History

Q.25.Explain the causes of the Great Depression.

OR

Examine the factors and forces responsible for the Great Depression in 1929.

Ans. During the period after the First World War most parts of the world experienced catastrophic decline in production, employment, income and trade. Agricultural region were the worst affected. This was because the fall in agricultural prices was greater and more prolonged than that in the prices of industrial goods. As prices slumped and agricultural incomes declined the farmers tried to increase their production and bring a larger volume of produce to the market to maintain their overall income. This worsened the situation by pushing down the prices of farm produce further. Various goods rotted because of lack of buyers. Secondly most of the countries of Europe borrowed money from US after the war. In the first half of 1928, they began to withdraw their loans, countries that depended crucially on US loans faced an acute economic crisis. With the fall in prices and the prospect of a depression US bank slashed domestic lending and stopped bank lo . Farms could not sell their harvests, business collapsed. Ultimately the US banking system collapsed. People lost their life’s saving, were unable to recover investments, collect loans and repay depositors. Thousands of banks were bankrupt and were forced to close. Factories closed down leading to unemployment.

Q.26. Explain what is referred to as G-77 countries. In what ways can G-77 be seen as a reaction to the activities of the Bretton Woods twins?

Ans.

1. Most of the developing countries did not benefit from the fast economic growth of western countries.
2. In order to catch up with the development in advanced industrial countries, the developing nations organized themselves as a group – the Group of 77 or G – 77 – to demand a New International Economic Order (NIEO).
3. By this they aimed to have a system that would give them control over their natural resources, more development assistance, fair prices for raw material and better access for their manufactured goods in the developed countries, market.
4. They also stressed on equitable distribution of wealth between developed and developing nations.
5. The IMF and World Bank, often referred to as the Bretton Woods twins, were designed to meet the financial needs of industrial countries. These were not equipped to face the challenge of poverty and lack of development in the former colonies.
6. On the other hand, the developing countries too needed to help of agencies like IMF and World Bank. So they too reacted to the need of the colonies. They formed the G-77.

Q.27.Explain how travel and trade help in establishing links among various countries.

Ans.Since ancient times, human societies have become more interlinked through trade and travel. In the past traders, travelers, priests and pilgrims travelled vast distances in search of knowledge, opportunity spiritual fulfillment or to escape persecution. They carried goods and money to other lands. Similarly brought back goods and precious metals which were not available in their countries – commercial exchange thus was established. These visits also led to the exchange of ideas, values, skills and techniques of production or creative talents. Food habits and knowledge of growing a special crop too travelled with them. Travelers even carried germs and disease. The incidence of long distance spread of germs of various diseases may be traced to 7th century. By 13th century it became an unmistakable link.

Q.28.What methods were used by the European employers to recruit and retain the African labourers?

Ans.

1. Heavy taxes were imposed which could be paid only by working for wages on plantation and mines.
2. Inheritance laws were changed so that the peasants were displaced from land; only one member of a family was allowed to inherit land, others were pushed into the labour market.
3. Mineworkers were also enclosed in compounds, and were not allowed to move about freely.

Q.29. What is NIEO?

Ans.NIEO is the New International Economic Order. The NIEO was a set of proposal put forward during the 1970s by the developing countries with the following main objectives.

1. To revise the international economic system in favour of the developing countries.
2. The developing nations wanted a system that would give them a real control over their natural resources.
3. The developing countries wanted to set up a system under which they could get fairer price for raw materials, and better access for their manufactured goods in the developed countries markets.
4. Developing countries much be entitled to regulate and control the activities of the Multinational Corporations (MNCs).

Q.30. How were the germs used as a powerful weapon by the Portuguese and the Spanish for the colonization of America?

Ans.

1. The Portuguese and the Spanish had a strong firepower and army.
2. But along with these, they also used germs and viruses for conquering parts of America.
3. As America was isolated, so the original inhabitants had no immunity against these dreadful germs and viruses.
4. Smallpox proved a deadly killer. Once introduced, it spread deep into the continent killing several communities and paving the way for conquests.
5. These germs were more dangerous as compared to guns and firearms because guns could be brought or captured, but there was not answer for these germs.

Q.31.Explain the impact of scrapping of the Corn Laws.

Ans.

1. Food could be imported into Britain more cheaply than it could be produced within the country. British farmers were unable to compete with imports. Vast areas of land were not left uncultivated, and thousands of men and women were thrown out of work. They flocked to the cities or migrated overseas.
2. Set back to the local producers due to fall in price, consumption in Britain rose. Consumption had also risen because of increase in income. So due to the low prices and high income of the people demand exceeded the supply. Many countries of the world like Russia, Americana and Australia and some eastern European countries started exporting food grains to Britain which gave further set back to the local producers.