ANSWER IN DETAIL-
1>How did the development of means of transport affect tradi in india?
Development of transport facilitate trade in India .Transport services plays an important in growth of trade in India.As transport helps in:-
Due to development in trade India now become one of the fastest growing economies in the world.
- Opening new market opportunities.
- It helps in moving product with speed and efficiency.
- It made possible export and import of products and maintained trade relation between countries.
Due to development in trade India now become one of the fastest growing economies in the world.
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The Economic Importance of TransportationDevelopment is related at improving the welfare of a society through appropriate social, political and economic conditions. The expected outcomes are quantitative and qualitative improvements in human capital (e.g. income and education levels) as well as physical capital such infrastructures (utilities, transport, telecommunications). While in the previous decades, development policies and strategies tended to focus on physical capital, recent years has seen a better balance by including human capital issues. Irrespective of the relative importance of physical versus human capital, development cannot occur without both as infrastructures cannot remain effective without proper operations and maintenance while economic activities cannot take place without an infrastructure base.Because of its intensive use of infrastructures, the transport sector is an important component of the economy and a common tool used for development. This is even more so in a global economy where economic opportunities are increasingly related to the mobility of people, goods and information. A relation between the quantity and quality of transport infrastructure and the level of economic development is apparent. High density transport infrastructure and highly connected networks are commonly associated with high levels of development. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multipliers effects such as better accessibility to markets, employment and additional investments. When transport systems are deficient in terms of capacity or reliability, they can have an economic cost such as reduced or missed opportunities and lower quality of life.At the aggregate level, efficient transportation reduces costs in many economic sectors, while inefficient transportation increases these costs. In addition, the impacts of transportation are not always intended and can have unforeseen or unintended consequences. For instance congestion is often an unintended consequence in the provision of free or low cost transport infrastructure to the users. However, congestion is also the indication of a growing economy where capacity and infrastructure have difficulties keeping up with the rising mobility demands. Transport carries an important social and environmental load, which cannot be neglected. Assessing the economic importance of transportation requires a categorization of the types of impacts it conveys. These involve core (the physical characteristics of transportation), operational and geographical dimensions:
- Core. The most fundamental impacts of transportation relate to the physical capacity to convey passengers and goods and the associated costs to support this mobility. This involves the setting of routes enabling new or existing interactions between economic entities.
- Operational. Improvement in the time performance, notably in terms of reliability, as well as reduced loss or damage. This implies a better utilization level of existing transportation assets benefiting its users as passengers and freight are conveyed more rapidly and with less delays.
- Geographical. Access to a wider market base where economies of scale in production, distribution and consumption can be improved. Increases in productivity from the access to a larger and more diverse base of inputs (raw materials, parts, energy or labor) and broader markets for diverse outputs (intermediate and finished goods). Another important geographical impacts concerns the influence of transport on the location of activities.
- At the macroeconomic level (the importance of transportation for a whole economy), transportation and the mobility it confers are linked to a level of output, employment and income within a national economy. In many developed countries, transportation accounts between 6% and 12% of the GDP.
- At the microeconomic level (the importance of transportation for specific parts of the economy) transportation is linked to producer, consumer and production costs. The importance of specific transport activities and infrastructure can thus be assessed for eachsector of the economy. Usually, higher income levels are associated with a greater share of transportation in consumption expenses. Transportation accounts on average between 10% and 15% of household expenditures, while it accounts around 4% of the costs of each unit of output in manufacturing, but this figure varies greatly according to sub sectors.
- Direct impacts. The outcome of improved capacity and efficiency where transport provides employment, added value, larger markets as well as time and costs improvements. The overall demand of an economy is increasing.
- Indirect impacts. The outcome of improved accessibility and economies of scale. Indirect value-added and jobs are the result of local purchases by companies directly dependent upon transport activity. Transport activities are responsible for a wide range of indirect value-added and employment effects, through the linkages of transport with other economic sectors (e.g. office supply firms, equipment and parts suppliers, maintenance and repair services, insurance companies, consulting and other business services).
- Induced impacts. The outcome of the economic multiplier effects where the price of commodities, goods or services drops and/or their variety increases. For instance, the steel industry requires cost efficient import of iron ore and coal for the blast furnaces and export activities for finished products such as steel booms and coils. Manufacturers and retail outlets and distribution centers handling imported containerized cargo rely on efficient transport and seaport operations.
- Seaports. Linked with the early stages of European expansion from the 16th to the 18th centuries, commonly known as the age of exploration. They supported the early development of international trade through colonial empires, but were constrained by limited inland access. Later in the industrial revolution, many ports became important heavy industrial platforms With globalization and containerization, seaports increased their importance as a support to international trade and global supply chains.
