CHAPTER: The Making of a Global World

with
ancient times? What did they carry
1. Why did people travel vast distances in the have become steadily more
them? OR "All through history, human societies
interlinked." Examine
Ans 1. People travelled vast distances for a variety of reasons.
and pilgrims travelled vast distances
i) In ancient times, travellers, traders, priests
fulfillment or to escape persecution.
for knowledge, opportunity, and spiritual
inventions and even germs and
in) They carried goods, money, values, skills, ideas,
diseases.
As early as 3000 BCE an
active coastal trade linked the Indus valley civilization
i)
to present day West India.
Maldives found their way to
For than a millennium,
cowries (sea shells) from the
iv) more
China and East Africa.
be traced as far back as the seventh
The long-distance spread of disease-carrying germs may
v) it had become an
unmistakable link.
century. By the thirteenth century
and cultural link
vibrant pre- modern trade
2. "Silk routes were good example of
routes linked
Examine. OR Explain how the Silk
between distant parts of the world."
the world in the ancient times. and cultural
The silk routes are a good example
of vibrant pre-modern trade
Ans 2.
world.
links between distant parts of the
of west bound Chinese, silk cargoes
i)The name' silk routes' points to the importance
along this route.
Historians have identified several
silk routes, over by sea knitting together
land and
ii) Africa. They are known to
vast regions of Asia linking
Asia with Europe and Northern
till 15th century.
Christian era and thrived almost
have existed since before the East Asia also travelled the
textiles and spices from India
and south
ii)Chinese pottery, to Asia.
precious gold and silver flowed out from Europe
same route. In return, missionaries certainly
cultural exchange went hand
in hand. Early Christian
iv) Trade and a few centuries later.
this route to Asia, as did early Muslim preachers
travelled spread and in several
from eastem India
v this, Buddhism emerged
Much before all
on the silk routes.
directions through intersecting points
food in long distance global exchange.
3. Outline the role of of the
in Europe and Asia after the discovery
(Sub q: Which crops were introduced
Americas? Points 3,4)

of long-distance cultural exchange.

Ans 3. Food offers many examples travelled. Even some ready
new crops to the lands they
i) Traders and travellers introduced believed that
share common origins. For example it is
-

in distant parts of the world

foodstuff traders took
travelled west from China to become spaghetti. In the 5th century Arab
noodles
pasta to Sicily.
ii) Some similar foods were known in
India and Japan, so the truth about their
never be known. Yet such
guesswork the possibilities of
origins may
contact even in the pre-modern world. suggests long-distance cultura
i)Many of our common foods such as potatoes, soya, ground nuts,
sweet potatoes were not known to our ancestors maize, tomatoes, chillies,
until about five centuries ago.
iv)These foods were only introduced in Europe and Asia after
accidentaly discovered the Americas. In fact, many of our Christopher Columbus
America's original inhabitants the American Indians. common foods came trom
-

4. Show the importance of new

crop of the poor. OR 'Somctimes the new crops could
make the difference between life and death'.
Ans 4. The new crop helped in Explain
providing nutritious
Sometimes the new crops could make the
food
i) difference between life and death. Europe's
poor began to eat better and live longer with the introduction of humble potato which had
high nutritional levels.
i) Ireland's poorest peasants became so
the
dependent on potatoes that when disease destroyed
potato crop in mid-1840's, hundreds of thousands died of starvation.
5. Examine the importance of the Indian Ocean before 16th
of
century. OR Before the entry
the Europeans, what was the position of Indian sub-continent and the Indian ocean
in the world trade? OR
Ans 5. Prior to the arrival of the
Europeans:
Indian Ocean had a bustling trade with
i) goods, people, knowledge, customs etc.,
crisscrossing its waters.
i) The Indian subcontinent was central to these flows and a crucial point in their
networks.
ii) The entry of the Europeans helped expand or redirect some of these flows towards
Europe.
6. Evaluate the new developments of 16th century that helped in trade. OR 'The
pre-
modern world shrank greatly in the sixteenth century after European sailors found a sea
route to Asia and also successfully crossed the western ocean to America'. Examine
Ans 6. The pre-modern world shrank greatly in the sixteenth century after European sailors
found a sea route to Asia and also successfully crossed the western ocean to America.
i) The world shrank greatly in 16 century after European sailors found a sea route to
Asia. They also successfully crossed the westen coast to America.
i) The entry of the Europeans helped expand or redirect the flow of trade, people,
knowledge and customs towards Europe.
ii) Americas were cut off from the world for millions of years. Following its discovery, from
the16th century onwards, its vast lands and abundant crop and minerals began to transform
trade and lives everywhere.
iv) The discovery of precious metals, particularly silver from mines of Peru and Mexico
enhanced Europe's wealth and its with
financed trade Asia.
Legends spread in seventeenth-century Europe about South America's fabled wealth.
v)
Many expeditions were set off in search of El Dorado, the fabled city of gold.
Conclusion: The Portuguese and Spanish conquest and colonization of America was
decisively under way by mid-16th century.
 the
pre-modern world help in
transfer of disease in the
7. Explain how the global colonise parts of
colonization of the Americas. OR How did the Spaniards successfully
America?
Ans 7. European conquest was not just a result of superior firepower.
was not a conventional military
i The most powerful weapon of the Spanish conquerors
those of small pox that they carried on their person.
weapon. t was germs such as
Because of their long isolation, Amcrica's original inhabitants had no immunity
ii)
against these diseases that came from Europe.
into the
iii) Smallpox in particular proved a deadly killer. Once introduced, it spread deep
continent, ahead even of any Europeans reaching there.
Guns could be
iv It killed and decimated whole communities, paving the way for conquest.
against
and turned the invaders. But not diseases such as smallpox to
bought or captured
which the conquerors were mostly immune.
before 19tn century. OR Examine the factors
8. Describe the social conditions of Europe
other than discases that enabled the colonization
of the Americas.
common in Europe.
Ans Until the 19tlh century, poverty and hunger were
C i t i e s were crowded and deadly diseases were widespread.
i) dissenters were persecuted. Dissenters
conflicts were common, and religious
ii were those who refused to accept established belicfs and practices.
Religious

18th century, plantations

il) Therefore, thousands fled Europe for America. Here, by
and sugar for European
worked by slaves captured in Africa were growing cotton
markets.
Explain how the shift of
9. Name the two world richest countries of 18thcentury.
how
world trade westwards, towards Europe occur in 18th century/ Examine
from 15th century onwards.
Europe emerged as the centre of trade
countries.
Ans 9. Until 18th century China and
India were among the world's richest

also pre-eminent in Asian trade.

