in order to promote economic development, raise productivity and living standards in less developed nations
• To extend macroeconomic management services relating to health, education, nutrition, human resource development and population control.

3. International Finance Corporation (IFC)
IFC was established in July 1956 in order to provide finance to the private sector of developing countries. All the members of the World Bank are eligible to become members of IFC.

4. The Multinational Investment Guarantee Agency (MIGA)
The Multinational Investment Guarantee Agency was established in April 1988 to supplement the functions of the World Bank and IFC.
Objectives of MIGA

• To encourage direct foreign investment into the developing countries
• To provide insurance cover to investors against political risks
• To provide guarantee against non-commercial risks
• To ensure new investments and expansion of existing investments
• To provide promotional and advisory services
• To establish credibility.

5. International Monetary Fund (IMF) International Monetary Fund: – it is the second international organization next to the World Bank. It came into existence in 1945 and its objective is the maintenance of exchange rates and providing short term loans to the countries facing short term foreign exchange problems.
Objectives of IMF

• To provide international monetary cooperation through a permanent institution.
• To facilitate the expansion of the balanced growth of international trade and to promote and maintain high levels of employment.
• To promote exchange rate stability among member countries.
• To help in the establishment of the International Payment System.

6. World Trade Organisation (WTO)

8. Mark Questions and Answers

Question 1.
What is the World Bank? Discuss its various objectives and role of its affiliated agencies.
Answer:
Trade Agreements:-
At the international level, there are various international organisations such as the World Bank, IMF, and WTO for fostering economic cooperation, trade and investments . among the countries.

1. World Bank
The International Bank for reconstruction and development i.e. World Bank was established in 1945, whose main objectives were to aid the task of reconstruction of the war-affected economies of Europe and assist in the development of the underdeveloped nations of the world.
Functions:

• To bring about economic growth and widen the scope of international trade.
• To develop infrastructural facilities such as ‘ energy, transportation, etc.
• To help different countries for raising cash crops so that their income rises.
• In addition to providing financial assistance for infrastructure development, agriculture, industry, health, etc.

2. International Development Association (IDA)
International Development Association (IDA) was set up in 1960 as a part of the World Bank. IDA was established soft loans primarily to provide soft loans to the poorest countries. So it is called the Soft Loan Window of the IBRD.
Objectives of IDA:

• To provide development finance on easy terms to the less developed countries
• To provide assistance for poverty eradication in the poorest countries
• To provide finance at concessional interest rates in order to promote economic development, raise productivity and living standards in less developed nations
• To extend macroeconomic management services relating to health, education, nutrition, human resource development and population control.

3. International Finance Corporation (IFC)
IFC was established in July 1956 in order to provide finance to the private sector of developing countries. All the members of the World Bank are eligible to become members of IFC.

4. The Multinational Investment Guarantee Agency (MIGA)
The Multinational Investment Guarantee Agency was established in April 1988 to supplement the functions of the World Bank and IFC.
Objectives of MIGA

• To encourage direct foreign investment into the developing countries
• To provide insurance cover to investors against political risks
• To provide guarantee against non-commercial risks
• To ensure new investments and expansion of existing investments
• To provide promotional and advisory services
• To establish credibility.

5. International Monetary Fund (IMF) International Monetary Fund: –
It is the second international organization next to the World Bank. It came into existence in 1945 and its
objective is the maintenance of exchange rates and providing short term loans to the countries facing short term foreign exchange problems.
Objectives of IMF

• To provide international monetary cooperation through a permanent institution.
• To facilitate the expansion of balanced growth of international trade and to promote and maintain high levels of employment.
• To promote exchange rate stability among member countries.
• To help in the establishment of the International Payment System.

6. World Trade Organisation (WTO)

Question 2.
Mr. Prakash has got an opportunity to take part in a business meeting. He meets an exporter of certain fast-moving consumer goods from America. He describes the profitability of these products if they are distributed in India. Mr. Prakash, after hearing this, shows his interest in importing the goods but is unaware of the procedure of import. Can you help him?
Answer:
Import Procedure

1. Trade enquiry:
It is a written request by the importer to the exporters for the supply of relevant information regarding the price, quality, quantity and various terms and conditions of export, etc. Then, the exporter prepares the quotation and sends it to the importer. The quotation is known as a proforma invoice.

2. Obtaining import license:
In India, it is compulsory to get the IEC number from the Directorate General Foreign Trade ( DGFT).

3. Obtaining foreign exchange:
As foreign exchange transactions are controlled by Reserve Bank of India, the importer has to submit an application along with necessary documents to the RBI to issue foreign exchange.

4. Placing order or indent:
After obtaining the import license, the importer places an import order or indent with the exporter for the supply of the specified products. It contains information about the price, quality, quantity of goods ordered, ports of shipment and destination, etc.

5. Obtaining a letter of credit:
The importer must obtain a letter of credit from his bank and send it to the exporter.

6. Arranging for finance:
The importer should make arrangements in advance to pay to the exporter on the arrival of goods at the port.

7. Receipt of shipment advice:
After loading the goods on the ship, the exporter dispatches the shipment advice to the importer. Shipment advice contains information about the shipment of goods.

8. Retirement of import documents:
After shipping the goods, the overseas supplier prepares necessary documents and hands over to his banker for their onward transmission to the importer when he accepts the bill of exchange. The acceptance of a bill of exchange for the purpose of getting delivery of the documents is known as the retirement of import documents.

9. Arrival of goods:
When the goods arrive in the importer’s country, the person in charge of the carrier informs the officer in charge at the dock or the airport about it. He provides a document called import general manifest for unloading of cargo. Import general manifest is a document that contains the details of the imported goods.

10. Customs clearance and release of goods:
All the goods imported into India have to pass through customs clearance after they cross the Indian borders. The importer must fulfill the following formalities for clearing the goods.

• Endorsement for delivery
• Payment of dock charges
• Bill of entry

Question 3.
Mr. Babu is running a ready-made garment manufacturing unit. He has got an order in the B2B meet held at Kochi, to export ready-made garments to Europe. How can execute it? Explain the procedure.
Answer:
Export Procedure

1. Receipt of enquiry and sending quotations:
The prospective buyer of a product sends an enquiry to different exporters requesting them to send information about price, quality, terms of payment, etc. The exporter sends a reply to the enquiry in the form of a quotation referred to as a proforma invoice.

2. Receipt of order or indent:
If the buyer is satisfied with the export price and other terms and conditions, he places the order or indent for the goods.

3. Assessing importer’s creditworthiness and securing a guarantee for payments: After receipt of the indent, the exporter makes a necessary enquiry about the creditworthiness of the importer. To minimise the risk, most exporters demand a letter of credit from the importer.

4. Obtaining an export license:
The exporter must apply for an export license to the appropriate authority. The following procedure is followed for obtaining the export license.

• Opening a bank account in any bank authorised by the Reserve Bank of India
• Obtaining Import Export Code (IEC) number
• Registration cum Membership Certificate (RCMC) from appropriate export promotion council
• Registering with Export Credit and Guarantee Corporation (ECGC) in order to safeguard against risks of non-payments.

5. Obtaining pre-shipment finance:
After obtaining the export license, the exporter approaches his banker in order to obtain pre-shipment finance for carrying out production.

6. Production or procurement of goods:
Exporter, after obtaining the pre-shipment finance from the bank, proceeds to get the goods ready as per the orders of the importer.

