24 CBSE Term II Social Science X

Chapter
Practice
PART 1 5. Which of the following would be provided to the
developing countries by the New International
Objective Questions Economic Order (NIEO)? Identify the correct
option.
! Multiple Choice Questions (a) More development assistance.
(b) Real control over their natural resources
1. Which among the following countries were among (c) Fixed exchange rates
the world’s richest countries and the main centres of (d) Both (a) and (b)
trade? Choose the correct option:
Ans. (d) NIEO would provide more development assistance
(a) India and China (b) China and Japan and real control over natural resources.
(c) China and Britain (d) India and Japan
Ans. (a) India and China until the 18th century were among the
6. Identify the method from the following information.
world’s richest countries and the main centres of world !
This method was used in Chicago slaughterhouse.
trade. !
This method forced the workers to repect a single
2. Who wrote in May 1634 that small pox signalled task.
God’s blessing for the colonists: ‘ ... the natives ... !
This method was faster and cheaper way of
were near all dead of small pox, so as the Lord had producing goods.
cleared our title to what we possess’. Identify the (a) Assembly line (b) Mass production
correct option. (c) Line production (d) None of these
(a) Alfred Crosby (b) John Winthorp Ans. (a) The given information is about Assembly line method.
(c) MW Ridley (d) Michael Fitzgerald 7. Choose the correctly matched pair from the given
Ans. (b) John Winthorp , the first governor of the Massachusetts options.
Bay colony in New England, wrote these words.
(a) 1845 – European powers meet in Berlin to divide-up
3. Identify the reason which made the transport of Africa between themselves.
perishable products over long distances possible, (b) 1921 – Indentured Labour abolished
from the given options. (c) 1939 – First World War
(a) Steam Ships (b) Refrigerated ships (d) 1890 – Potato Famine in Ireland
(c) Airline Services (d) Refrigerated Trains Ans. (b) Indentured labour was abolished in 1921.
Ans. (b) The development of refrigerated ships greatly helped to
transport the perishable food items over long distances.
8. Choose the correctly matched pair from the given
options.
4. Which of the following statements is appropriately (a) Remittance – Supply of something in excess.
associated with World War I ?
(b) Glut – An amount of money that is sent as a
(a) Britain borrowed large sums of money from US banks
payment for something.
as well as the US public.
(b) The First World War was mainly fought in Europe but (c) Catastrophic – A terrible disaster
it had impacted on the whole world. (d) Tariff – A riotous carnival
(c) First World War was the first modern industrial war.
Ans. (c) Catastrophic means a terrible disaster.
(d) All of the above
Remittance here means an amount of money that is sent
Ans. (d) All the given statements are correct about First World
War. as a payment for something.
Glut here means supply of something in excess.
CBSE Term II Social Science X 25

Tariff means a tax imposed on a country’s imports from the Ans. (b) The time period of Great Irish Potato Famine was
rest of the world. Tariffs are levied at the point of entry i.e. 1845 to 1849.
at the border or the airport.
12. Following image depicts a prospective buyer
9. Match the following. carefully inspecting slaves lined up before the
Column I Column II
auction. To attract buyers, slaves were often
dressed in their best clothes. Identify the year in
A. Global agricultural economy 1. 1929
which this image was illustrated in London News.
B. First World War 2. 1914-18
C. Great Depression 3. 1890
D. Civil Disobedience Movement 4. 1931
Codes
A B C D A B C D
(a) 2 3 4 1 (b) 3 2 1 4
(c) 4 3 2 1 (d) 1 4 3 2
Ans. (b)
10. Match the following:
List-I List-II (a) 1849 (b) 1850 (c) 1851 (d) 1852
A. First World War 1. US banking system collapsed Ans. This image was illustrated in London News in 1849.
B. Great Depression 2. First Modern industrial war ! Assertion-Reason MCQs
C. Second World Post War 3. Bretton Woods Institutions
Reconstruction Directions (Q. Nos. 13-17) Each of these questions
D. IMF and World Bank 4. US emerged as the world’s contains two statements, Assertion (A) and Reason
dominant power (R). Each of these questions also has four
Codes
alternative choices, any one of which is the correct
answer. You have to select one of the codes (a), (b),
A B C D A B C D
(c) and (d) given below.
(a) 2 4 3 1 (b) 2 1 4 3
(c) 4 3 2 1 (d) 3 1 4 2 Codes
Ans. (b) (a) Both A and R are true and R is the correct
explanation of A
11. Following image depicts hungry children digging for (b) Both A and R are true, but R is not the correct
potatoes in a field that has already been harvested, explanation of A
hoping to discover some leftovers. Identify the time (c) A is true, but R is false
period in which around 1,000,000 people died of (d) A is false, but R is true
starvation in Ireland due to Great Irish Potato Famine,
and double the number emigrated in search of work.
13. Assertion (A) Most of the TVs, mobile phones and
toys we see in the shops seem to be made in
China.
Reason (R) Industries are relocated to China due
to the low-cost structure of the Chinese economy
most importantly its low wages.
Ans. (a) Most of the TVs, Mobile Phones and toys we see in
the shops are made in China because of the low-cost
structure of the Chinese Economy most importantly its
low wages. Hence, both assertion and reason
statements are true and justify each other.
14. Assertion (A) Developing countries are now
forced to borrow from Western commercial banks
and private lending institutions.
Reason (R) Periodic debt crises in the developing
(a) 1842-1844 (b) 1845-1849 world and lower incomes and increased poverty
(c) 1850- 1853 (d) 1854- 1858 are evident, especially in Africa and Latin Africa.
26 CBSE Term II Social Science X