They were

said to have restricted overseas contacts and retreated

i) From 15tm century onwards China is
into isolation.
moved the centre
ii) China's reduced role and the rising importance of the Americas gradually
centre of world trade.
world trade westwards. So now Europe emerged as a

movements or flows within international economic exchange as

10. Explain the three
identified by the economists.

Economists have identified 3 types of movements or flows within international

Ans 10.

economic exchange.
The first is the flow of trade which in the 19tn century referred largely to trade in goc
1)
like cotton and wheat.
i)
ii) The second is the flow of labour, ie. the migration of the people in search of
employment.
ii) The third is the movement
of capital for short term or
distances. long-term investments ov
i All the 3 flows were
closely interwoven and affected people's lives more
than ever before. The interconnection could deepiy
sometimes be broken. For example, labour
now

migration was often more restricted than goods or capitals flow.

11. In 19tn century Britain- self-sufficieney in food meant

lower living standards and
social confliet." Why did this happen? OR Explain the corn
laws. Why were corn laws
abolished? What was its result?2
Ans. Population growth from the late 18th century had increased the demand for food
grains in
Britain. As urban centers expanded and industry
grew, the demand for agricultural products
went up, pushing up food grain prices.
Under pressure from landed
groups, the government also restricted the import of corn.
The laws allowing the government to do this were
commonly known as the "Corn Laws'
ii) Unhappy with high prices, industrialists and urban dwellers forced the abolition of Corn
Laws.
iil) After the Corn Laws were scrapped, food could be imported into Britain morecheaply
than it could be produced within the country. British agriculture was unable to compete with
imports. AS food prices fell, consumption in Britain rose.
iv) Vast areas of land were now left uncultivated, and thousands of men and women were
thrown out of work. They flocked to the cities or migrated overseas.
12. Explain the flow of labour and capital in the 19th Century. OR Explain how
Britain's decision to import food lead to an increased migration to the Americas and
Australia.
Ans 12. Following the abolition of corn laws, food prices fell, and consumption in
Britain rose. From the mid-nineteenth century, faster industrial growth in Britain also led to
higher incomes, and therefore more food imports.
Around the world - in Eastern Europe, Russia, America and Australia- lands were cleared
i)
and food production expanded to meet the British demand.

ii) It was not enough merely to clear lands for agriculture. Railways were needed to link the
agricultural regions to the ports. New harbours had to be built and old ones expanded to ship

the new cargoes.

People had to settle on the lands to bring them under cultivation. This meant building
ii)
homes and settlements. All these activities in turn required capital and labour. Capital flowed

from financial centres such as London.

iv) The demand for labour in places where labour was in short supply-as in America and

Australia- led to more migration.

v Nearly 50 million people emigrated from Europe to America and Australia in the
nineteenth century. All over the world some 150 million are estimated to have left their