7. Pre-shipment inspection:
Quality control and pre-shipment inspection is compulsory in India as per Quality Control and Inspection Act. The inspection certificate is provided by the Export Inspection Council. The customs authority permits the shipment of goods only if there is an inspection certificate.

8. Excise clearance:
According to the Central Excise Tariff Act, excise duty on the material used in manufacturing goods is to be paid. For this purpose, the exporter applies to the concerned Excise Commissioner in the region with an invoice. But in many cases, the government exempts payment of excise duty or later on refunds it if the goods so manufactured are meant for exports. The refund of excise duty is known as duty drawback.

9. Obtaining certificate of origin:
In order to obtain Tariff concessions or other exemptions, the importer may ask the exporter to send the certificate of origin.

10. Reservation of shipping space:
The exporting firm applies to the shipping company for the provision of shipping space. Then the shipping company issues a shipping order. A shipping order is an instruction to the captain of the ship that the specified goods after their customs clearance at a designated port be received on board.

11. Packing and forwarding:
The goods are then properly packed and marked with necessary details such as name and address of the importer, gross and net weight, port of shipment and destination, country of origin, etc. The exporter then makes necessary arrangements for the transportation of goods to the port.

12. Insurance of goods:
In order to protect the goods against the risk of loss or damage the exporter gets the goods insured with an insurance company.

13. Customs clearance:
The goods must be cleared from the customs before these can be loaded on the ship. For obtaining customs clearance, the exporter prepares the shipping bill. The shipping bill contains particulars of the goods being exported, the name of the ship, the port at which goods are to be discharged, exporter’s name and address, etc. Five copies of the shipping bill along with the following documents are then submitted to the Customs Appraiser at the Customs House:

• Export Contract or Export Order
• Letter of Credit
• Commercial Invoice
• Certificate of Origin
• Certificate of Inspection, where necessary
• Marine Insurance Policy

14. Obtaining mates receipt:
A mate receipt is a receipt issued by the commanding officer of the ship when the cargo is loaded on board and contains the information about the name of the vessel, berth, date of shipment, description of packages, condition of the cargo at the time of receipt on board the ship, etc.

15. Payment of freight and issuance of bill of lading:
The clearing & forwarding agent (C&F agent) hands over the mate s receipt to the shipping company for the computation of freight. After receipt of the freight, the shipping company issues a bill of lading which serves as evidence that the shipping company has accepted the goods for carrying to the designated destination.

16. Preparation of invoice:
The exporter prepares an invoice for the dispatched goods. Invoice contains information regarding the quantity of goods & sent the amount to be paid by the importer. It is duly attested by the customs.

17. Securing payment:
After the shipment of goods, the exporter informs the importer about the shipment of goods. Various documents like a certified copy of invoice, bill of lading, packing list, insurance policy, certificate of origin and letter of credit are sent by the exporter through his bank. These documents are required by the importer for getting the goods cleared from customs. The exporter gets payment from his bank on the submission of necessary documents called negotiations of the documents.

Question 4.
India is an active participant in the global economy. Foreign trade has a prominent role in reaping the benefits of this phenomenon. In this context does the government take any measures to promote foreign trade? Do you think that the Government motivates the Indian entrepreneurs towards this end? Cite examples.
Answer:
Foreign Trade Promotion Measures and Schemes.

1. Duty drawback scheme:
It refers to the refund of customs and excise duties paid on imported inputs used in the manufacture of export goods.

2. Export manufacturing under bond scheme: Under this facility firms can produce goods without payment of excise and other duties. The firms can avail this facility after giving an undertaking (i.e. bond) that they are manufacturing goods for export purposes.

3. Exemption from payment of sales taxes:
Goods meant for export purposes are not subject to sales tax. Income derived from export operations had been exempt from payment of income tax. Now, this benefit of exemption from income tax is available only to 100 percent Export Oriented Units (100 percent EOUs) and units set up in Export Processing Zones (EPZs) or Special Economic Zones (SEZs) for selected years.

4. Advance license scheme: It is a scheme under which an exporter is allowed duty-free supply of domestic as well as imported inputs required for the manufacture of export goods.

5. Export Promotion Capital Goods Scheme (EPCG): The main objective of this scheme is to encourage the import of capital goods for export production. This scheme allows export firms to import capital goods at zero or concessional rates of import duty.

6. Scheme of recognising export firms as an export house, trading house and superstar
trading house: The registered exporters having a record of export performance over a number of years are granted the status of export houses/ trading houses/star trading houses/superstar trading houses subject to the fulfillment of annual average export performance.

7. Export of Services: In order to boost the export of services, various categories of service houses have been recognised, i.e. Service Export House, International Service Export House, International Star Service Export House.

8. Export finance: Two types of export finances are made available to the exporters by authorised banks. They are termed as pre-shipment finance and post-shipment finance. Pre-shipment finance is provided to an exporter for financing the purchase, processing, manufacturing or packaging of goods for export purposes. Post-shipment finance is provided to the exporter from the date of extending the credit after the shipment of goods to the export country.

9. Export Processing Zones (EPZs): They are industrial estates, which form special enclaves separated from the domestic tariff areas. These are usually situated near seaports or airports. They are intended to provide an internationally competitive duty-free environment for export production at low cost. They can import capital goods and raw materials for the production of export goods without a license.

10. 100 percent Export Oriented Units (100 percent EOUs): These units are established with the main purpose of exporting their entire production except those which are specifically permitted to be sold in the domestic market.

11. Special Economic Zone (SEZ): It is specifically a delineated duty-free enclave, which is deemed to be foreign territory for the purpose of trading and imposing duties. It provided an internationally competitive and duty-free environment for the production of export of goods.

You can Download Islamic Countries of the Middle Ages Questions and Answers, Notes, Plus One History Chapter Wise Questions and Answers Kerala Chapter 4 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One History Chapter Wise Questions and Answers Chapter 4 Islamic Countries of the Middle Ages

Question 1.
There are many sources that give us information about the Islamic Countries of the Middle Ages. Give details.
Answer:
We get information about the Islamic Countries of the Middle Ages from 600 to 1200 AD for the Chronicles, semi-historical biographies, documents . of the words and deeds of the Prophet and from the interpretations of the Quran. All these were prepared from eye-witness descriptions. Each note of the eye-witness was examined through critical methods and only after ensuring its veracity and the authenticity of the author it was accepted for inclusion in the documents.

Most of the Chronicles and semi-historical biographies are written in Arabic. The best of them is Tareekh-al-Tabari. This is translated into English in 38 volumes. Although the number of Persian Chronicles are few, there are detailed descriptions about Iran and Central Asia. It was only in the 19^th century, proper histories of Islam began to be written. Professors in Germany and Netherlands were the ones who initiated this project.

Question 2.
Islam Religion originated in Arabia. Based on this statement, prepare a seminar paper on the origin, faith, community and politics of Islam.
Areas to be considered: The tribal living of the Arabs, Prophet Mohammed, faith and worship, the community of believers, political system.
Answer:
Islam Religion originated in Arabia. It was started by Prophet Mohammed in the 7^th century. By language and culture, Prophet Mohammed was an Arab. His family profession was trade. The Arabs lived in different tribal groups at that time. Each tribe had a tribal head. The heads were chosen on the basis of courage, intelligence, generosity and family relations.