Ans. (a) Due to change in International Financial System after the however, overburdened by poverty and a lack of
mid 1970s, developing countries are now forced to borrow resources, and their economies and societies
from western commercial banks and leading institutions. were handicapped by long periods of colonial
This has resulted into periodic debt crises in the rule. The IMF and the World Bank were
developing world and lower incomes and increased designed to meet the financial needs of the
poverty, especially evident in Africa and Latin Africa. industrial countries. They were not equipped to
Hence, both the assertion and reason statements are true cope with the challenge of poverty and lack of
and justify each other. development in the former colonies. But as
15. Assertion (A) Worldwide spread of MNCs was a Europe and Japan rapidly rebuilt their
notable feature of the 1950s and 1960s. economies, they grew less dependent on the
Reason (R) US businesses expanded worldwide and IMF and the World Bank. Thus, from the late
Western Europe and Japan also recovered to become 1950s the Bretton Woods institutions began to
industrial economies. shift their attention more towards developing
Ans. (b) Worldwide spread of MNCs was a notable feature of the countries. As colonies, many of the less
1950s and 1960s because high import tariffs imposed by developed regions of the world had been part of
different government forced MNCs to locate their Western empires. Now, ironically, as newly
manufacturing operations and became domestic producers independent countries facing urgent pressures to
in as many as countries as possible. lift their populations out of poverty, they came
On the other hand, many MNCs came up during the 1950s under the guidance of international agencies
and 1960s as US businesses expanded worldwide and dominated by the former colonial powers.
Western Europe and Japan also recovered to become
industrial economies. Hence, both assertion and reason are
Even after many years of decolonisation, the
true, but reason is not the correct explanation of assertion. former colonial powers still controlled vital
resources such as minerals and land in many of
16. Assertion (A) During the Great Depression of 1929, in their former colonies. Large corporations of
general, agricultural regions and communities were other powerful countries, for example the US,
the worst affected. also often managed to secure rights to exploit
Reason (R) The fall in agricultural prices was greater developing countries’ natural resources very
and more prolonged than that in the prices of cheaply.
industrial goods.
(i) Why the Bretton Woods Institutions were
Ans. (a) During the Great Depression, agricultural regions and established? Choose the correct option from the
communities were the worst affected because the fall in following:
agricultural prices was greater and more prolonged than that
(a) To promote the International Trade
in the prices of industrial goods. Hence, both assertion and
(b) To reconstruct the economies damaged during the
reason statements are true and justify each other.
Second World War
17. Assertion (A) In Africa, in the 1890s, a fast-spreading (c) To improve the adverse Balance of Payment
disease of Cattle Plague or rinderpest had a terrifying situation of the non member countries
impact on people’s livelihoods and the local economy. (d) All of the above
Reason (R) There was widespread European imperial Ans. (b) The motive behind the establishment of the
impact on colonized societies. Bretton Woods Institutions was to provide funds to
Ans. (b) In Africa, in the 1890s, a fast spreading disease of Cattle member countries for economic reconstruction and
Plague or rinderpest had a terrifying impact on people‘s development of the economies ruined by World War II.
livelihoods and the local economy. This is a good example of (ii) What factors led to decolonisation after the
the widespread European imperial impact on colonized Second World War? With reference to the above
societies. Hence, both assertion and reason statements are context, infer the appropriate option.
true, but reason is not the correct explanation of assertion. (a) After World War-II, European countries lacked the
wealth and political support necessary to suppress
!
Case Based MCQs the revolts.
(b) There were strong independence movements in
18. Read the case/source given and answer the questions colonies.
that follow by choosing the correct option. (c) Both (a) and (b)
When the Second World War ended, large parts of the (d) Financial needs of European countries were not
world were still under European colonial rule. Over favoured as they were colonial powers.
the next two decades most colonies in Asia and Africa Ans. (c)
emerged as free independent nations. They were,
CBSE Term II Social Science X 27