homes, crossed occans and vast distances over land in search of a better future.
13. Explain the emergence of global agricultural economy.
Ans 13. By 1890s, global agricultural
a
economy had taken
shape, accompanied by compiex
changes in labor movements patterns, capital flows, ecologies and technology.
i) Food no longer came from a nearby village or town, but from thousands of miles
ii) It was not grown by a peasant tilling is own away
land, but by an agricultural worker, perhaps
recently arrived, who was now working on a large farm that only a
most likely been a forest generation ago had
iii) It was transported by railways, built for that very purpose, and by ships which were
increasingly manned in these decades by low paid workers from southern Europe, Asia,
Africa and the Caribbean.
14. What were Canal Colonies?
Ans. Some dramatic ehange, though on a smaller scale, occurred closer home in west Punjab
i) The British Indian government built a network of irrigation canals to transform semi-
desert wastes into fertile agricultural lands that could grow wheat and cotton for export
ii) The Canal Colonies, as the arcas irrigated by the new canals were called, were settled by
peasants from other parts of Punjab.
15. Nearly 60 per cent of India's trade with Britain comprised primary products.
Explain.
Ans 15. The British Indian government built a network of irrigation canals to transform semi-
desert wastes into fertile agricultural lands.
) They wanted to grow wheat and cotton for export. Of course, food is merely an exampile.
i) A similar story can be told for cotton, the cultivation of which expanded worldwide to feed
British textile milis. Or rubber.
ii)Indeed, so rapidly did regional specialisation in the production of commodities develop, that
between 1820 and 1914 world trade is estimated to have multiplied 25 to 40 times.
Conclusion: Nearly 60 per cent of this trade comprised 'primary products' - that is,
agricultural products such as wheat and cotton, and minerals such as coal.
16. Enlist the major technological inventions of the 19th Century. Examine the role
played by technology in improving the meat trade.
Ans 16. The railways, steamships, the telegraphs, were important inventions without which the
trade transformation in 19tn century could not have happened. These advances were often the
result of the larger social, political and economic factors.
i) Colonization stimulated new investments and improvements in transport: faster
railways, lighter wagons and larger ships helped move food more cheaply and quickly from
faraway farms to final markets. The trade in meat offers a good example of this connected
process.
i) Till the 1870s, animals were shipped live from America to Europe and then slaughtered
when they arrived there. But live animals took up a lot of ship space. Many also died 1n
voyage, fel il, lost weight, or became unfit to eat.
ii) Meat was an
kept demand and expensive luxury beyond the
refrigerated production down until the reach of Furopcan poor. High
ships, which cnabled
iv) Now animals the development of new prices in tum
iv)
slaughtered fortransport of technology, namely
food at perishable food over long
were
Zealand and then transported to starting point-in distances.
lowered meat prices in Europe a frozen rmeat. This America, Australia or New
Europe.
The poor in Europe could now reduced shipping
and potatoes many could consume a more
costs an
nowW add meat varied diet. To the earlier
neace within the Better living conditionsmonotony bread
to their diet. ot
country and support for prormoted sociai
17. Explain the
imperialism aboard.
colonization of Africa by rival
Ans 17. Trade flourished and European powers.
markets expanded in the late nineteenth century.
not only a period of But this was
expanding trade and
increased prosperity.
i)It is imnportant to realise that there
was a darker side to
this process. In many parts ot the
world, the expansion of trade and a closer
loss of freedoms and
relationship with the world economy also meant a
livelihoods
ii) Late nineteenth-century European
conquests produced many painful economic, social and
ecological changes through which the colonised societies were
brought into the world
economy
ii) The rival European
powers in Africa drew up borders demarcating their respective
territories. In 1885, the big European
powers met in Berlin to complete the carving up
of Africa between themselves. This is called the
paper partition/division of Africa.
iv) Britain and France made vast additions to their overseas territories in the late
19tn
century. Belgium and Germany became new colonial powers.
v The US also became a colonial power in the late 1880s by taking over some colonies
earlier held by Spain.
18. What was rinderpest? When and how did it arrive in Africa? State its negative
effect on the lives of the people living in Africa.
(Sub q: How did the Europeans benefit from the spread of rinderpest. Ans. points 2,3)
Ans 18. Rinderpest was a fast spreading disease ofcattle plague which affected Africa in
1890s. This had a terrifying impact on people's livelihoods and local economy
i) Rinderpest arrived in Africa in the late 1880s. It was carried by infected cattle imported from
British Asia to feed the Italian soldiers invading Eritrea in East Africa.
ii) From East Africa Rinderpest moved west "like forest fire, reaching Africa's Atlantic coast
in 1892. It reached the Cape (Africa's Southernmost tip) f+ve years later. Along the way,
cattle.
Rinderpest killed 90 percent of the
mine owners and colonial
iii)The loss of cattle destroyed African livelihoods, Planters,
governments successfully monopolized what scarce cattle resources remained, to strengthen
Control over the scarce resources of
their power and to force Africans into labour market.
and subdue Africa.
cattle enabled European colonizers to conquer
in Africa prior to the arrival of the
19. Write a note on the lives of the people living
Europeans.
 and a relatively small population.
had abundant land
Ans 19. Historically, Africa African livelihoods and people rarely
worked
livestock sustained
i) For centuries, land and
for a wage. consumer goods
that wages could buy.
were few
i ) I n late nineteenth-century Africa
there reason to work for wage.
land and livestock so people saw little
There was plenty of did they encounter in
attracted the Europeans to Africa? Which problem
20. What
Africa?
were attracted due to its
vast resources of
Ans 20. In the late 19tn century, Europeans
lands and minerals
and mines to produce
i) Europeans came to Africa hoping to establish plantations
crops and minerals for export to Europe.
to work for
ii) But there was an unexpected problem - a shortage of labour willing
saw little reason to work for
wages. There was plenty of land and livestock so people
wage.
of Africa to
21. Which methods were used by the Europeans to force the people
work for them?
retain labour..
Ans 21. European employers used many methods to recruit and
on plantations
) Heavy taxes were imposed which could be paid only by working for wages
and mines.
member
i) Inheritance laws were changed so that peasants were displaced from land: only one
into the
of a family was allowed to inherit land, as a result of which the others were pushed
labour market.
ii)Mineworkers were also confined in compounds and not allowed to move about freely.
22. Mention the aspects of the two-sided nature of the nineteenth century world.
Ans 22. The following are the aspects of the two-sided nature of the nineteenth-century world.
i) It was a world of faster economic growth as well as great misery.
ii) It was a world ofhigher incomes for some and poverty for others.
ii)There were technological advances in some areas and new forms of coercion in others.
23. Explain indentured labour migration with a special reference to India. OR "The
example of indentured labour migration from India also illustrates the two-sided nature
of the nineteenth-century world'. Examine
(Sub q 1: To which Indian states did majority of the indentured labourers belong. Why did
they choose to migrate in search of work? Ans. point 3 and its sub points.
Sub q 2: Enlistthe main destinations of the Indian indentured migrants. As. Point 4
Sub q 3: How did the recruiters lure the labourers to work as indentured labourers? Ans.
point 5)
Ans 23. The example of indentured labour migration from India also illustrates the two-
sided nature of the nineteenth-century world marked by faster economic growth, higher
incomes and technological advances on one hand, and, great misery, poverty and new forms