Mohammed was born and brought up in the Quraysh tribe. There was a temple called Kaaba in Mecca. In that, there was a Black Stone and many other idols. The Kaaba temple was in the control of the Quraysh tribe. Even the tribes outside Mecca considered Kaaba a holy temple and placed their own idols here. Mecca is situated on a trade route between Yemen and Syria.

This increased the importance of Mecca. The temple in Mecca was a holy place. Their violence was prohibited. All visitors were given protection. Therefore Mecca was known as a holy city. Mohammed, the founder of Islam, propagated belief in one God and membership in one community (Umma). It was from here that Islam originated.

In 612 AD Mohammed declared that he was the Prophet of God. He formulated a religion which was based on monotheism. He declared that he was asked by God to propagate the worship of only one God. The goal of Prophet Mohammed was establishing a community of believers. This community has to testify its. existence before God and also other religious communities.

The message of Prophet Mohammed attracted the people of Mecca. They had thought that they had lost the advantages, of religion and trade and they were waiting for a new identity. The people who accepted the principles enunciated by Prophet Mohammed were known as Muslims.

They were promised heaven on the Day of Judgment and part of the wealth of the community during their earthly life. Soon the Muslims faced opposition from the nobles of Mecca. The denial of their gods by the Muslims made them worried. They looked at the new religion as a threat to the dignity and progress of Mecca. So they tried to persecute the followers of Mohammed and to kill Mohammed himself.

In 622AD Mohammed and his followers fled Mecca to Medina. This incident is known as ‘Hijra’ and it was a turning point in the history of Islam. A new Muslim calendar was started in the year in which Mohammed reached Medina (622).

The survival of a religion depends on the survival of its followers. The community of the believers should be coordinated internally and it should be protected from external dangers. For such coordination and protection, some political institution like the nation or government is needed. These political institutions can be formed from three sources; a. from the past (traditional), b. borrowing from outside and c. make something new.

Mohammed became the ruler and religious head of Medina and he established a strong administration. With this Islam became stronger. In 630 AD he conquered Mecca. With this, Prophet Mohammed’s prestige spread everywhere as a ruler as well as a religious head. Since Islam started in the difficult circumstances of a desert land, Arabs gave a lot of importance to power and unity.

Question 3.
The most important reform in the Muslim community was the formation of Khalifa rule. Explain.
Answer:
The most important reform in the Muslim community was the formation of Khalifa rule. According to that the leader of the community became the representative of the Prophet or the Khalifa. Khalifa was the head of the religion and also the head of the Arab nation. The first four Khalifas were relatives of the Prophet. They continued doing things as per the instruction given by him. Khalifas had two aims:

1. Control the Tribe and
2. Increase the income of the nation.

Question 4.
The followers and opponents of Ali formed two groups in Islam. Examine the validity of this statement.
Answer:
Ali fought two wars against those who represented the nobles of Mecca and this intensified the differences in Islam. Following this, Ali’s followers and opponent formed two groups in Islam – Shias and Sunnis.

Question 5.
The second round of the unification of the Arab Empire was made possible under the Umayyads. Discuss.
Answer:
Umayyad was a rich family in the Quraysh tribe. The founder of the Umayyad dynasty was Mu’awiyya, the 1^st Khalifa. The Umayyads Carried out many reforms. These helped the Umayyads to strengthen their position. Mu’waiyya, the first Khalifa, moved the capital of the Empire to Damascus.

He accepted the administrative institutions of the Byzantine Empire and the conventions of the royal court. He brought hereditary right to the throne and asked the leading Muslims to accept his son as the next Khalifa. The same paths were followed by his successors.

This helped the Umayyads to rule the Empire for 90 years. After Umayyads came the Abbasids and they were able to continue their rule for 2 centuries because of the reforms they carried out.

Question 6.
The Abbasid revolt brought significant changes in the dynasty and in the political structure and Islamic culture Elucidate.
Answer:
The Umayyads succeeded in decentralizing the Islamic political and administrative structure. But they had to pay a heavy price for that. In 750, a group called Dawa ousted the Umayyads from power and installed the Abbasids on the throne. The Abbasid family was a rich one in Mecca. They pictured the Umayyad rule as misrule and assured the people that they would bring back-the real Islam preached by the Prophet. The Abbasid revolt caused changes not only in the ruling dynasty but also in the political structure and Islamic culture.

Question 7.
From the 9^th century, the Abbasid rule began to weaken. Describe the reasons for the collapse of the Khalifa rule.
Answer:
From the 9^th century onwards the Abbasid dynasty began to weaken. The reason for this was the weakening of the control of Baghdad over the provinces and the increased internal conflicts. The Pro-Arab group and the pro-Iranian group in the army and bureaucracy quarrelled bitterly during this period.

In 810 there was an internal war between the followers of al-Amin and al-Mamun, the sons of Khalifa Harun al-Rashid. This further strengthened the division and there developed a strong powerful section of Turkey slave officials. There was also a fight for power between the Shia and Sunni sects.

Question 8.
Between 950 arid 1200, the Islamic society of the Middle Ages stood united because of certain common economic and cultural factors. Evaluate this statement.
Answer:
Between 950 and 1200, the Islamic society of the Middle Ages stood united not because of any political order or because of the one-language (Arabic) culture, but because of certain common economic and cultural factors. Even in the midst of political differences what maintained the unity was the separation between nation and society. The growth of Persian language and the intelligent discussions between different traditions nurtured this unity.

Scholars, artists, and merchants travelled freely in the various Islamic countries and propagated their ideas, Through the converts, some of these ideas reached even remote villages. There was a big growth in the Muslim population. As a religion and as cultural system, the identity of Islam attracted members of other religion, making conversions meaningful.

Question 9.
The coming of Sultanates was another turning point in Islamic history. Examine the validity of this statement.
Answer:
The rise of the Sultanates in the 10th and 11th centuries was another important turning point in Islamic history. “With this, a new racial group was added to the Arabs and Iranians. Turks were a nomadic tribal group from the Central Asian grassy plains of Turkistan. Gradually they accepted Islam. They were good riders and warriors. They had served Abbasid, Samanid and. Buyid dynasties as slaves and warriors. Many of them had reached high positions because of their valour and loyalty.

Question 10.
“The cause for the Crusades was religious.” Do you agree with this.statement? Give details.
Answer:
The main goaf of the Crusades was recapturing Jerusalem which is the holy land of the Christians. Christians believe that the crucifixion and resurrection of Jesus took place here. Thus Jerusalem is their most holy land. Jerusalem was once part of the Byzantine Empire. In 638, the Arabs captured it. But the Christians were given full protection by them.

There was no ban on visiting places including Jerusalem by Christian merchants, pilgrims, diplomats, and travellers. But in 1076, Seljuk Turks captured Jerusalem and from then they started persecuting the Christians there. This increased the enmity of Christians towards Muslims

Many Normans, Hungarian, and Slavs became Christians around this time. Muslims Were the only rivals of Christians, The Peace of God movement in Europe also made the circumstances rife for the Crusades This Movement recognized and encouraged the fight against the enemies of the Christian God and nonbelievers in Christianity.

Question 11.
Gradually the Crusaders lost their zeal. Based on this statement; analyse the results of the Crusades.
Answer:
The Crusaders gradually lost their zeal. They gave themselves to a life of luxury. Moreover, Christian rulers began to fight among themselves to get more territory. In the meantime, Salah ad-din (Saladin) built an Egyptian-Syrian Empire and gave a call for Jihad (holy war) against Christians. In 1187 he defeated the Crusaders and recaptured Jerusalem. Thus one century after the First Crusade, Jerusalem again came under the Turks.

