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Ans: Exports are goods which are sent out of the country for sale. Other
countries buy them either in their own currency, or more usually in US dollars.
Ans: Imports are goods which are brought into the country from overseas. They
have to be paid for, usually in US dollars. Nowadays, countries are also paying
in euros.
Q#3: Name any five countries which use Euro as their official currency.
Ans: Austria, Belgium, Germany, France, and Ireland are some of the countries
which use Euro as their official currency.
Ans: The most valuable exports are usually manufactured goods. The more
complicated goods are usually more expensive .
Q#6: How does the World Bank help the developing countries?
Ans: World Bank lends vast sums to help countries to modernize and build
roads, ports, schools, hospitals, and other projects.
Q#7: Which four countries are the largest producers of cotton in the
world?
Ans: USA, China, India, and Pakistan are the largest producers of cotton in the
world.
Q#8: How many tonnes of Basmati rice were exported from Pakistan in
2019?
Ans: The hardy wool from the tough sheep and goats of the hilly regions is
ideally suitable for making carpets.
Ans: Goods that we can see and handle, such as iron, rice, carpets, and
machinery are called visibles. Trade of these tangible goods is called visible
trade .
Exercise Questions
Balance of payments is the difference between the amount a country pays for
imports and the amount it receives for exports, during a particular period.
Trade deficit
If the imports are higher than the exports, the difference is called trade deficit.
For example, if Pakistan exports goods worth $ 200 million and imports goods
worth $ 500 million it will have a trade deficit of $ 300 million (500-200= 300).
Trade surplus
If the exports are higher than the imports, the difference is called trade
surplus. For example, if Britain exports goods worth $ 150 million and imports
good worth $ 100 million, it will have a trade surplus of $ 50 million (150 -
100= 50).
Q#2: Work out the difference in totals of Pakistan’s export and import
figures for 2006. Is the result a surplus or a deficit?
Ans: According to the Economic Survey of Pakistan, in the year 2006, Pakistan’s
exports were Rs 1,030millon while imports of Pakistan in the same period were
Rs 1,852million. So Pakistan had a trade deficit of Rs 822 million in that year. In
fact, Pakistan has been having a trade deficit in almost all years except for the
three years, i.e. 1947_48, 1950_51 and 1972_73. Pakistan has been
experiencing a consistently large deficit in BOP since 1970 to date. Heavy
imports are an important cause of this imbalance. The exports mostly include
raw material or primary goods which being cheaper, fetch less foreign exchange.
At the same time, our invisible payments have increased while the receipts are
less. Similarly, the prices of imports are increasing as compared to those of
exports which are decreasing.
Q#3: In the table showing imports for 2019, what goods could be
included in ‘Others’?
Ans: ‘others’ would include processed and finished consumer goods such as
paper & paper products, tyres & tubes, milk &milk food for infants, medical
products, cosmetics, toys, and many luxury items.
Q#4: Which is the single largest import? Where does the bulk of this
come from?
Ans: Crude petroleum and its products are the largest imports, as these are
needed for transport and energy. These come mainly from the Gulf States, and
Saudi Arabia. Imports of petroleum products are increasing due to rapidly rising
population, more industrialization, and rising standards as more people have
cars, motorcycles, etc.
(iii) Those which are used to improve the lives of people in Pakistan
Ans:
electronic equipment
Class: 8th Subject: Social Studies