of coercion on the other.
i) Indentured labourers are bonded labourers under contract to work for an employer for a
specific amount of time, to pay off their passage to a new country or home.
i It the 19th century hundreds of Chinese and India labourers went to work on plantations, in
mines, and in road and railway construction projects around the world, In India, indentured
labourers were hired under contracts which promised return travel to India after they had
worked five years on their employer's plantation.
 Most Indian indentured workers came from the present-day regions of Eastern UP, Dinaar,
Central India and dry districts of Tamil Nadu.
In the mid nineteenth century, these regions experienced many changes- cottage industries
declined, land rents rose, lands were cleared for mines and plantations.
b)All this
b) of the poor: they failed to pay their rents, became deeply indebted
atiected the lives
and were forced to migrate in seareh of work.
The main destinations of Indian indentured migrants were the Caribbean islands mainly
iv)
Trinidad, Guyana and Surinam) Mauritius and Fiji. Closer home, Tamil migrants went to
Ceylon and Malaya. Indentured workers were also recruited for tea plantations in Assam.
Recruitment was done by agents engaged by employers and paid a small commison.
v) their home
Many migrants agreed to take up work hoping to escape poverty or oppression in
villages. about final
vi) Agents also tempted the prospective migrants by providing false information
destinations, modes of travel, the nature of the work, and living and working conditions.
Sometimes
Often migrants were not eve told that they were to embark on long sea voyage.
agents even forcibly abducted less willing migrants.
vil) From the 1900s India's nationalist leaders began opposing system of Indentured
the
labour migration as abusive and cruel. It was abolished in 1921.
of Indian indentured workers,
viii) Yet a number of decades afterwards, descendants the Caribbean islands.
often thought of as 'coolies', remained as uneasy minority in and there
"Living and working conditions of the indentured labourers were harsh,
24. these
were.few But workers found their own ways of surviving" Explain
legal rights.
survive.
methods or ways discovered by the workers to
described as a "new system ofslavery
Ans 24 Nineteenth-century indenture has been
different from what they had
On arrival at the plantations, labourers found conditions to be
But
conditions were and there were few legal rights.
harsh,
imagined. Living and working
of surviving.
workers discovered their own ways faced severe punishment.
of them escaped into wilds, though if caught they
i) Many individual and collective self-expression,
blending
new forms of
ii) Others developed annual Muharram procession
was
old and new. In Trinidad, the
different cultural forms, Imam Hussain) in which
workers
transformed into a riotous carnival called °Hosay' (for
religions joined. star
ofall races andthe religion of Rastafarianism (popularised by
Jamaican Reggae
the
iii) Similarly, alsoprotest
ii)
said to reflect social and cultural links with Indian migrants to
Bob Marley) is
Caribbean. another creative
in Trinidad and Guyana, is
Chutney music, popular
iv) of the post-indenture
experience.
contemporary expression where thing
fusion are part of the making of the global world,
cultural
v
v) These forms of characteristics and become something
mixed, lose their original
from different places get
entirely new. or returned to their new homes
after
contracts ended,
on after
Most indentured workers stayed of people of Indian descent
vi) large communities
a short spell in India.
Consequently, there are whose novels have captured the sense
of
Noted author V.S. Naipaul,
in these countries. E.g. west Indies cricketers Shivnarine Chanderpaul
alienation felt by the labourers. The
loss and Indian descent.
Sarwan are also of
and Ramnaresh
7
 has been described as a 'new system of slavery'.
25. Nineteenth-century indenture
Comment. of slavery'. Indentured
indenture has been described as a 'new system
Ans. Nineteenth-century and in road and
labourers from India and China went to
work on plantations, in mines,
the world.
railway construction projects around and
Indentured labour migration from India reveals instances of great misery, poverty
i) under contract to work for
were bonded labourers
new forms of coercion on the. They
to a new country
an for a specific amount of time, to pay offtheir passage
employer
or home.
small commission.
by agents engaged by employers and paid or
a
ii) Recruitment was done
oppression in
Many migrants agreed to take up
work hoping to escape poverty
their home villages.
false information about
iii) Agents also tempted the prospective migrants by providingand
final destinations, modes of travel, the nature of the work, living and working
that they were to embark on long sea
conditions. Often migrants were not eve told
abducted the less willing migrants.
voyage. Sometimes agents even forcibly
conditions to be different from what
iv) On arrival at the plantations, labourers found
and working conditions were harsh, and there were few
they had imagined. Living
legal rights. But workers discovered their own ways surviving.
of
faced severe punishment.
N) Many of them escaped into wilds, though if caught they
Even after the abolition of indentured labour in 1921
for a number of decades
often thought of as 'coolies',
afterwards, descendants of Indian indentured workers,
islands.
remained as uneasy minority in the Caribbean
their role in financing the
26. Name some communities of Indian bankers and outline
business abroad.
Ans 26. Growing food and other crops for the world markets required capital. Large
plantations could borrow it from banks and markets
Chettiars were amongst the
i) Indian bankers like Shikaripuri Shroffs and Nattukottai
traders who financed export agriculture in Central and
South-
many groups of bankers and
East Asia using their own funds or those borrowed
from European banks.
over large distances, and even
ii) They hada sophisticated system to transfer money
developed indigenous forms of corporate organization. colonizers into Africa.
ii)
iit) Indian traders and moneylenders also followed European
colonies.
Hyderabadi Sindhi traders, however, ventured beyond European
From the 1860s, they established flourishing emporia at busy ports worldwide, selling
iv) to the
local and imported curios to tourists whose numbers were beginning to swell, thanks
development of safe and comfortable passenger vessels.
Explain the policies followed by the British to limit Indian industries and to help
27.
the British industries in the nineteenth century.
Ans. Historically, fine cottons produced in India were exported to Europe.
i)With industrialization, British cotton manufacturebeganto expand, and industrialists
pressurized the government to restrict cotton imports and protectlocal industries. Tarifs
were imposed on cotton imports into Britain. Consequently, the inflow of fine cotton began
to decline.
i) From the early 19ul century,
for their cloth. Excluded from theBritish manufacturers also
British markets by tariff began to seek overseas maKS
stiff competition in other international markets.
This
barriers, Indian textiles now ac
the Indian share of cotton textiles: from competition led to a steady decline ot
some 30 % around
this proportion had dropped to below 3 1800 to 15% by 1815.by 1870s
percent.
i) While exports of manufactures declined
equally fast. Beweenl812 and 1871, the sharerapidly, exports of raw materials increased
of raw cotton exports rose from 5% to 35 %.
Indigo used for dyeing cloth was another important for
iv) Opium shipments to China grew rapidly from theexport1820s to many
becomedecades.
for a while India's
single largest export. Britain grew opium in India and exported it to China and, with the
money through this sale, it financed its tea and other imports from China.
(Triangular
Trade)
v) Over 19 century, British manufactures flooded the Indian market. Food grain and raw
material exports from India to Britain and the rest of the world increased.
28. Explain the terms trade surplus and trade deficit. How did the British use Trade
Surplus to balance its deficits?
Ans 27. Trade Surplus: It implies that the value of the exports from a country is greater
than the value of its imports. It generates profits for the nation. Trade Deficit: It implies the
value of imports in a country is greater than its value of exports. It leads to losses.