(iii) Which of the following countries has an effective (b) As its focus was to improve the European industrial
right of veto over key IMF and World Bank centres.
decisions? Select the best suitable option from the (c) Through Bretton Woods Institutions, European rulers
following reference to the context: continued their control over colonies resources.
(d) All of the above
(a) France (b) Australia (c) Russia (d) USA
Ans. (c)
Ans. (d) USA has an effective sign of veto over key IMF and
World Bank decision. (vi) Assertion (A) World Bank and IMF were
(iv) Why did the Bretton Woods Institutions shift their established after the Second World War.
focus from industrial countries to colonies? Identify Reason (R) Second World War caused an immense
from the given options. amount of economic destruction and many parts of
(a) As upliftment of poor countries was a central notion. Europe and Asia were destroyed.
(b) Because industrial countries had rebuilt their Codes
economies. (a) Both A and R are true and R is the correct
(c) Because financial support was a need for establishment explanation of A
of administration in colonies. (b) Both A and R are true, but R is not the correct
(d) As industrial countries tried to establish their control on explanation of A
Bretton Woods Institutions.
(c) A is true, but R is false
Ans. (b) The Bretton Woods Institutions shift their focus from (d) A is false, but R is true
industrial countries to colonies because industrial
Ans. (b) World Bank and IMF were established after the
countries had rebuilt their economies.
Second World War. On the other hand, Second World
(v) How did Bretton Woods Institutions failed in War has caused ‘an immense amount of economic
maintaining the idea of decolonisation? destruction and many parts of Europe and Asia were
Choose the correct option. destroyed. Hence, both assertion and reason statements
(a) The European rulers played a dominant role in Bretton are true, but reason is not the correct explanation of
Woods Institutions. assertion.

PART 2
Subjective Questions
!
Short Answer (SA) Type Questions !
Ready food stuffs in distant parts of the world might
share common origins. It is believed that noodles
1. Describe the significance of silk routes in the
travelled West from China to become spaghetti.
pre-modern period in the field of trade cultural
exchange and religion. (CBSE 2014)
!
Arab traders took ‘pasta’ to Sicily in Italy.
!
Many of our common foods like potatoes, soya,
Ans. The significance of silk routes were
groundnuts, maize, tomatoes, chillies were not known
!
The silk routes are good examples of pre-modern trade to us. These foods came from American Indians and
and cultural links between the distant parts of the world, we became gradually dependent on these.
i.e. linking Asia with Europe and North Africa.
!
Along the silk routes, the silk cargoes from China, Indian 3. Explain any three effects of scraping Corn Laws in
spices and textiles, gold and silver from Europe were Britain. (CBSE 2020)
carried to different parts of the world. Ans. Three effects of scraping Corn Laws in Britain were
!
The Buddhist preachers, Christian missionaries and !
After the Corn Laws were abolished, food could be
later on, Muslim preachers travelled along these imported into Britain more cheaply than it could be
routes. produced within the country.
!
These routes proved to be a great source of trade and !
British agriculture was unstable to compete with
cultural links between distant parts of the world. imports. Vast areas of land were now left uncultivated
and thousands of men and women were thrown out of
2. ‘Food offers many examples of long distance cultural work. They migrated to the cities or other countries in
exchange’. Justify this statement. (CBSE 2011)
search of work.
Ans. Food offers many examples of long distance cultural !
As the food prices fell, consumption in Britain rose.
exchange in the following ways From the mid 19th century, faster industrial growth in
!
Traders and travellers introduced new crops to the lands Britain also led to higher incomes and therefore, more
they travelled. food imports.
28 CBSE Term II Social Science X