Saladin treated the Christiansguite humanely. They allowed them to keep the area of the sepulcher of Jesus. But, at the same time, he converted many Christian Churches into mosques. Once again Jerusalem became a Muslim city The 3^rd Crusade took place in 1189. It was the loss of the city of Jerusalem that prompted the Pope to give a call for another battle.

In this war, the Crusaders did not get much benefit. They were able to capture some cities along the shores of Palestine. Christian pilgrims were given the right to visit Jerusalem at will. But in 1291 the Mamluks of Egypt, the rulers there, drove away all the Crusaders from Palestine. Europe slowly lost its interest in the Crusades. European nations began to give emphasis to their internal political and cultural development.

Question 12.
During the Islamic rule, urbanization developed fast Explain.
Answer:
During the Islamic rule, many cities grew and many new cities were founded. The new cities were built to give residences to the Arab soldiers who were the backbone of the Provincial administration. These military cities were known as Misr. Kufa and Basra in Iraq and Fustar and Cairo in Egypt were the most famous of them. During the Abbasid Khalifas, the population of Baghdad reached 1 million and it became an important city. Old cities like Damascus, Isfahan, and Samarkhand also developed. The cities were interconnected.

Main military cities:
Kufa, Basra, Fustar, Cairo.
Baghdad (capital city)
Damascus, Isfahan, Samarkhand (old cities)

In the heart of the city, there used to be two blocks of buildings. They were the centres for cultural and economic activities. One of them would be a mosque. It was big enough to be noticed from far. Another was a central market. In one row there would be shops, the residences of the merchants and a place, for changing money.

Question 13.
The rise of Sufism was a turning point in Islam. Discuss the ideas of Sufism.
Answer:
The rise of Sufism was an important event in the history of Islam in the Middle Ages. It is a reformist movement that was influenced by the Holy Quran and the life of the Prophet. The Sufis tried to understand God through asceticism and mysticism. They denied the love of luxury shown by the society. They rejected such a world placing their faith in God. The Sufis were mystics and believed in Pantheism. They gave importance to love and prayer.

Pantheism is the belief in one God and his creations. It means man’s soul should ultimately reach the Creator. Deep love for God is the main means of becoming one with God it was a lady ascetic called Rabia in Basra who propagated this idea. She lived in the 9^th century. She propagated the love of God through her poems.

It was an Iranian Sufi Bayasid Bisthami that taught the importance of man’s soul getting united with God. To get bliss and to raise emotions of love and devotion the Sufis used musical rhythms like Qawwali.

You can Download Displacement of Indigenes Questions and Answers, Notes, Plus One History Chapter Wise Questions and Answers Kerala Chapter 10 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One History Chapter Wise Questions and Answers Chapter 10 Displacement of Indigenes

Question 1.
In the American and Australian textbooks, there is no reference to the indigenous people there. What are the sources that throw light into the history of the indigenes?
Answer:
Until the middle of the 20^th century, the history textbooks of America and Australia explained how the Europeans discovered the Americas and Australia. But there were no references to the indigenous people there. It was in the 1940s, studies about the indigenes were started. The anthropologist of America started these studies. From the 1960s many people encouraged the indigenes to write their history or talk about it.

Today we can find many history books and novels written by the indigenes. In the museums of these countries, we can also see galleries exhibiting indigenous art. There are also special museums there, which depict the lifestyles of the indigenes. For example, the new National Museum of American Indians in the USA.

Question 2.
Europeans looked at the indigenes of America as uncivilized people. Do you agree with this view? Justify.
Answer:
Europeans looked at the indigenes of America as, uncivilized people. But the French philosopher Rousseau pointed out that such people should be respected because they had not polluted their culture. Many people think that the term “noble savage” would be appropriate to them. But the world-famous poet William Wordsworth came out with another view. He said that those who live in close proximity with nature will have less imaginative and emotional strength, in short, the indigenes were seen either as uncivilized or as noble savages or as people with less emotional and imaginative power.

The indigenes thought the things they exchanged with the Europeans as mere gifts. But for greedy Europeans, the things they got-like fish and hides- were goods to be sold in the Western markets. The price of the things the Europeans sold to the indigenes depended on the supply.

The indigenes did not have any idea about the markets in far-away Europe. Sometimes European gave a lot of things but sometimes only very little in exchange for the items they got from the indigenes. They used to wonder why this was so as they had no idea about the market prices. The greed of Europeans often made the indigenes sad. In their greed to get more and more hides, they killed a lot of otters. The indigenes were afraid that the animals would take revenge on them.

Question 3.
The indigenes and Europeans had different concepts about forests. Explain.
Answer:
The indigenes and Europeans had different concepts about forests. In the forests, the indigenes imagined many invisible things. But the Europeans simply wanted to clear the forests and convert them into cornfields.

Jefferson wanted a country with Europeans and small fields. The indigenes cultivated the land for their own use. They did not do it for selling or profit. Therefore acquiring land in their view was a serious mistake. This is what made Jefferson think that they were uncivilized.

Question 4.
Slavery was the main reason for the civil war in America. Evaluate this statement.
Answer:
The economy of the Northern States in the USA was not dependent on plantations. Their economy as industry-based. Therefore they did not have to rely on slavery. They said that slavery is anti-human and demanded its abolition. During the 1861-65 period, there was a civil war between the Southern States which wanted to retain slavery and the Northern States which wanted to abolish slavery. The Northern States had the victory. Slavery was abolished. But only in the 20^th century did the African Americans get their civil rights and the discrimination between the Blacks and Whites end.

Question 5.
The indigenes were slowly displaced from their land. How did the settlers acquire the land? What was the reaction of the indigenes?
Answer:
As each new European settlement developed in America, the indigenes were forced to withdraw from their land. They withdrew after signing agreements showing that they had sold their lands. They were given only petty sums for their land. The Europeans often offered bigger amounts to the indigenes but actually gave them only smaller sums when the signing was done and thus they cheated the indigenes. Even the people in authority did not feel anything wrong in getting the land from the indigenes by questionable methods.

The indigenes did not give up their land without a fight. Between 1865 and 1890, the US army had to suppress a series of riots. Around this time the Metis in Canada made an armed conflict. Later they gave up their armed struggle.

Question 6.
In the 1840s, in California gold deposits were discovered. What were its repercussions?
Answer:
There was always the hope there were gold deposits in North America. In the 1840s, in California, some gold deposits were discovered. This led to the Gold Rush. In the hope of reaping fortunes, many Europeans went to America. This caused railways to be built across the American mainland. Using thousands of Chinese labourers, America completed the work of the railways in 1870. In 1885, the railway network in Canada was also completed.

Question 7.
The main reason for the industrial revolution in the Northern States of America was the development of the railways. Explain.
Answer:
The main reason for the industrial revolution in the Northern States of America was the development of the railways. The railways helped in linking different places and in the quick transport of men and material. Another reason for the industrial revolution there was the manufactured machines. With this large scale, farming was made easy.

With the development in industry, industrial cities began to grow in the USA and Canada. The number of factories increased many-fold. In the 1860s, the economy of the US was undeveloped. But by 1890, it became a powerful industrial nation.

