REFLECTIVE READING

1.How does the cost differentials in trade affected trade flows of

goods and services in India?
First of all, the cost differential in trade means the specificity in price of

origin and quality of a product may vary from higher to lower and vice

versa. This benefits the access of production inputs from foreign. This

actually determines the economic gain in the nation.

The major exports from India consists petroleum products, gems and also

drug formulations. The exports also included spices, tea, coffee, tobacco in

agriculture, along with iron and steel. Services like tourism, banking,

consulting and transportation.

International trade allows India to spread its markets and access goods and

services. In the present condition, the cost differentials had a major impact

on trade in particular on goods and services. This made the market more

competitive and also brings a cheaper product home to the consumer.

The pandemic affected the trade flow which indirectly made noticeable

reforms in the differentials. This mainly had an impact on differentials

between high-income and low- and middle-low countries. Thus, the trade

and costs are interrelated to one another.

2.What is the role of technology in the development of trade in goods

and services?

Technology has a major influence on development of trades. It can supply

more raw materials to industries and promotes low prices and helps to get

high output. Technology is changing the trade flows rapidly and trades in

services are increasing faster than trades in goods.

Technology have helped us to spread the services all over the places

without more wastage of costs for spreading them to long distances.

Technology is changing the cross-border mobility of goods and services

and also the capital flows.

It plays a major role in impacting factors of production of goods and

services. Technology also increases the speed of trade in goods and

services as it provides knowledge and tools then helps in using of

economic resources to produce goods and services more innovative and

effective way.

In the present situation of Covid-19, the technology had made new

standards for the succeeding global market. Thus, most of trade of goods

and services were drastically shifted to online based mode and also the

increment in technology paves the path to the increment of trade flow.

3.What attracted long term investors such as pension funds and
insurance services into venturing to India as their investment
destination?
The objective, long term investors were mainly based on the point that

account which deals with the plans like stocks, bonds, real estate and cash

for a certain period.

Out of many factors, two play major role in the seeking of attention of long-

term investments, the rise of demand of asset owners and the increment of

ESG indicators. India has a more challenging environment to do business

when compared to other countries.

India has a great investment to any international businesses because of its

large customer markets and economy. India has fastest growing

economies in the world. India commands potential growth in productivity.

In this Covid-19 crisis, India prospects a bright owing to its long-term

growth. India’s present fundamentals makes it as a one of the most viable

investments destinations among emerging markets. This results in

increment of job opportunities and also develops the infrastructure. Thus,

the succeeding years leads to a well enhanced societies in India.

4. What will the fourth industrial revolution cover as mentioned in the

article? Explain.

The fourth industrial revolution creates a world in which the of manufacture

in virtual and physical way cooperate with each other in a flexible way in

the global level. The technology had benefitted the world in various ways.

No need to mention them, but the most noticeable thing is that the spawn

of global markets is majorly done by this.

The main objective of this revolution is to establish new reforms in industrial

sector. The point focuses on the utilization and management of resources

for the purpose of development. The developing countries were mostly

enlightened in the revolution.

Since, the task of utilizing and also management of the resource in

developing process will be a big hurdle for the developing countries. The

technology had made access for the developing countries to maintain the

both factors simultaneously.

In this condition, the world is shattered by the pandemic but somehow it got

up with the help of technology. Thus, keeping the covid in mind the
resources must be wisely utilized along with the development of the

countries in a smarter way is the ultimate purpose of the fourth industrial

revolution.

_____THE END____

POLISETTI LL VARAPRASAD LOHITH

SEC 9A/B PSYCHOLOGY