4. Explain three reasons for the attraction of Europeans 7. Mention any three circumstances that compelled
to Africa. (CBSE 2012) Indians and Chinese to work as indenture labour
Ans. The three reasons for the attraction of European to Africa in plantation and mines. (CBSE 2016)
were Ans. In the 19th century, hundreds of thousands of Indians
(i) Africa had abundant land and was rich in mineral and Chinese labourers went to work on plantations in
resources. Its population was relatively small. mines and in different construction projects as
(ii) The Europeans were hoping to establish plantations indentured labour around the world. The
and mines in Africa to produce crops and minerals for circumstances that compelled them to work as
export to Europe. indentured labour were
(iii) In Africa, industrial revolution did not take place. (i) Decline of cottage industry
Africans were militarily weak and backward. Europeans (ii) Increase in land rents
thought that they could easily capture the country and (iii) Unemployment, poverty and indebtedness
use its resource and people for their own profit.
Due to these reasons, poor were forced to migrate in
5. Describe the impact of ‘Rinderpest’ on people’s search of work. The prospective migrants were
livelihood and local economy in Africa in the 1890s. tempted by the false promises of the agents and
Ans. Rinderpest was a cattle plague spread by Asian cattle taken became indentured labourers.
to Africa to feed the Italian soldiers by the European 8. Describe the economic condition of Britain after
colonisers. The impact of ‘rinderpest’ on people’s livelihood the ‘First World War’. (CBSE 2018)
and local economy in Africa in the 1890s was
Ans. The economic condition of Britain after the First
!
Economic Impact Rinderpest killed 90 per cent of the World War was
cattle. This virtually destroyed the African economic !
Britain which was a leading economy of the world
system based on cattle and land. Africans, who worked
before the First World War faced a prolonged crisis.
rearing cattle, were unemployed and forced to earn their
While Britain was pre-occupied with war, industries
livelihood by working in mines and on plantations set-up
had developed in Japan and India. After the war,
by the Europeans.
Britain found it difficult to recapture its earlier
!
Impact on Livelihood Using this plague advantage, position.
colonising nations successfully monopolised cattle !
Britain has borrowed liberally from the USA for its
resources. By this, they strengthen their power and forced
war time expenditure, thus at the end of the war,
Africans into the labour market.
Britain was burdened with huge external debt.
6. Who were indentured labourers? How were they !
After the war, production in Britain contracted
recruited? Explain condition of the indentured which led to huge job losses. In 1921, one in every
labourers who went to work in different parts of the five British workers was out of work. Anxiety and
world. (CBSE 2013, 12) uncertainty about work became an enduring part of
Or Write a short note on indentured labourers. the post-war time.
Ans. Indentured labourers were bonded labourers under contract 9. Examine how the First World War transformed
to work for an employer for a specific amount of time, to pay the US from being an international debtor to an
off their passage to a new country or home. international creditor.
They were recruited by agents engaged by employers and Ans. The First World War has transformed the US from
were paid a small commission. being an international debtor to an international
The condition of the indentured labourers in different parts creditor in the following ways
of the world was very pathetic in the following ways !
During the war, industries were restructured to
!
They were subjected to harsh, inhuman and unsympathetic produce war related goods. The US became the big
conditions. supplier of war needs. So, the war helped to boost
!
If they were unwilling to migrate, they were captured by the US economy.
agents. !
The war led to the snapping of economic links
!
If they were caught while escaping, they faced severe between some of the world’s largest economic
punishment. powers which were now fighting with each other to
!
They have very few legal rights. pay for them.
!
Deductions were made from their wages, if the work was
!
Due to war, Britain borrowed large amount of money
found unsatisfactory. from US banks.
CBSE Term II Social Science X 29