There was also large scale agriculture. Vast areas were cleared for cultivation. By 1880, the bison (wild buffaloes) faced extinction. With this their hunting by the indigenes came to an end. By 1892, the European settlements were almost complete throughout the USA. The region between the Pacific and the Atlantic was divided into States. In a short time, the USA established its colonies in Hawaii and the Philippines. Thus the US became an imperial power.

Question 8.
The American people gave democratic rights much value. Justify.
Answer:
The American people gave democratic rights (the right to vote, etc.) much value. The War of independence which they fought was, in one sense, was a fight for democratic rights. They also gave a lot of value to property rights. But their right to vote and right to property was applicable only to the Whites. The indigenes were denied those rights.

In 2000, Daniel Paul, a Canadian, pointed out this paradox. Thomas Paine, who was the spokesperson of democracy during the American War of Independence and the French Revolution, has underscored the contributions of the Red Indians of America to the development of the USA.

Question 9.
Critically examine the relations between the indigenes in Australia and the European settlers.
Answer:
There are a lot of similarities between America and Australia in this respect. When Captain Cook and his team reached Australia they had some fights with the local people. In an encounter in Hawaii, an indigene killed Captain Cook. Some such isolated incidents were used as the pretexts by Europeans to unleash violence against the indigenes in the 19^th and 20^th centuries, 90% of the local people died of various diseases that the Europeans had brought with them. Moreover, in their fight with the colonialists, the indigenes lost their land and resource.

The British made Australia a place to which they could exile their criminals. Earlier they sent their criminals to their American colonies. When America got the independence they chose Australia for that. Among the early settlers in Australia, a good number were criminals from the UK. These exiled criminals were let free in Australia on the condition that they would not return to England even when they finished their jail terms. These criminals had no regret to drive away the indigenes from their land and forcefully occupy it.

Question 10.
Make a timeline showing the development of Australia.
Answer:
1850 : Australian colonies were given self-rule.
1851 : Chinese workers migrate – It was stopped by law in 1855.
1851-61 : Flow of people into the gold mines.
1901 : The Federation of Australia is formed with 6 States.
1911 : Canberra is established as the capital.
1948-75 : Some 2 million Europeans migrate to Australia.

You can Download The Confrontation of Cultures Questions and Answers, Notes, Plus One History Chapter Wise Questions and Answers Kerala Chapter 8 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One History Chapter Wise Questions and Answers Chapter 8 The Confrontation of Cultures

Question 1.
We have got much information about the confrontation between Europeans and the indigenes of the Americas. Explain.
Answer:
The Europeans who went to the Americas have given details of their journeys in their diaries and logbooks (the books in which details of the voyage are recorded). The records and writing of officials arid the Jesuit missionaries are also very important. Europeans have written a lot about the discovery of the Americas, North, and South. They have written more about their migration but their descriptions about the indigenes are very few.

In both the Americas (North and South) and the nearby islands, people have been living for thousands of years. There were migrations from Asia and from the islands of the South Ocean. South America was a region full of forests and hills, The longest river in the world Amazon flows mostly through dense forests. In Mexico, Central America, there were many dense human habitations. In the forest areas, there were also scattered villages.

Question 2.
The people who lived in the Caribbean Islands were of a community called Arawak. Write about the life of Arawaks.
Answer:
In the Caribbean Sea, there are hundreds of small islands. They are known as Bahamas, Greater Antilles and the Lesser Antilles. On these islands, the community called Arawaks or Arawakian Lucayans lived. The violent tribe called Caribs drove away the Arawaks from the Lesser Antilles. Arawaks were peace-loving people. They preferred co-operation to competition. They were experts in making boats. They traveled in the open sea in small wooden boats. They lived by hunting, fishing, and farming. They cultivated com, sweet potatoes, some other root crops, and tapioca.

The Arawaks practised joint farming. Thus they tried to feed everyone in the community. This was their highest cultural value. They organized themselves under the elders in the community. Polygamy was common among them. They were animists. Animism (from Latin anima, “breath, spirit, life”) is the view that entities in nature such as animals, plants, and often even inanimate objects possess a spiritual essence. The ‘shaman’ (the priest) had a big role in their lives. The shamans worked as healers and as intermediaries between this world and the supernatural world.

Arawaks used golden ornaments. But they were not aware of the value of gold. They would gladly exchange their golden ornaments with the cheap crystal chains of the Europeans. The shine and beauty of the crystal chain was more important to them. They were good weavers. The art of weaving had developed nicely among them. Their swing beds made of coir was a big attraction to the Europeans.

Question 3.
The people of Brazil did not have to depend on agriculture. Why?
Answer:
The people who lived on the eastern shores of South America and in the villages of the forests were called Tupinamba. This region is present Brazil. The name Brazil came from a tree called Brazilwood. The people of Brazil had no iron. Therefore they could not clear forests and do any agriculture. Since they had plenty of fruits, vegetables, and fish, they did not have to depend on agriculture.

Question 4.
Prepare a seminar paper on the political systems of Central and South America.
Answer:
In Central arid South America, there were some famous civilizations. The most noteworthy of them were the Aztec and Mayan culture of Central America and the Inca culture of South America. They were highly organized nations. These urban civilizations were made possible because of the surplus production of corn. The huge architectural marvels built by the Aztec, Mayan and Inca cultures still make us stare at them in awe and wonder.

The Aztecs: Aztec culture is centred around Mexico. In the 12^th century, the Aztecs from the north migrated to the main valley of Mexico. By defeating the various tribes there, they built a large empire. From the defeated people they also collected tributes.

The Aztec society was hierarchical. There were different classes in society. The most important of them were the nobles or lords. Priests and other high officials belonged to this class.

Hereditary nobles were a small minority. They occupied the highest posts in the government, army . and priesthood. The nobles chose an able man from among themselves as their leader and he continued to be the king till he died. The king was supposed to be representative of the sun on earth.

Warriors and priests were the most respected people in society. Merchants were given a lot of concessions. Skilled and competent workers, doctors and intelligent teachers were also respected. Since the land was limited, the Aztecs tried to make it as fertile as they could. They also built artificial islands (Chinampas) by weaving mats from bamboo and covering them with earth for cultivating plants. In between these fertile islands they built canals.

In 1325, the Aztecs built their capital city Tenochtitlan in the middle of a lake. There were palaces and pyramids there. Since the Aztecs were often engaged in battle, their temples were dedicated to war gods and sun-god.

The Mayans: The Mayan culture of Mexico developed between the 11^th and 14^th centuries. In the 16^th century, the Mayans were politically less powerful than the Aztecs. The centre point of Mayan culture was com cultivation. When com was planted, when ft was, growing, and when harvested there were different religious rituals connected with it. The Mayans had surplus crops. The extra income they had helped the administrators, priests, and chiefs to invest and develop architecture, astronomy, and mathematics.

The Mayans have given great Contributions in writing, architecture, mathematics, and astronomy. They had formed a picture script. Scholars could read their picture-script writing only partially.

The Incas of Peru: Among the local civilizations of South America, the biggest and the best is the Inca culture of- Peru. The Incas belong to a class called Quechua. Their language is also Quechua. Inca means the emperor who roles of-the land. The capital of Inca was a city named Cuzco. In the 12^th century, the first emperor Manco Capac founded that city. The expansion of the empire began during the period of the 9^th Inca. The empire spread from Ecuador to Chile, some 3000 miles.

