Practicing Success

Target Exam

CUET

Subject

Geography

Chapter

Fundamentals of Human Geography: International Trade

Question:

By supporting developing countries in setting up of capital intensive industries, the industrial nations ensure _________.

Options:

Their monopoly

Markets for their finished products

Export of minerals from developing countries

Human welfare and ecological balance

Correct Answer:

Markets for their finished products

Explanation:

The correct answer is Option (2) → Markets for their finished products.

Extent of foreign investment: Foreign investment can boost trade in developing countries which lack in capital required for the development of mining, oil drilling, heavy engineering, lumbering and plantation agriculture. By developing such capital intensive industries in developing countries, the industrial nations ensure import of food stuffs, minerals and create markets for their finished products. This entire cycle steps up the volume of trade between nations.