Making of the Global World

We satisfy our wants and needs using goods and services

These goods and services come to us through trade.

Let’s learn about trade

Trade is buying,selling or exchanging of goods for a price.

Trade can be done at local level,national level or international level.

International trade helps build relations between countries.

Trade between nations began as early as 3000 B.C

Maldives used to trade with China and East Asia.

Coastal trade linked the Indus valley.

The most prominent international trade route was of the Silk Trade

Silk was very widely used at that time. Hence silk was given importance in trade.

Silk trade took place between European countries and Asian countries.

It also led to a cultural exchange between European countries and Asian countries

Because of trade and cultural exchange food was also exchanged between Asia and Europe.

Food started travelling

Traders and travellers introduced new crops to the lands they travelled.

Potato, soya, groundnuts, tomatoes, chillies, etc. were not known to us five centuries ago.

Poor people in europe begin to eat better and live longer due to new crop like potato.

Europe has spaghetti and China has noodles as a result of trade.

International Trade also had a few bad effects

Diseases also spread to some parts of the world because of exchange of goods and immigration.

America’s original inhabitants had no immunity against diseases that came from Europe.

Smallpox in particular proved to be a deadly killer.

Now we look at the International trade situation in 18th and 19th century.

India and china were considered world’s richest countries.

India and China were major manufacturers of spices.

Suddenly China stopped trading with others and isolated itself from 15th century.

This caused Europe to become the centre of world trade.

But, population was high in Europe, with hunger and poverty quite common.

Therefore many people shifted to America.

America had many natural resources and free space,so many people migrated to America.

This also moved the centre of the world trade westwards.

Let us revise what we have learnt

Trade is buying,selling or exchanging of goods for a price.

Trade can be done at local level,national level or international level.

Silk trade took place between European countries and Asian countries.

Because of trade and cultural exchange food was also exchanged between Asia and Europe.

Traders and travellers introduced new crops to the lands they travelled

Diseases also spread to some part of world because of exchange of goods and travelling people.

The End