The Inca Empire was highly centralized. The source of authority was the emperor.

Newly defeated tribes were successfully integrated with the empire. Each subject was to speak the language of the royal court, Quechua. The tribal administration was done by a Council of Elders. The Tribes owed their loyalty to the rulers.

Regional rulers gave the emperor military help. For this cooperation, they were adequately rewarded.

The basis of Inca culture was agriculture. Since the soil was less fertile, they made layers on the sides of hills and developed irrigation facilities. The Incas cultivated on a large scale. In 1500 they had more cultivation than what they have today. Their main crops were corn and potatoes.

Another important occupation of the Incas was animal husbandry. They grew a special kind of goats called lama goats which they used for meat as well as for work.

Question 5.
Aztecs had given great importance to education. Explain.
Answer:
Aztecs had given great importance to education. They made sure that all the children attended schools. The schools where the children of the nobles were studying were called Calmecac. Here they got training to be army leaders and religious leaders. Other students studied at the schools called Telpochcalli. Here they studied things like history, myths, traditional and ritualistic songs.

Boys were given military and agricultural training. They were also trained in other professions. Girls were given training to do household jobs.

Question 6.
Incas were proud builders and architects. Justify.
Answer:
Like Aztecs, the Incas were also proud builders and architects. Through the hilly region between Ecuador and Chile, they constructed many roads. They also built many forts, temples, palaces, and towers. They built their forts with stone slabs. Since the stone slabs were cut fine, they did not need any lime for fixing.

To cut the stones from the stone quarries and to transport them to the construction sites they made use of the labour of people, the masons got the stories .like flakes or layers. Some of the slabs weighed many tons. But they did not have any wheeled vehicles to carry them. Physical effort was needed to make the slabs reach the work sites. Work was organized and strictly supervised.

Question 7.
It Was the progress in science and technology and the invention of machines that helped geographical discoveries. Examine the statement.
Answer:
In the quest for geographical discoveries, progress in science and technology and the invention of machines helped considerably. The invention of the magnetic compass made voyages in the sea easy. Although people had some idea about magnetic compasses right from 1380, it was in the 15^th century they were widely used. The magnetic compass helped navigators to find the exact direction to which they were going.

There was also great progress in shipbuilding. Big ships that could carry a lot of goods were made. They were also made in such a way that they were ready to face attacks from enemies. The availability of written material in natural science, geography and travel increased the desire for people to make travels in the sea.

Question 8.
The exploratory geographical voyages had economic, religious and political goals. Discuss.
Answer:
The exploratory geographical voyages definitely had economic, religious and political goals.

Economic goals:
The main Inspiration behind geographical discoveries was economic. The European, economy was facing a crisis. The Great Plague and wars reduced the population in Europe considerably. Trade was reduced. There wasn’t enough silver and gold for making coins. Distance trade also was in problems. In 1453, the Turk conquered Constantinople and this was a big shock. Although the Italians tried to trade with the Turks, they had to give higher taxes. With this, the land- route trade between Europeans and the Eastern countries became difficult. In short, the goals of the European were making huge profits through trade and collecting Valuable metals like silver and gold.

Religious:
The desire to propagate Christianity to the world outside Europe also prompted the Europeans to embark upon voyages of discovery. Europeans were ready to undertake any adventure to spread Christianity to other lands. Along with the navigators, there were also missionaries and priests in their adventurous journeys.

Political:
The Crusades had caused an increase in trade between Europe and Asia. The products of Asia, especially spices, were in great demand in Europe. The rulers of Europe realized that through trade they could get political power. They thought that the newly discovered lands could be made their colonies and there they could establish their political power. They also wanted regions which were strategic so that it would help them in wars. Thus the European rulers encouraged voyages of discovery.

Question 9.
It was Columbus, the Italian navigator, who led the geographical discoveries. Based on this statement describe voyages of Columbus and his discoveries.
Answer:
Columbus (1451-1506), the Italian navigator, was the person who led many of the geographical discoveries. He was a navigator who dedicated his life to adventure and fame. He had believed in prophecies. He firmly believed that his destiny was finding out a sea route to the East by sailing westward. The geographical- astronomical book titled “Imago Mundi” written by Cardinal Pierre d’Ailly in 1410 inspired Columbus.

He presented his schemes of voyage to the Portuguese King but he refused to approve them. But the Queen of Spain, Isabella, was ready to help him. Thus on 3 August 1492, with Spanish help, Columbus started his voyage from the port of Palos. Columbus and co-navigators began their voyage in three small ships named Santa Maria, Pinta, and Nina. With the assistance of 40 expert navigators, Columbus himself navigated Santa Maria. The voyage crossing the Atlantic was a long one.

Question 10.
The Spanish established a colonial empire in America. Based on this statement, prepare a seminar paper.
Answer:
Following Columbus there was a flow of Spanish navigators and migrants into America. They tried to colonize the Central and Southern regions of America. They used their military power, gunpowder, and horses to do it. From the local people, they collected tributes. They made the indigenes work in the gold and silver mines. After the first discovery, the Spanish established a residential centre there. They made the local people work there. With the help of the local chiefs, they made explorations into the interiors of the country and tried to find new gold mines.

Cortes and the Aztecs: Cortes and his warriors were known as Conquistadores. They attacked Mexico. In 1519, Cortes went from Cuba to Mexico. There he established a friendship with a group called Totonacs who wanted to secede from the Aztec rule. The Aztec ruler Montezuma sent an officer to meet Cortes, the officer was terrified at the zeal for war shown by the Spaniards, their gunpowder and horses. Montezuma was made to believe that Cortes was a reincarnation of some deity and he has come to take revenge on him.

Even then the Aztecs resisted the Spaniards. In a battle called The Night of Tears, some 600 conquistadores and Tiaxcalans, their allies, were killed. Cortes was forced to retreat to Tlaxcala. He then made fresh plans against the new king of the Aztecs Cuauhtenoc. By this time many Aztecs began to die from the small pox the Europeans had brought with them. With just 150 soldiers and 30 horses, Cortes moved into Tenochtitlan. The Aztecs felt their end was near and the Aztec king surrendered. Later he was executed.

Cortes completed the conquest of Mexico and then he became the Captain-General of Spain in Mexico. From Mexico, the Spaniards extended their control to Guatemala, Nicaragua, and Honduras.

Pizarro and the Incas: Pizarro was quite different from Cortes. He was a poor man with no education. He joined the army and in 1502 he reached the Caribbean. He had heard that the Inca Empire was full of gold and silver. He tried many times to reach there from the Pacific. Once when he was returning home, he happened to meet the Spanish king. He showed the king some Inca golden plates with beautiful carvings on them. The greed of the king was roused. He promised Pizarro that if he conquered the Inca Empire, he would make him the governor of the place. Pizarro tried to follow the path of Cortes. But when he found that the situation was different in the Inca Empire, he was disappointed.

in 1532, after an internal conflict, Atahualpa occupied the throne of the Inca Empire. At this time Pizarro appeared and trapped the king. The king promised to give Pizarro enough gold to fill a room if he was left free. This was the highest ransom ever recorded in history. But Pizarro did not succumb to this offer. He killed the king and his followers looted the entire Inca Empire. They also occupied it.