10. Describe the great economic hardship that 13. What are MNCs? Why MNCs choose China as an
prevailed in Europe during the 1830s. (CBSE 2019) alternative location for investment?
Ans. Economic hardships that prevailed in Europe during the Ans. Multinational Corporations (MNCs) are large companies
1830s were that operate in several countries at the same time.
!
The first half of the nineteenth century saw an The first MNCs were established in 1920s. The MNCs
enormous increase in population all over Europe. choose China as an alternative location of investment
Migration of rural people to the cities further made the because
situation worse. !
Availability of skilled and unskilled labours/ workers at
!
Small producers in towns faced stiff competition from low wages
import of cheap machine-made goods from England. !
Less cost of production
This competition was mainly faced by the textile !
China has the largest population besides labour. They
production as it was carried out mainly in homes or also formed a large consumer base.
small workshops which were partly mechanised.
!
Some regions of Europe which were under the feudal
14. Analyse any three factors that make globalisation
rule, the condition of the peasants was not good. The more fair. (CBSE 2019)
rise of food prices and bad harvest led to widespread Ans. Fair globalisation means that the benefits of the
pauperism in town and country. globalisation must be shared by all equally. The ways to
make globalisation fair in India are
11. How did Bretton Woods inaugurate an era of
(i) Government needs to care about the labour laws so
unprecedented growth in trade?
that workers get their trade union rights.
Or Explain the role of Bretton Woods institutions in (ii) Government can negotiate with WTO for fairer rules
post-Second World War settlement. (CBSE 2020) and can align with developing countries to stand
Ans. Bretton Woods inaugurated an era of unprecedented against the domination of developed countries.
growth in trade by establishing International Monetary (iii) Supporting the small producers to improve their
Fund and Bank for Reconstruction and Development performance so that they remain viable in the face of
known as world Bank competition from MNC.
The Bretton Woods Conference established the
International Monetary Fund (IMF) to deal with external
15. Why did Group 77 countries demand a New
surplus and deficits of its member nations. The International Economic Order? Explain. (CBSE 2010)
conference established the World Bank to finance Ans. Group 77 countries demanded a New International
post-war reconstruction. Economic Order (NIEO) because
The IMF and World Bank were referred as the Bretton !
They wanted to revise the International Economic
Woods Institutions or the twins of the Bretton Woods. System in favour of the developing countries.
Both these institutions commenced financial operations in !
They wanted a system that would give them a real
1947. Decision making in these institutions was control over their natural resources.
controlled by the Western industrial powers. !
They wanted to set up a system under which they could
12. How did housing and consumer boom lead to get a fairer price for raw materials and better access for
prosperity in the US? their manufactured goods in the developed countries’
market.
Ans. The housing and consumer boom in the 1920s created the
basis of prosperity in the US in the following ways !
Long Answer (LA) Type Questions
!
Large investments in housing and household
goods seemed to create a cycle of higher 1. Describe the role of technology in transformation of
employment and incomes. This led to rising the world in the 19th century. (CBSE 2019)
consumption demand, more investment and again Ans. Technology has played an important role in
more employment and incomes. transformation the world economy in the 19th century in
!
In 1923, the US resumed exporting capital to the rest of the following ways
the world and became the largest overseas lender. !
Technology can be regarded as the primary source in
!
US imports and capital exports boosted European economic development. The railways, steamships, the
recovery and world trade and also it enhanced the telegraph were important inventions in the nineteenth
income growth over the next six years. century.
30 CBSE Term II Social Science X