i) Over 19th century, British manufactures flooded the Indian market. Food grain and raw
material exports from India to Britain and the rest of the world increased. But the value of
British exports to India was much higher than the value of British imports from India. Thus,
Britain had a "trade surplus" withIndia.
countries-that is, with
ii) Britain used this surplus to balance its trade deficits with other
countries from which Britain was importing more than it was selling
to.
to be
This multilateral settlement system alows one country's deficit with another country
ii) Britain balance its deficit, India played
settled by its surplus with a third country. By helping
a crucial played a crucial
role in the late 19tn century world economy.
home charges' that
Britain'strade surplusin India also helped pay the so called'
iv) interest payments on
included private remittances home by British officials and traders,
India.
India's external debt, and pensions of British officials in
was the First World
War fought? Explain how the First
29. Between which countries World
economic and political instability. OR "The First
world war led to wide spread
other before." Examine
War was a w a r like no
of twentieth century the world experienced widespread
Ans 28. During the first half
and a catastrophic war.
economic and political instability,
blocs. On one side were the Allies-
i) The First World War fought between two powers
was

USA); and on the opposite side were the Central

joined by
Britain, France and Russia (later that
and Ottoman Turkey. The governments thought
Powers Germany, Austria- Hungary
than four years. It was a war
Christmas, but it lasted for
more
the war would be over by the

like no other.
 harnessed the vast
involved the world's industrial nations who now
ii) The First World War the possible destruction on their enemies. Thus,
to inflict greatest
powers of modern industry of machine guns, tanks,
modern industrial war. It saw the use
this war was the first products of
etc. on a massive scale. These were all increasingly
aircratt, chemical weapons,
modern large-scale industry. the world and
millions of soldiers had to be recruited from around
ii) To fight the war, destruction-9 million
ships and trains. The scale of death and
moved to the frontlines on large without the use of
unthinkable before the industrial age,
dead and 20million injured- was

industrial arms. and injuries

maimed were men of working age. These death_
Most ofthe killed and
iv) workforce in Europe. With fewer numbers within the family,
reduced the able-bodied
industries were reconstructed to
incomes declined after the war. During the war,
household for war-as men went to
societies were also recognized
war-related goods. Entire
produce were expected to do.
in to undertake jobs only men
battle; women stepped economic links between
some of the world's largest
led to the snapping of Britain borrowed
The war
v
v) each other to pay for them. So,
now fighting
economic powers which were
US public.
sums of money from
US banks as well as the international
large international debtor to an
the US from being an
vi) Thus, the war transformed citizens owned more
overseas assets
than foreign
war's end, the US and the
creditor. At the
citizens owned in the UUS British
governments and crisis in / decline of the
the First World War lead to a prolonged
30. How did
economy? the world's
difficult. Britain, which was

Ans 29. Post war economic recovery proved

crisis.
in the pre-war period, in particular faced a prolonged
leading economy industries had developed in
India and
with war,
While Britain was preoccupied its earlier position of
After the war, Britain found it difficult to recapture
Japan. and to compete with Japan internationally.
dominance in the Indian market, from the US. This
war expenditure
Britain had borrowed liberally
ii) Moreover, to finance external debts.
the Britain was burdened with huge
meant that at the end of war
production
economic boom, that is, to a large increase in demand,
The war had led to an
contracted and unemployment
ii) When the war boom ended, production
and employment. them
the government reduced bloated war expenditures to bring
At the same time in
increased.
revenues. These developments
led to huge job losses. In 1921 one
into line with peacetime and uncertainty about work
workers was out of work. Indeed, anxiety
every five British scenario.
of the post-war
because an enduring part economies were also in crisis. Before
the war, Eastern Europe was a
iv) Many agricultural was disrupted during the
of wheat in the world market. When this supply
major supplier dramatically.
war, wheat production
in Canada, America and Australia expanded in
in Eastern Europe revived and created a glut
But once the war was over, production
v) declined, and farmers fell into debt.
wheat output. Grains prices fell, rural incomes
in 1920's after the First
31. How did production help in recovery of US economy
mass

method of mass production followed in

World War? OR Describe the assembly line
onwards.
the US from 1920's
Sub 1: Erar
(Sub q 1: Examine the contribution of
Henry Ford towards mass production
produetion in UIS.
US. Ans:
Introduction + points 1,2,3,4, 5.

Sub
haq 22: Examine the conditions of workers
employed In Henry Ford's factory. Points:
2,3,4,5.
Sub q 3: Evaluate the spread and impact of Fordist industrial practices in the US and

Europe. Points: 6,7 and 8.)

Ans 30. First World War had helped the US economy as Britain had borrowed liberally
from them. One important feature of the 1920s was mass
production,
i) The move towards mass production had begun in the 19th Century, but in the 1920s it became

a characteristic feature of industrial production in the US. Henry Ford, the car manufacturer,
was the pioneer of mass production. He adapted the assembly line of a Chicago