Question 11.
The Portuguese occupied Brazil by accident. Describe the colonization of Brazil and the role of Cabral in it.
Answer:
The Portuguese occupied Brazil by mere accident. In 1500 a fleet of ships under Pedro Alvarez Cabral traveled to India. His ships were caught in a storm and they reached present-day Brazil. Thus Cabral got the name for discovering Brazil. Since Brazil was in the Eastern part of South America which the Pope had allowed the Portuguese to capture, Cabral claimed that Brazil was theirs.

Question 12.
Geographical discoveries had far-reaching impacts in Europe, the Americas, and Africa. Prepare a seminar paper on this topic.
Answer:
Geographical discoveries definitely had far-reaching impacts on Europe, the Americas, and Africa. From the 15^th century, some sea routes from Ocean to Ocean were known. But most of these routes were quite unknown to the Europeans. Not even a single ship had ever reached the Caribbean or the Americas. In the Southern Atlantic, nobody had done any exploration. No ship entered there or traveled toward the Pacific or Indian Ocean. But by the end of the 15^th century and the beginning of the 16th, all this became old stories. Adventurous navigators reached all these places.

The discovery of the Americas had big repercussions on Europe, The flow of silver and gold from the newly discovered regions helped international trade and industrialization.

Between 1500 and 1600, each year hundreds of ships loaded with silver from South American mines readied Spain. But neither Spain nor Portugal made use of it for their internal development or welfare of the common people. They used it to develop trade or to build their naval power.

But England, France, Belgium, and Holland benefitted from the discoveries. Their merchants formed joint-stock companies and started trade trips. They established colonies in the newly discovered regions and brought new-world products like tobacco, potato, sugar, coco, pepper, and rubber into Europe. Soon the American produce became familiar to the Europeans. The Europeans then took them to places like India.

Geographical discoveries were ruinous to the indigenous people of the Americas. Many of the local people there were killed. Their culture and lifestyles were destroyed. They had to work like slaves in mines, estates, and mills.

Before the coming of the Europeans, there were some 70 million indigenes in the Americas. After a century and a half, their number was reduced to 3.5 million. It was wars and diseases that destroyed them.

In the duel between ancient American and European cultures, the Aztec-Inca cultures were completely ruined. Europeans used a war strategy that terrified the local people psychologically and physically. This also showed the differences in their values. The local people did not realize the depth of the greed of the Spaniards for gold and silver.

Question 13.
The worst result of geographical discoveries was slavery. Do you agree with this view? Justify.
Answer:
I agree with the view that slavery was the worst and brutal result of geographical discoveries. Slavery was not a new idea. But in South America, this was a new thing. The special feature of slavery in South America was that the increasing capitalist production system followed this brutal idea. The circumstances in which the slaves worked were terrible. But the Spaniards thought that such type of exploitation was necessary for their economic gains.

You can Download Changing Traditions Questions and Answers, Notes, Plus One History Chapter Wise Questions and Answers Kerala Chapter 6 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One History Chapter Wise Questions and Answers Chapter 6 Changing Traditions

Question 1.
It was Marc Bloch who wrote the best historical book on Feudalism. Based on this statement, write about the contributions of Marc Bloch.
Answer:
Marc Bloch (1886-1944) was one of the people who believed that there are more important things in history than political events, international relations and the lives of great persons. Marc Bloch stressed the importance of geography in the making of human history. He also pointed out the importance of understanding the attitude and behaviour of social groups. His most important book is “Feudal Society”. It especially studies French society between 900 and 1300 AD. This deals with extensively with the social hierarchies, social relations, ownership and management of land and the popular culture of those days.

Question 2.
The region called Gaul later became France. On the basis of this statement, write about the early history of France.
Answer:
The early history of France-:
481 : Clovis-becomes the king of Franks.
486 : Clovis and the Franks attack north Gaul.
496 : Clovis and the Franks become Christians.
714 : Charles Martel becomes the’ Mayor of the Palace.
751 : Martel’s son Pepin overthrows the Frankish ruler and becomes the king, founding a new dynasty. Through conquests, he doubles the territory of his country.
768 : After Pepin, his son Charlemagne becomes the king.
800 : Pope Leo ill gives Charlemagne the title “Holy Roman Emperor”.
840 : From 840, there were attacks by the Vikings of Norway.

Question 3.
Priests were the first order. What were the other orders?
Answer:
The three orders were Priestly Class, Nobles, and Farmers.

Question 4.
Not everyone could become a priest. Examine the validity of this statement.
Answer:
Not everyone could become a priest. Serfs, physically or mentally handicapped people and women were denied priesthood. Men who became priests could not get married. Bishops were lords in the sphere of religion. They were, like the nobles, owners of huge, estates. They stayed in palatial bungalows.

Question 5.
The Catholic Church and Feudalism shared many things. Do you agree with this viewpoint? Critically examine the.relations between the Church and Feudalism.
Answer:
The Church was the richest institution in Europe. From the farmers, the Church collected tithes. One-tenth of the yearly income was taken as tithes. The Church also received a lot of contributions from the rich lords or nobles. Many of the feudal rituals and conventions were also practiced in the Church. For example, the practice of praying to stand on knees, with bent heads and folded hands was borrowed from feudalism. In the feudal system, a knight declared his loyalty to his Lord in this manner. Similarly, the word ‘Lord’ denoting God is also borrowed from feudalism. Thus we can see there was much in common between the Church and Feudalism.

Question 6.
Abbeys were different from churches. Explain how abbeys were different from churches in their structures.
Answer:
Devout Christians established abbeys that were different from churches. The monks who lived in the abbeys were not like the priests who lived among the people of cities and villages. The monies lived secluded lives. They stayed in small communities of religious people. The places where they stayed were called abbeys or monasteries. Monasteries were usually away from crowded centres. The persons who stayed in the abbeys were monks and their head was called Abbot.

There were many monasteries. But two of them became very famous. One was in Subiaco, Italy which was founded in 529 by St. Benedict. The other is the Cluny Abbey in Burgundy which was founded in 910.

The monks pledge to stay in the abbeys for the rest of their lives and spend their time in prayers, studies, farming, and other physical work. Women also could take religious vows and become Nuns. Nuns stayed in Convents. The nuns also could not marry.

Question 7.
The Abbeys have given great contributions to social and cultural spheres. Explain.
Answer:
The early abbeys were small communities with some 10 or 20 monks in each. But later they grew in size and some abbeys had hundreds of members. They . had big buildings and large estates. They also built schools, colleges, and hospitals around the abbeys. These abbeys have given great contributions in the spheres of Art and Knowledge. Abbot Hildegard was a gifted musician. The monks played a big role in the common collective prayers of the Congregations. They had kept copies of manuscripts of great books. This helped the growth of knowledge.

Question 8.
Writers have pointed out some drawbacks of the abbeys. Explain with examples.
Answer:
By the 14^th century, the abbeys started showing signs of unhealthy things. Some of them lost their values and forgot their goals. Then the writers started severely criticising and even mocking the monasteries. Langland’s ‘Pierce Plowman’ and Chaucer’s “Canterbury Tales” mock at the luxurious lives of some monks.

Question 9.
The Catholic Society welcomed the Holy Days. Why? Describe the reasons based on the relations between the Church and society.
Answer:
Christians started celebrating the 25th of December as the birthday of Christ (Christmas) and his resurrection after death as Easter. For the hardworking peasants, these were days free from work and they heartily welcomed them. Although these days were dedicated to prayers, people used most of the time for entertainment and feasting.

