Explain the Three Types of Movements or Flows Within International Economic Exchange. Mention Any One Example of Any One Type of Flow From India and One From England.

There were three types of movements or flows noticed by the economist in the international market.

  1. Flow of trade in which there was large scale trade of goods such as clothes and food stuffs.
  2. Flow of labour in which the people migrated from one place to another in large numbers in search of employment.
  3. Flow of capital in which capital moved over long distances for short term or long term investments.

Railways, ports, harbours and settlements were developed in America and Australia for the smooth supply of food stuffs and for the industrial raw materials. All this required capital and labour which flowed from the financial centres such as London. During this period, around 50 million people migrated from Europe to America and Australia and around 150 million people migrated all over the world in search of their better future.

The indentured labourers were hired from India (Uttar Pradesh, Bihar, central India and dry districts of Tamilnadu) for a period of five years to work on plantations.

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