slaughterhouse which would allow a faster and cheaper way ofproducing vehicles.
continuously-
i) The assembly line forced workers to repeat a single task mechanically and This was a
such as fitting a particular part to the car-at a pace dictated by the conveyer belt.
the pace of the work.
way of increasing the output per worker by speeding up
afford to delay the motions, take a
ii) Standing in front ofa conveyer belt no worker could Ford's car came off
break, or even have a friendly word with a workmate. As a result, Henry achieved
much faster than that by
the assembly line at three-minute intervals, a speed
was the world's first mass-produced
car.
previous methods. The T Model Ford with the stress of working on
At first workers at the Ford factory were unable to cope
iv) in large
lines in which they could not control the pace of work. So, they quit
assembly to $ 5 in January 1914. At
the same
numbers. In desperation Ford doubled the daily wage
from operating in his plants.
time, he banned trade unions speeding up the production
line and
the high wage by repeatedly
v Henry Ford
recovered
declared his decision to double
the daily wage as the
work ever harder. He
forcing workers to
best cost-cutting decision'. in 1920s.
soon spread in
US and also widely copied in Europe
vi) Fordist industrial practices goods. Because of higher wages,
Mass production lowered costs and prices of engineered such as cars.
durable consumer goods
now afford to purchase 5 million in 1929.
more workers could more than
the US rose from 2 million in 1919 to
in radios,
a) Car production in the purchase of refrigerators, washing machines,
b) Similarly, there was a spurt a system of hire purchase'. The
demand for
gramophone players,
all through
increased.
machines etc. fînanced by loans.
refrigerators, washing construction and home ownership,
boom in house
c)War also fueled by a basis of prosperity in the
boomof the 1920s created the
vii) The housing and
consumer
goods
household seemed to create a cycle of
in housing and
US. Large investments consumption demand, more investment,
employment and incomes, rising
higher incomes.
and
and yet more employment
 world and became the
vii)
viii) In 1923, the US resumed exporting capital to the rest of the
also boosted European recovery and
largest overseas lender. US imports and capital exports
trade and income growth over the years the next six years.
combination of several factors. Examine
32. The Great Depression was caused by a
these factors.
Ans 31. The Great Depression began around 1929 and lasted till the mid-1930s. During
this period, most parts of the world experienced catastrophic declines in production,
employment, incomes and trade. The exact timing and impact of the depression varied
across countries. The Great Depression was caused by a combination of several factors-
i) AGRICULTURALOVERPRODUCION- The agricultural regions and communities
were the worst affected.
a) Agricultural overproduction remained a problem. This was made worse by falling agricultural
prices.
b) As prices slumped and agricultural incomes declined, farmers tried to expand production and
income.
bring larger volume of produce to the market to maintain their overall
o)This worsened the glut in the market, pushing dowm prices even further. Farm produce rotted
for a lack of buyers. The fall in agricultural prices was greater and more prolonged than that
in the prices of industrial goods.
COUNTRIES BORROWED FROM US- In mid 1920s, many countries financed their
i)
investnents through loans from the US.
a) while it was often extremely easy to raise loans in the US when the going was good, US
overseas lenders panicked at the first sign oftrouble. In the first half of 1928, US overseas
loans amounted to over $ 1 billion.
b) A year later it was one quarter ofthat amount. Countries that depended crucially on US loans
now faced acute crisis.
ii) WITHDRAWL OF LOANS BY USA- The withdrawal of US loans affected much of
the rest of the world, though in different ways.
a) In Europe, it led to the failure of some major banks and the collapse of currencies such as
the British pound sterling.
b) In Latin America and elsewhere it intensified the slump in agricultural and raw material
prices.
c)The US attempt to protect its economy in the depression by doubling import duties also dealt
another severe blow to the world trade.
iv) US SLASHED DOMESTIC LENDING- The US was also the industrial country most
severely affected by the depression.
a) With the fall in prices and the prospect of a depression, US banks had also slashed domestic
lending and called back loans.
b) Farms could not sell their harvests, households were ruined, and business collapsed.
c) Faced with falling incomes, many households in the US could not repay what they had
borrowed, and were forced to give up their homes, cars, and other consumer durables. The
consumerist prosperity ofthe 1920s now disappeared in a puff of dust.
v) UNEMPLYMENT- As unemployment soared, people trudged long distances
looking for any work they could find.
vi) US BANKING SYSTEM COLLAPSED-Ultimately US banking system itself
collapsed.
 to recover
a) Unable
1e to
investments, collect loans and
bankrupt and wer forced to close. repay depositors, thousands of banks went
Dumbers
b)Thenumbers are
phenomenal: by 1933 over
1932 about 110,000 companied collapsed. 4,000 banks had closed and betweenn 1929 and
Conclusion: By 1939, a modest economic
recovery
was under way in most industrial
nries. But the Great Depression's wider
count
effects on society, politics and
and on
International
relations, people's minds, proved more enduring,
did the Great Depression
33. impact/affect India?
Crh a 1: How did the Great Economice Depression affect the Indían traders? Ans.
Introduction +point 1.
Suh a 2: Examine the effect of the Economic depression on the Indian
Introduction + points 2,3,4, &5. peasants. Ans.
Sub q 3: Discuss the impact of the Economic depression on the lives of the urban dwellers
inIndia.Ans. Introduction + point 6)
Ans 32. The impact of the Great Depression on world economy proved that the global
economy was very much integrated by the early 20th century. The tremors of a crisis in one
part of the world were quickly relayed to other parts, affecting lives, economies and
societies worldwide.

i) In 19th century colonial India had become an exporter of agricultural goods and importer of
manufactures. The depression immediately affected Indian trade. India's exports and imports
nearly halved between 1928 and 1934. As intermational prices crashed, prices in India also
%.
plunged. Between 1928 and 1934, wheat prices in India fell by 50
ii) Peasants and farmers suffered more thanurban dwellers. Though agricultural prices fell
for
sharply, the colonial government refused to reduce revenue demands. Peasants producing
the world market were the worst hit.
was processed in factories for export in the
i) The jute producers of Bengal grew raw jute that the prices of raw jute crashed more than
form of gunny bags. But as gunny exports collapsed,
better times or to increase output in the
60 percent. Peasants who borrowed in the hope of
hope of higher incomes faced ever lower prices, and fell deeper and deeper into debt.
increased. They used up their savings, mortgaged
Iv) Across India, peasants' indebtedness metals they had to meet their expenses. In
lands, and sold whatever jewellery and precious of
an exporter precious metals, notably gold.
these years, India became
depression
thought that Indian gold exports promoted
V) The famous economist John Maynard Keynes
economic They certainly helped speed up Britain's but did little for the
global recovery.
with unrest when Mahatma Gandhi launched
Indian peasant. Rural India was thus seething
depression in 1931.
the civil disobedience movement at the height ofthe
urban India. Because of falling prices, those with fixed
V1 The proved less grim for
depression who received rents and middle- class salaried
incomes-i.e. town dwelling landowners investments also
themselves better off. Everything cost less. Industrial
employees-now found
to industries, under the pressure of
grew as the government extended tariffprotection
nationalist opinion.
between which camps? What were the il1
34. The Second World War was fought
effects of Thé Second World War?
 Ans 33. A) Camps
The Second World War (1939-45) broke out a mere two decades after the end of the First
World War. It was fought between the Axis powers (mainly Nazi Germany, Japan and

