7.

Trade and Globalization

World Market- We will call that kind of market the world market where
goods from all the countries of the world are available for common people
to buy. Like- India's financial capital Mumbai.

Commercial Revolution- Unprecedented development and expansion in

the field of trade which reached the entire world through both water and
land routes. Its center was Europe (England).

Industrial Revolution- Production of goods on a large scale in large

factories by machines powered by steam power. Its center was England
and it started after 1750 .

Imperialism- Conquering the regions of Asia and Africa by military power

by European countries and keeping them under their direct control.

Economic recession – A situation in the economy when the development

of its three bases – agriculture, industry and trade – is hindered. Millions of
people become unemployed, banks and companies go bankrupt and both
goods and currency lose value.

Stock Market - The place where the market value of commercial and
industrial companies is determined.

Speculation- Investing capital in companies and buying shares so that

their value increases and selling them again.

Protectionism- Imposition of high import duty on foreign goods to protect

one's own goods from damage caused by influx of foreign goods.
New Deal- A new policy related to a big plan of public welfare in which
apart from the economic sector, political and administrative policies were
also regularized.

Dictatorship- A political administrative system in which all powers are

concentrated in the hands of one person. That person takes advantage of
the circumstances and creates the image of a hero among the public.

Globalization – an international nature of all walks of life, which has linked

all parts of the world – the whole world has turned into one big village.

Capitalism – A system based on capital which rests on the market and

profit.

Cold War – Strategic tension between Soviet Russia and the United
States, the leaders of countries with state controlled and market controlled
economies.

Multinational Company- Companies that do business and trade in many

countries at the same time are called multinational companies. Such
companies flourished from the 1920s onwards, which increased
significantly after World War II.

Colonialism - Colonialism is a political economic system directly

abandoned by European countries in Asia and underdeveloped Africa and
South America. Its only purpose was to exploit these countries
economically.

Indentured labor – Workers from colonial countries who were taken to

their territories under a fixed agreement for a fixed period of time, were
mainly employed in the production of cash crops such as sugarcane.
Sugarcane from the Bhojpuri speaking areas of India (East Uttar Pradesh,
West Bihar), Punjab, Haryana was taken to countries like Jamaica, Fiji,
Trinidad and Tovaco, Mauritius etc. for cultivation.
The form and clear evidence of the ancient world market is found in the
discussion of a big trading center named Alexandria.

This city was the center of traders from the three continents of Africa,
Europe and Asia.

Nature and extent of world market

● With the spread of the Industrial Revolution, the nature of the

market became global.
● Farmers used to get good returns for their produce, as the
market is more competitive.
● New employment opportunities are created.
● Modern thought and consciousness also spread.

benefits of world market

● modernization
● In the colonial countries, structural sectors like railways, roads,
ports, mining, horticulture etc. developed.
● Created new technology.
● Railways, steam engines, steam ships, telegraph and large
ships remained important.
● development of urbanization

loss of world market

● rise of imperialism
● Decline of agriculture, small and cottage industries
● Famine and Starvation in Colonial Countries
● Imperialist competition among European countries

Today the interconnected relationship between livelihood and

globalization
● Since the end of the Cold War, military power has been
overtaken by economic power.
● After 1991 , the service sector has expanded at a very rapid
pace all over the world, opening up many new areas of
livelihood.
● Transportation facilities (bus, taxi, airplane), banks, and facilities
provided in the insurance sector, telecommunication, and
information technology (mobile, phone, computer, internet),
hotels and restaurants, shopping malls, call centers, etc. in big
cities are quite a lot. Has spread rapidly.
● The tourist spot is developing.
● Lakhs of people are getting employment.