Explain the three types of movements or flows within international economic exchange.Find one example of each type of flow which involved India and Indians, and write a short account of it.

Hi,

There were three types of movement or ‘flows’ within international economic exchanges as identified by the economists: 

  • The first is the flow of trade which in the nineteenth century referred largely to trade in goods (e.g., cloth or wheat). 
  • The second is the flow of labour – the migration of people in search of employment. 
  • The third is the movement of capital for short-term or long-term investments over long distances.

An account of the second type of flow is being given, that involved Indians and India:

Flow of labour

  • Indentured labour migration from India was a tale of faster economic growth as well as great misery, higher incomes for some and poverty for others, technological advances in some areas and new forms of coercion in others. 
  • Hundreds of thousands of Indian and Chinese 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 Uttar Pradesh, Bihar, central India and the dry districts of Tamil Nadu. 
  • Decline in cottage industries , rise in land rents, clearance of lands for mines and plantations affected the lives of the poor: they failed to pay their rents, became deeply indebted and were forced to migrate in search of work

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