Italy) and Allies (Britain, France, Soviet Union and the US).
B) I ETects of WwII

waged for six years on many fronts, in many places, over land, on sea, in the air,

i) Death and destruction was enormous. At least 60 million people, or about 3 percent of th.
world's 1939 population, are believed to have been killed, directly or indirectly, as a
result of
the war. Millions more were injured.
ii) Unlike in earlier wars, most of these deaths took place outside the battlefields.
Many more civilians than soldiers died from war related causes.
ii) Vast parts of Europe and Asia were devastated, and several cities were
destroyed
by aerial bombardment or relentless artillery attacks.
iv) The war caused an immense amount of economic devastation and social
disruption. Reconstruction promised to be long and difficult.
35. Which two crucial influences shaped the post war reconstruction?
Ans 34. The two crucial influences which shaped the post-war reconstruction were:
i) Emergence of US as the dominant economic, political and military power in the
Western world.
ii) The dominance of the Soviet Union who had made huge sacrifices to defeat Nazi
Germany, and transformed itself from a backward agricultural country into a world power
during the very years when the capitalist world was trapped in the Great Depression.
36. State and explain the two key lessons learnt by the economists and politicians from
the inter-war economic experience. OR The main aim of the post war international
economic system was to preserve economic stability and full employment in the
industrial world'. Why?
Ans 35. Economist and politicians drew two key lessons from inter-war economic

experiences
i) The First Lesson: They realised that an industrial society based on mass production cannot
be sustained without mass consumption.
a) But to ensure mass consumption, there was a need for high and stable incomes. Incomes could
not be stable if employment was unstable. Thus, stable incomes also required steady, full
employment.
b) But the markets alone could not guarantee full employment. Therefore, governments would
have to step in to minimize fluctuations of price, output and employment. Economic stability
could be ensured only through the intervention ofthe government.
i) The Second Lesson: This related to a country's economic links with the outside world. The
flows of
goal of full employment could only be achieved if governments had power to control
goods capital and labour.
 lusion: Thus, the
main
stability and fullaim
of the
Co :onomic
omic stabili post war international
employment
What was the significance of Brettonin the industrial world.
37.
economic system was to
preserve
World Bank? Or Why were the Woods Conference/
A United Nations Bretton Woods Establishment of IMF and
Ans 36.
Woods in New
Monetary and Financial institutions
Conference
set up?
Bretto
Hampshire, USA, to create an international held in July 1944 at
reserve economic:stability and
was

P generateestabhle
full economic system to
i
The Bretton
The Bretton Woods
Woods conference employment
conference established the ment in the industrial
industrial world.
world.
MF) to deal with external surpluses and International Monetary Fund
The International Bank for deficits of its member nations.
ii) Reconstruction and Development (World Bank) was set
to finance post-war reconstruction. up
) The IMF and the World Bank are referred to as the
the Bretton Woods twins. The post war internationalBretton Woods institutions or sometimes
economic system is also often described
as the Britton Woods system.
iv) The IMF and W.B commenced financial
operations in 1947. Decision making in these
institutions is controlled by the Western industrial powers. The US has an effective right of
veto over key IMF and W.B decisions.
The international monetary system is a system linking national currencies and monetary
system. The Bretton Woods system was based on fixed exchange rates. In this system,
national currencies, for example the Indian Rupee, were pegged to the dollar at a fixed
exchange rate. The dollar itself was anchored to gold at a fixed price of$ 35 per ounce of
gold.
countries?
38. What was the impact of Bretton Woods system on the Western industrial
of trade
OR "The Bretton Woods system inaugurated an era of unprecedented growth
Examine
and incomes for the Western industrial nations and Japan." and
Ans 37. The Bretton Woods system inaugurated an era of unprecedented growth oftrade
incomes for the Western industrial nations and Japan. 1970 and incomes
between 1950 and
World trade rapidly grew annually at over 8 per centwithout fluctuations. For much of
cent. The growth was also mostly stable, large
nearly 5 per less than 5 per cent in most industrial
countries.
this period the unemployment rate, averaged
saw the worldwide spread
of technology and enterprise. Developing
decades also
i) These industrial countries. Therefore, they
in a hurry to catch up with the advanced modem
countries
plant and equipment featuring
were

invested vast amounts of capital, importing industrial

countries.
technology financial needs of the industrial
designed to meet the in
in) The IMF and W.B of poverty and lack of development
were
with the challenges
They were not equipped
to cope economies, they grew less
and Japan rapidly rebuilt their
the former colonies. But as Europe
World Bank.
dependent on the IMF and the institutions began to shift their
Woods
Bretton
late 1950s the
Conclusion: Thus, from the countries.
towards developing economic and political changes that
attention decolonization, and,
more

9. Write a note on the process of

ended.
World War institutions began to
shift their attention
place when the II
took the Bretton
Woods
Ans. 38 points 2,3, &5)
(Sub "From the late 1950s 4
q: countries." Why?
nore towards developing
 Ans 38. As the Second World War ended large parts of the
world were still European
under