!
The technological advances were the result of larger break. In the beginning, many workers quit since they
social, political and economic factors. For example, could not cope up with the stress of work. Thus, Henry
colonisation stimulated new investment and Ford paid high wages to the workers who do that
improvements in transport system. monotonous tasks, but recovered this cost through
!
Faster railways, lighter wagon and large refrigerated ships faster production. Due to this mass production, car
helped move food more cheaply and quickly from production in the US hiked from 2 million in 1919 to
America, Australia or New Zealand to final markets in more than 5 million in 1929.
different European countries. 4. Why the year 1929 known as the Great
!
The reduced shipping costs lowered meat prices in Depression? Explain the main factors responsible
Europe. The poor in Europe could consume a more varied for the Great Depression.
diet which included meat, butter and eggs.
Or Explain the causes of Great Depression. (NCERT)
!
Better living condition in Europe as a result of technology
Ans. The year of 1929 came to be known as the Great
promoted social peace within the country and people
Depression because during this period most parts of the
started to support the policies of imperialism.
world experienced catastrophic declines in production,
2. Describe the condition of indentured labour that employment, income and trade.
migrated from India during the nineteenth century. The Great Depression was caused by several factors
Ans. The condition of indentured labour that migrated from which were
India during the 19th century was !
Many countries financed their investments through
!
The conditions of these workers were very bad and their loans from the US. In the early 1920s, the economy of
wages were extremely low. the US was strong. But the over production in
!
Agents tempted the prospective migrants by providing industrial and agricultural sectors led to the
false information about final destinations. They did not tell depression.
them about the harsh modes of travel, the nature of the !
There was a sudden growth in the purchase of
work and living and working conditions. refrigerators, washing machines, radios, gramophone
!
There was long working hours for the labourers and players, etc through hire-purchase. With the fall in
children who were more than the age of five years were prices and the prospect of depression, US banks
also expected to work with their parents. slashed domestic lending and called back loans.
!
The indenture labour was nothing but a ‘new system of !
Farms could not sell their harvests, households were
slavery’. On arrival of the working place the labourers ruined and business collapsed. The consumerist
found completely different environment which they prosperity of 1920s disappeared.
imagined. !
As a result of falling incomes, many households could
!
Sometimes the labourers could not finish the work which not repay what they had borrowed. They even were
they were allotted. If they could not complete it, they forced to give up their homes, cars and other
were prosecuted and sent to jail. consumer durables.
!
Their wages were deducted if their works were 5. Explain the impact of the Great Depression on
considered to be unsatisfactory. Many tried to escape, but India during the early twentieth century.
if they caught, they faced severe punishment. (CBSE 2020)
3. How did Henry Ford revolutionise mass production Ans. The impact of the Great Depression on India during
in the US? Explain. the early twentieth century was
Ans. Henry Ford revolutionise mass production by adopting the !
The depression immediately affected Indian trade.
assembly line of a Chicago slaughterhouse to his new car India’s exports and imports nearly halved between
plant in Detroit. The assembly line allowed a faster and 1928 and 1934. As international prices crashed, prices
cheaper way of producing vehicles. It forced workers to in India also plunged. Between 1928 and 1934 wheat
repeat a single task mechanically and continuously which is prices in India fell by 50 per cent.
dictated by the conveyor belt. This increased their !
Peasants and farmers suffered more than urban dwellers.
efficiency in the single task and the speed of production Agricultural prices fall sharply, but the colonial
too. government refused to reduce revenue demands.
As a result, Henry Ford’s cars came off the assembly line at !
Peasants producing for the world market were the
three-minute intervals. However, standing in front of the worst hit. As gunny exports collapsed, the price of raw
conveyor belt, no worker could delay the motion or take a jute crashed more than 60 per cent.
CBSE Term II Social Science X 31

!
Peasants who borrowed in the hope at better times or to Ans. NIEO is the New International Economic Order. It was
increase output in the hope of higher income suffered a a set of proposal put forward during the 1970’s by the
lot. developing countries with the following objectives
!
Across India, peasants’ indebtedness increased. Jute !
To revise the international economic system in favour
producers fell deeper and deeper into debt. They used of the developing countries.
up their savings, mortgaged lands and sold their !
These countries wanted to set up a system under which
valuables like jewellery to meet their expenses. they could get fairer prices for raw materials and better
6. Explain what is referred to as the G-77, countries. access for their manufactured goods in the developed
In what ways can G-77 be seen as a reaction to the countries markets, etc.
activities of the Bretton Woods twins? (NCERT) Source B Indentured labour Migration from India
Ans. The G-77 is a coalition of developing nations. Recruitment was done by agents engaged by
They have demanded a New International Economic employers and paid a small commission. Many
Order (NIEO) in which they have a real control over their migrants agreed to take up work hoping to escape
natural resources. poverty or oppression in their home villages. Agents
By NIEO, they got more development assistance and
also tempted the prospective migrants by providing
fairer prices for raw materials, and better access to the
false information about final destinations, modes of
markets in developed countries for their manufactured
travel, the nature of the work and living and
goods.
working conditions. Often migrants were not even
told that they were to embark on a long sea voyage.
G-77 was seen as a reaction to the activities of the Bretton
Sometimes agents even forcibly abducted less
Woods twins because the Bretton Woods twins, IMF and
willing migrants.
World Bank were mainly setup to favour the developed
nations. As a result most developing countries did not (ii) How were the indentured workers exploited by the
benefit from the fast growth that the Western economics recruiting agents?
experienced in the 1950s and 1960s. So, they organised Ans. Recruiting agents exploited indentured workers by
themselves as a group-the group of 77 of G-77 to demand providing them false information about final destination,
a new economic order. modes of travel, the nature of work and living and
The developing nations organised themselves into G-77 so working conditions. Sometimes agent even forcibly
as to gain real control over their natural resources. They captured less willing migrants.
also wanted a better opportunity for their manufactured Source C The Great Depression
goods in the markets of developed nations. The Great Depression began around 1929 and lasted
till the mid-1930s. During this period, most parts of
!
Case Based Questions the world experienced catastrophic declines in
1. Read the given case/source and answer the production, employment, incomes and trade. The
following questions. exact timing and impact of the depression varied
across countries.
Source A Decolonisation and Independence
But in general, agricultural regions and communities
At the same time, most developing countries did not were the worst affected. This was because the fall in
benefit from the fast growth the Western economies agricultural prices was greater and more prolonged
experienced in the 1950s and 1960s. Therefore, they than that in the prices of industrial goods.
organised themselves as a group i.e. the Group of 77
(iii) Which factors was responsible for the Great Depression
(or G-77) to demand a New International Economic
in 1929?
Order (NIEO). By the NIEO they meant a system that
would give them real control over their natural Ans. The main factor responsible for the depression in 1929
resources, more development assistance, fairer prices was agricultural overproduction. This decreased the
for raw materials and better access for their prices of agricultural products. To handle this situation,
manufactured goods in developed countries’ markets. farmers tried to expand production by bringing a larger
volume of produce to the market. But this further
(i) What is NIEO? Explain the objectives of developing decreased the price of agricultural products.
countries.
32 CBSE Term II Social Science X