Question 10.
The economic base of feudalism is manorial estates. What are manorial estates? Explain their special features.
Answer:
A noble (lord) has his own manorial house. He was the one who controlled the villages around him. Some nobles controlled hundreds of villages. Peasants lived in villages. In a small manorial estate, there would be 12 families. But in big manorial estates, there could be 50 or 60 families. The manorial estate had all the things necessary for daily life. From the farms they got grain. Carpenters and ironsmiths repaired and maintained the farming implements and also arms. There were masons to repair the mansion of the lord. Women wove clothes. Children worked in the vineries of the lord. There the lords used to go for hunting. In the grasslands of the estate the .herds and flocks grazed. There was a church in the estate and also a fort for defence.

Question 11.
The social importance of the nobles came from their control over the land. Based on this statement explain the meaning of vassalage.
Answer:
It was their control over the land that placed the lords in the central point. This control resulted from vassalage. In the feudal system, the entire land belonged to the king”. The king distributed the land among the nobles. Thus the nobles became huge landlords. They became the vassals of the king. The nobles gave their land; to the peasants for cultivation. Thus the nobles became lords or masters and the peasants became dependents or serfs.

Question 12.
A manor was not fully self-sufficient. Do you agree with this view? Justify your answer.
Answer:
It is true that a manor was not fully self-sufficient, It needed salt, grinding stone and metallic pots from outside. Similarly, the nobles got their luxury items like musical instruments, home appliances and ornaments from outside.

Question 13
Knights were warriors and related to the nobles. Find out how knighthood originated and the knights kept up their relations with the nobles.
Answer:
From the 9^th century onwards, there used to be regional wars in Europe. The peasant soldiers were not competent enough to win these battles. There was a need for a good cavalry. This need resulted in the formation of a new group of people known as knights. The knights were soldiers or warriors. They were related to the nobles. The noble gave the knight an area of land called fief and the knight pledged to protect it. Fief Gould be transferred hereditarily. A fief could be anything between 1000 to 2000 acres. It had a house in which the knight and family could live, a church, a watermill, and a vinery. The land was used by the knight and he promised to fight for the noble. To maintain their physical fitness the knights engaged in different kinds of training and sports. A knight could serve more than one noble. But his real loyalty was to his particular noble who had given him his fief.

Question 14.
Farmers were of two kinds. Explain.
Answer:
Farmers were of two kinds. One was independent farmers and the other was serfs, who were not independent farmers.

Question 15.
Feudalism developed in England from the 11^th century. Based on this statement describe how feudalism grew in England.
Answer:
Feudalism developed in England from the 11^th century. The Angles and Saxons from Central Europe had started living in England in the 6^th century. The name England is a distortion of ‘Arigleland’.

In the 11^th century William, the Duke of Normandy crossed the English Channel with an army and defeated the Saxon king. From then onwards, England and France became bitter enemies. They often fought with each other for lands and trade. William, I made a map of the country and distributed it among the 180 Norman Nobles who had migrated to England with him. These Nobles became the king’s most important vassals. They had to give the king military service. They also had the obligation to give a fixed number of knights to the king. Soon the nobles started giving part of their land to the knights.

In return, the knights had to give similar services to, The lords as the lords were giving to the king. But the nobles could not use the knights for their private wars, as it was prohibited in England. Anglo-Saxon farmers became the serfs of the landowners. This is how feudalism grew in England.

Question 16.
Prepare a seminar paper showing the factors that affected the social and economic relations during the feudal age.
Answer:
During the feudal era, there were many processes that completely changed the prevailing social and economic relations. The factors that caused these changes were mainly the Environment, use of land and new agricultural technology.

From the 5^th century to the 10^th century, most parts of Europe were covered by dense forests. Naturally, these were very little agricultural land. Dissatisfied farmers ran away into the forests to escape from persecutions by their angry lords or knights. At this time Europe had a very cold climate. Extended winter periods adversely affected agriculture and crops. Production was drastically reduced.

But from the 11^th century, there were changes in the environment. The climate became warmer and the average warmth increased. This change in the climate was suitable for agriculture. Since there wasn’t much snow and ice, the farmers could plough and cultivate the land for longer periods.

Environmental historians show that in many parts of Europe forests receded. This helped in increasing agriculture. In the beginning, the agricultural technology was very primitive. They had only wooden ploughshares, pulled by bullocks. By using this plough, only the upper parts of the land could be ploughed. So they could not make use of the fertility of the deeper soil. Naturally, agriculture needed a lot ‘ of efforts. The lands were deepened by using hands. This was done once in four years and it needed a lot of physical efforts.

The biggest change in the economic sphere was the use of money. From the 11th century, money was used for transactions. Because of this personal relationship that was the basis of feudalism began to weaken. Nobles started demanding their taxes and shares in the form of money and not services.

Question 17
Describe the concept called the ‘The 4^th Order’ and prepare a note about the new cities and the city people.
Answer:
By the 11th century, the cities began to grow again. The reason for this was the surplus agricultural production. As the farmers began to produce enough grain to sustain the people in the cities, the cities began to grow. The farmers who had surpluses needed centres where they could sell their surplus, and where they could buy their work tools and clothes. This caused the growth of small markets and centres for selling things. Slowly they began to show the features of cities. There was a. square area, a church inside, roads along which there were shops and homes of merchants and an office where the administrators of the area met. Some cities grew around forts, estates of bishops . and big churches.

The majority of the city people were independent farmers or escaped serfs. These serfs did most of the unskilled jobs. There were different kinds of shops, big and small, and traders in the city. Gradually the cities needed specialized people like bankers and solicitors. In big cities, the population could be as many as 30,000. These cities were called the 4^th order.

Question 18.
From the 12^th century onwards, Cathedrals were built in France. Explain.
Answer:
Big churches are called Cathedrals. Although the owners of these cathedrals were monasteries, many people took part in their construction. They helped the construction by giving money, labour or material. The Cathedrals were built with stones. It took years to complete the work. As the construction was in progress, the areas around it were occupied by more and more people who came to live there. Some of , the cathedrals became pilgrimage centres. Around them, townships came up.

Question 19.
In the 14^th century, Europe faced a big crisis. Based on this statement discuss the reasons for this crisis.
Answer:
At the beginning of the 14^th century, the economic growth of Europe was reduced drastically. There were three reasons for that.
a) Change in the climate.
b) Lack of trade.
c) Plague.
By the end of the 13^th century, there were significant changes in the climate of Northern Europe. The warm climate disappeared and instead of cold climate came. This climatic change adversely affected cultivation. It was difficult to cultivate in higher areas. Storms and disturbances in the sea affected shipping and trade. This reduced the income to the people and the government. The government was not getting enough taxes both from the peasants as well as traders.

Then there was the plague or Black Death. It killed a lot of people and brought the economy to a standstill. It took a long time for Europe to overcome this sorry state of affairs.

Question 20.
Find out the reasons for the rise of despotic rulers and contrast them with traditional monarchies.
Answer:
The new despotic oilers were different from traditional kings. In the feudal system, the king was on top. But now things changed. King became the centre of society. The king needed the support of those who had power and authority. The king got this support through patronage. Many gave the king money to get this patronage. Thus money became very important. Merchants who were not nobles and bankers etc. could get into the royal court by giving money to the king. The king used this money to pay his soldiers. Thus the king allowed anti-feudal elements to get into the administrative system.