How does tourism act as a form of trade? Name any two types of tourism for which foreign tourists visit India.
Generated by claude-sonnet-4-6 · 2026-06-26 13:34 · grounding rag
Model Answer
Tourism acts as a form of trade because foreign tourists spend money on services like transport, accommodation, and local handicrafts, bringing in foreign exchange to the country — similar to how exports earn revenue.
Two types of tourism for which foreign tourists visit India:
- Heritage tourism
- Eco tourism
Source: Tourism as a Trade, Chapter 7
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Explanation
- The question has two parts: why tourism = trade, and two types of tourism. Address both clearly.
- The key economic concept examiners want is foreign exchange earnings — this links tourism to trade.
- Any two from the list in the passage are acceptable: heritage, eco, adventure, cultural, medical, or business tourism.
- Keep it concise — this is 2 marks, so one sentence of explanation + two named types is sufficient.