2. Read the given case/source and answer the exchange rate. The dollar itself was anchored to gold at
following questions. a fixed price of $35 per ounce of gold.
The Bretton Woods conference established the (i) Which institutions were established by the Bretton
International Monetary Fund (IMF) to deal with Woods conference ? Why the International
external surpluses and deficits of its member nations. Monetary Fund (IMF) was set up?
The International Bank for Reconstruction and (ii) What was the Bretton Woods system?
Development (popularly known as the World Bank) (iii) What decision was taken at Bretton Woods in New
was set up to finance post-war reconstruction: The Hampshire, USA?
IMF and the World Bank are referred to as the Ans. (i) International Monetary Fund and the International
Bretton Woods institutions or sometimes the Bretton Bank for Reconstruction and Development, popularly
Woods twins. The post-war international economic known as World Bank were established by the Bretton
system is also often described as the Bretton Woods Woods Conference.
system. The IMF and the World Bank commenced
financial operations in 1947. The IMF was set up to promote International
Monetary Cooperation.
Decision- making in these institutions is controlled
(ii) The Bretton Woods System was a system based on
by the Western industrial powers. The US has an
fixed exchange rates. In this system, national
effective right of veto over key IMF and World Bank
currencies i.e. the Indian rupees were pegged to the
decisions.
dollar at a fixed exchange rate.
The international monetary system is the system
(iii) In Bretton Woods Conference New Hampshire USA,
linking national currencies and monetary system. The
decision was taken for establishing World Bank and
Bretton Woods system was based on fixed exchange
International Monetary Fund (IMF) to preserve
rates. In this system, national currencies, e.g., the
Global economical stability and full employment in
Indian rupee, were pegged to the dollar at a fixed
the industrial world.
Chapter Test
Objective Questions
1. Which of our common foods were not known to our ancestors until about 5 centuries ago?
(a) Sweet potatoes (b) Groundnut and maize
(c) Soya, chillies and tomatoes (d) All of these
2. Where animals are not slaughtered for food at the starting point?
(a) America (b) Australia (c) New Zealand (d) Europe
3. Which of the following statements is associated with IMF ?
(a) The Bretton Woods Conference established the IMF.
(b) The conference was held in May 1945.
(c) The IMF and the World Bank commenced financial operation in 1948.
(d) The conference was held at Bretton Woods in New Hampshire, UK.
4. Find the incorrect statement.
(a) The Great Depression began around 1939 and lasted till the mid 1980s.
(b) The system of indentured labour was abolished in 1921.
(c) Rinderpest arrived in Africa in late 1880s.
(d) The First World War fought in 1914-18.
5. Choose the correctly matched pair from the given options.
(a) 1870’s – Rinderpest arrived in Africa (b) 1924 – Indentured Labour Abolished
(c) 1918 – Second World War (d) 1947 – Chinese Communist Revolution

Short Answer Type Questions

Long Answer Type Questions

Answers
1. (d) All of these 2. (d) Europe
3. (a) The Bretton Woods Conference established the IMF. 4. (c) Rinderpest arrived in Africa in late 1880s.
5. (c) 1918 – Second World War