Explain the three types of flows within the international economic exchanges during 1815-1914. -SST 10th

1 Answer

Answer :

(i) The first is the flow of goods, e.g. cloth or wheat. After the corn laws were scrapped in Britain, it started importing food. Eastern European countries, Russia and America increased their food productivity to meet the needs of Britain. There was faster growth of industry in Britain and, with increased food productivity in other countries, more land was put under cultivation. This meant building homes and settlements, which required capital and labour. (ii) The demand for labour in places like America and Australia led to migration. There was flow of labour in search of employment. Nearly 50 million people migrated from Europe to America and Australia in the 19th century. All over the world about 150 million are estimated to have left their homes and crossed oceans for a better future. (iii) This led to the third flow — movement of capital for short-term or long-term investments.By 1890 a global agricultural economy had taken shape, accompanied by complex changes in labour patterns.

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