colonial rule. Over the next two decades most colonies in Asia
and Africa emerged as free,
independent nations.
lack of resources, and their
They were however, overburdened by poverty and a
i) economies and societies were handicapped by long periods of colonial rule.
The IMF and the World Bank were designed to meet the financial needs of the industrial
ii) countries. They were not equipped to cope with the challenge of poverty and lack of
development in the former colonies.
i) But as Japan and Europe rapidly rebuilt their economies, they grew less dependent on the
IMF and the World Bank. Thus, from the late 1950s the Bretton Woods institutions began to
shift their attention more towards developing countries.
iv) As colonies, many of the less developed regions of the world had been part of Western
empires. As newly independent countries facing urgent pressures to lift their population out
of poverty, they came under the guidance of international agencies dominated by the former
colonial powers.
v) Even after many years of decolonization, the former colonial powers still controlled vital
resources such as minerals and land in many of their former colonies. Large corporations of
other powerful countries, for example the US, often managed to secure rights to explot
developing countries resources cheaply.
38.
38. Why did the developing countries organise themselves as G-77 countries? OR Why
and how did the newly independent countries push for the creation of a New
International Economic Order (NIEO)?
Ans 38. In the late 1950s many Asian and African colonies emerged as free and
independent countries. They were overburdened by poverty and a lack of resources, and
their economies were handicapped by long periods of colonial rule.
i) Most developing countries did not benefit from the fast growth the Western economies
experienced in the 1950s and 1960s.Threfore they organized themselves as a Group of 77
countries-(or G 77).
ii) The IMF and World Bank were designed to meet the financial needs of the industrial
countries. They were not equipped to cope with the challenge of poverty and lack of
development in the former colonies.
ii) The colonial powers still controlled the vital resources such as minerals and land in
many former colonies
iv) The developing newly independent countries organized themselves as G 77, a reaction to
the activities of the Bretton woods institutions, to demand a new international economic
order (NIE0). By the NIEO they meant a system that would give them real control over their
natural resources, more development assistance, fairer prices for raw materials, and better
access for their manufactured goods in the developed countries' markets.
39. Examine the New Economic Changes/ developments took place in 1970s. What
were its effect on the US and Asian countries?
Ans 39. A: ECONOMIC CHANGES IN 1960's and 70's
Despite years of stable and rapid growth, not all was well in this post-war world.
i) From 1960s the rising cost of its overseas involvements weakened the US's finances and
competitive confidence as the world's principal currency.
 0uld
i) It coule maintain its value in relation to
not
vstem
syster of fixed gold. This eventually led to the
Erom exchange rates and the
introduction of a system of collapse of the
mid-1970s the international financial
)From the mid-1
floating exchange rates
Farlier developing countries could turn to system also changed in
assistance.
important ways.
international institutions for loans and development
The developing countries were forced to borrow from
londing institutions. This led to periodic debt crises Western commercial banks and private
in
incomes and increased poverty, especially in Africa the developing world, and lower
Latin America. and
R.TMPACT OF THIE ECONOMIC CHANGES ON WORLD
Sth a: 'From the late 1970s MNCs also ECONOMY
began to shift production operations to low -wage
Asian countries'. Explain this statement with a
suitable example. Ans: Part B, points 2,3
and 4)
The developing countries were forced to borrow from
Western commercial banks and private
lending institutions. This led to periodic debt crises in the
incomes and increased poverty, especially in Africa and
developing world, and lower
Latin America.
i)The industrial world was also hit by unemployment that began
remained high until the early 1990s. From the late 1970s MNCsrising
from mid-1970s and
also began to shift production
operations to low -wage Asian countries.
i) China had been cut off from the post-war world economy since its revolution in 1949. But
new economic policies in China and the
collapse of the Soviet Union and Soviet style
communism in Eastern Europe brought many countries back into the fold of the world
economy.
ii)Wages were relatively lowincountries like China. Thus, they became attractive destinations
for investments by foreign MNCs competing to capture world markets. Most of the Tv's,
mobile phones, and toys we see in the shops seem to be made in China. This is because of
the low-cost structures of the Chinese economy, most importantly low wages.

iv)The relocation of industry to low-wage countries stimulated world trade and capital flows. In
the last two decades, the economies of India, China and Brazil have undergone rapid

economic change.
40. IMPORTANT TERMS
Dissenter - One who refuses to accept established beliefs and practices.
2. Indentured labour- A bonded labourer under contract to work for an employer for a
Specific amount of time, to pay off his passage to a new country or home.
1aritt-Tax imposed on a country's imports from the rest of the world. Tariffs are levied at

ne point of entry, i.e., at the border or the airport.

4. Exchange1
XChange rates- They link national currencies for purposes of international trade. There are
orOadly two kinds of exchange rates: fixed exchange rate and floating exchange rate.
 S. Fixed exchange rates- When exchange rates are fixed and governments intervene to prevent
movements in thenm.
6. Flexible or fMoating exchange rates - These rates fluctuate depending on demand and

supply of currencies in foreign exchange markets, in principle without interference by

govemments.
ADDITIONAL QUESTIONS (BOX QUESTIONS)
1. How according to Alfred Crosby, did John Winthrop react to the spread of small
pox in the colonies? (Alfred Crosby, Ecological Imperialism)
Ans. John Winthrop, the first governor of the Massachusetts Bay colony in New England,
wrote in May 1634 that smallpox signalled God's blessing for the colonists. Given the fact
that most of the native populations in the colonies were wiped out due to the spread of small
pox, implied that the Almighty was in favour of the European domination over the rest of the
world.

2. Who was Henry Morgan Stanley? What does his exploration of Africa indicate about
the European motive to explore new lands?
Ans. Stanley was a journalist and explorer sent by the New York Herald to find Livingston, a
missionary and explorer who had been in Africa for several years.

i) Like other European and American explorers ofthe time, Stanley went with arms, mobilised
local hunters, warriors and labourers to help him, fought with local tribes, investigated
African terrains, and mapped different regions.
ii) These explorations helped the conquest of Africa. Geographical explorations were not driven
by an innocent search for scientific information. They were directly linked to imperial
projects.
3 When and why were MNC's set up? Why was the worldwide spread of MNC's
considered a notable feature of 1950's and 1960's?
Ans. Multinational corporations (MNCs) are large companies that operate in several
countries at the same time.

1. The first MNCs were established in the 1920s. Many more came up in the 1950s and
1960s as US businesses expanded worldwide and Western Europe and Japan also
recovered to become powerful industrial economies.
2. The worldwide spread of MNCs was a notable feature of the 1950s and 1960s. This was
partly because high import tariffs imposed by different governments forced MNCs
to
locate their manufacturing operations and become domestic producers' in as many
countries as possible.