- Rivers and canals. The first stage of the industrial revolution in the late 18th and early 19th centuries was linked with the development of canal systems in Western Europe and North America, mainly to transport heavy goods. This permitted the development of rudimentary and constrained inland distribution systems.
- Railways. The second stage of industrial revolution in the 19th century was linked with the development and implementation of rail systems enabling more flexible and high capacity inland transportation systems. This opened up substantial economic and social opportunities through the extraction of resources, the settlement of regions and the growing mobility of freight and passengers.
- Roads. The 20th century saw the rapid development of comprehensive road transportation systems, such as national highway systems, and of automobile manufacturing as a major economic sector. Individual transportation became widely available to mid income social classes, particularly after the Second World War. This was associated with significant economic opportunities to service industrial and commercial markets with reliable door-to-door deliveries. The automobile also permitted new forms of social opportunities, particularly with suburbanization.
- Airways and information technologies. The second half of the 20th century saw the development of global air and telecommunication networks in conjunction with economic globalization. New organizational and managerial forms became possible, especially in the rapidly developing realm of logistics and supply chain management. Although maritime transportation is the physical lynchpin of globalization, air transportation and IT support the accelerated mobility of passengers, specialized cargoes and their associated information flows.
- High accumulation of existing infrastructure. In a context of high level of accessibility and transportation networks that are already extensive, further investments usually result in marginal improvements. This means that the economic impacts of transport investments tend to be significant when infrastructures were previously lacking and tend to be marginal when an extensive network is already present. Additional investments can thus have limited impact outside convenience.
- Economic changes. As economies develop, their function tends to shift from the primary (resource extraction) and secondary (manufacturing) sectors towards advanced manufacturing, distribution and services. These sectors rely on different transport systems and capabilities. While an economy depending on manufacturing will rely on road, rail and port infrastructures, a service economy is more oriented towards the efficiency of logistics and urban transportation. In all cases transport infrastructure are important, but their relative importance in supporting the economy may shift.
- Clustering. Due to clustering and agglomeration, several locations develop advantages that cannot be readily reversed through improvements in accessibility. Transportation can be a factor of concentration and dispersion depending on the context. Less accessible regions thus do not necessarily benefit from transport investments if they are embedded in a system of unequal relations.
- Timing of the development. The impacts of transportation can precede (lead), occur during (concomitantly) or take place after (lag) economic development. The lag, concomitant and lead impacts make it difficult to separate the specific contributions of transport to development. Each case appears to be specific to a set of timing circumstances that are difficult to replicate elsewhere.
- Types of impacts. They vary considerably as the spectrum ranges from the positive to the negative. Usually transportation investments promote economic development while in rarer cases they may hinder a region by draining its resources in unproductive transportation projects.
- Commodity market. Improvement in the efficiency with which firms have access to raw materials and parts as well as to their respective customers. Thus, transportation expands opportunities to acquire and sell a variety of commodities necessary for industrial and manufacturing systems.
- Labor market. Improvement in the access to labor and a reduction in access costs, mainly by improved commuting (local scale) or the use of lower cost labor (global scale).
- Geographic specialization. Improvements in transportation and communication favor a process of geographical specialization that increases productivity and spatial interactions. An economic entity tends to produce goods and services with the most appropriate combination of capital, labor, and raw materials. A region will thus tend to specialize in the production of goods and services for which it has the greatest advantages (or the least disadvantages) compared to other regions as long as appropriate transport is available for trade. Through geographic specialization supported by efficient transportation, economic productivity is promoted. This process is known in economic theory as comparative advantages.
- Large scale production. An efficient transport system offering cost, time and reliability advantages enables goods to be transported over longer distances. This facilitates mass production through economies of scale because larger markets can be accessed. The concept of “just-in-time” in supply chain management has further expanded the productivity of production and distribution with benefits such as lower inventory levels and better responses to shifting market conditions. Thus, the more efficient transportation becomes, the larger the markets that can be serviced and the larger the scale of production. This results in lower unit costs.
- Increased competition. When transport is efficient, the potential market for a given product (or service) increases, and so does competition. A wider array of goods and services becomes available to consumers through competition which tends to reduce costs and promote quality and innovation. Globalization has clearly been associated with a competitive environment that spans the world and enables consumers to have access to a wider range of goods and services.
- Increased land value. Land which is adjacent or serviced by good transport services generally has greater value due to the utility it confers to many activities. Consumers can have access to a wider range of services and retail goods while residents can have better accessibility to employment, services, and social networks, all of which transcribes in higher land value. In some cases, transportation activities can lower land value, particularly for residential activities. Land located near airports and highways, near noise and pollution sources, will thus be impacted by corresponding diminishing land value.
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