SOLVED CRQs (Chapter 6)
Q2) To achieve the targets of economic development, it is important to encourage cottage and small scale industries.
Give THREE reasons in the context of Pakistan.
(i) Some specific objects like the footballs of Pakistan are exported which are a great source of increase in foreign
exchange.
(ii) Employment opportunities in far-flung areas are created by these industries.
(iii) Such industry do not need expensive machinery.
(iv) Demand of some specialized goods the hand-woven carpet, embroidered clothing and handcrafted furniture can
only be met by these industries.
(v) These industries reduce regional economic disparity.
Q3) Define the term 'balance of trade"
The difference between country's values of import and values of exports on tangible goods over a specified period.
Q4) Define the term trade' and 'commerce.
Trade: Buying and selling of goods and services between two or more parties with the aim of making profit.
Commerce: it is a broad term which encompasses buying and selling, distribution of goods and services including trade. It
also includes activities such as advertising, marketing, transportation, banking, packaging, branding, and insurance.
Q5) Discuss any THREE factors that should be considered before setting up a factory.
i. Availability of cheap and correct size of land is very important, such land should be opted which contain proper
drainage system.
ii. Access to well managed route as of the sea route which is most important for heavy industry especially. There
should be a manageable distance between site and the market.
iii. Source of sufficient power supply should always be present at site area. Favorable government Polices must
remain under consideration.
Q6) China has heavily invested in the development of Gwadar port project. In what ways can the Gwadar port serve
Chinese interests?
(i) Through Gwadar Port, China can do trade with oil rich countries such as middle east and Gulf countries
(ii) Many professional of China such as engineers, workers and others will get employment, at Gwadar port.
(iii) Through Gawad port's trade China can develop its rural areas and increase economy.
Q7) In contrast to railways, airways are considered as better means of transportation. Explain FIVE reasons to support
this statement.
Airways are better than railways in many ways.
• Airways are faster and efficient than railways.
• Airways provide a wide range of destination with in and out of the country.
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• Airways are the perfect way to deliver confidential information to other countries, as military bases.
• It is constantly being traced and is very secure.
• Very few chances of accidents as compare to railways.
• Airways do not need of constructions of routes as compared to railways.
Q8) Aliya lives in a suburban area of the country, which is famous for various handmade objects. She decided to open
a home unit with the help of the Micro Finance Bank. Her employees were mainly females of that area who are skilled
in the art of handmade objects. Aliya's aim is to sell these artifacts nationally and internationally.
What FOUR benefits can be reaped by Aliya and the families living in that area through this unit?
(i) it can be a source of income for family living in that area which would fulfil their needs to improve their way of living.
(ii) The women could be self-sufficient in such a way that they will not be dependent on the males of a their families
(iii) The regional employment rate will rise and the labour force increase because of such industry.
(iv) Better lifestyle with proper education would be promoted. Women will be working and more income will be coming
in.
Q10) International trade is considered vitally important for the growth of developing countries. Discuss importance of
international trade for the economic development of Pakistan.
(i) Exports of goods and services earn foreign exchange of a country.
(ii) Trade and commerce activities open up new market places where goods can be sold out.
(iii) Increase in trade volume increases production, which results in lowering of cost for local consumers.
(iv) Trade activities set the direction where one country increases, its production of specific goods where they have an
advantages.
(v) Trade activities results Increase in country's wealth
(vi) It also results in reduction of poverty.
Q11) Economic disparity in Pakistan is one of the main problems that hinders national cohesion and integration.
Describe any FOUR of the following reasons behind economic disparity in Pakistan.
• income
• Labor market outcomes
• Taxation
• Education
• Globalization
• Gender discrimination
• Development
• Ethnic discrimination
• Inadequate mobilization and poor allocation of resources
(i) Gender Discrimination: In some areas males are given superiority over women, they are allowed to do anything,
women are not sent to schools.
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(ii) Education:
Poor people in the country cannot afford to study in a school, that is why they stay illiterate and poor.
(iii) Development:
Because of the political situation of Pakistan, economy is not growing and so there is no proper distribution of wealth.
(iv) Taxation:
High rate of taxes is causing economic disparity because the middle class paying so much tax and getting nothing in
return.
Q12) Describe any FIVE benefits that Pakistan can reap through the development of Gwadar Port.
(i) Gwadar port can serve as a central port for central Asian land lock countries.
(ii) It can be a source of revenue generation for Pakistan.
(iii) It can the boost the shipping industry of Pakistan
(iv) The ship breaking industry at Gwadar is also beneficial for Pakistan.
(v) Pakistan can receive transit fee from Afghanistan.
(vi) Gwadar port would increase relationship between China and Pakistan. It also gives boost to trade.
Q13) Classify each of the given disadvantages in terms of road and railway transportation.
(Note: The first disadvantage has been identified for your assistance.)
[Link] Disadvantage of Transport Identification
1 This transportation contributes more towards environmental pollution. Road Transport
This transportation is particularly unsafe for carrying fragile items like
2 glass because these items can easily break at times during unexpected Road Transport
halts.
This transport is not suitable to carry bulky and heavy goods, such as
3 Railway Transport
heavy machinery
This transport does not provide greater access to all the regions,
4 Railway Transport
This transport has a limited carrying capacity
5 Road Transport
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Q14) Walls - a brand under Unilever Pakistan - was launched in Pakistan in 1995 by setting up its Own factory. Today
its market share is 35-40% of the total ice cream market.
(i) Analyze the contribution of the above-mentioned multi-national company towards Pakistan.
1) Provides employment opportunities to people of Pakistan
2) Its production also meets local demands of Pakistan i.e. walls ice cream is available to Pakistan with no extra charges,
which would be impossible if it was to import.
3) It helps in Pakistan’s GDP to grow and ultimately it becomes one of the reasons of economic development of Pakistan.
(ii) Give any TWO benefits of trade for economic development of a country.
• Trade is a source of increase in foreign exchange reserves.
• trade lead to faster productivity growth.
• trade also increases a Country's GDP which develops economy.
Q15) Do you think Gwadar port will bring economic development to the region of Baluchistan? Justify your answer by
providing any TWO reasons.
• Gwadar port has the potential to become a hub of commercial activities in Asia.
• It will attract local and foreign investors to setup industries and hence an industrial zone will be offer several jobs
and self-employment opportunity to people.
• The development of the port will lead the government of Baluchistan earning transit revenue and will result in the
development of roads, buildings, educational institutes etc. so, it would offer a better standard of living for the
people of Baluchistan.
Q16) Ahad exports in life saving drugs. He has to export these drugs in a short span of time from Pakistan to Sudan,
Africa.
In your opinion, which mode of transportation should he prefer? Support your answer with FIVE merits of
transportation.
He should prefer Airways because:
(i) As he wants to deliver /export the medicine in short span of time then airways is the fastest mode of transportation.
(ii) Quality of drugs would remain good as new and fresh. The drugs context would also be same due to very less time of
transport.
(iii) Cost effective mode of transport because medicines and drugs are light weight, he can send them in bulk quantity
without extra charges.
(iv) It is the safest mode because the boxes and cartons of drugs are untouched once loaded on the plane.
(v) it he chooses seaways; the bay of Africa is famous for pirates. The most effective way is airways for his export.
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