Social Science (087) — AI-generated practice question

International trade is called the economic barometer of a country because its advancement serves as an index of a country's economic prosperity. A high volume of trade — especially a favourable balance of trade (exports exceeding imports) — signals a strong, productive economy.

India's emergence as a software giant has redefined traditional exports. Conventionally, countries exported physical commodities like gems, jewellery, or agricultural products. India now earns large foreign exchange through the export of information technology, proving that services and knowledge-based products are equally significant exports in modern international trade.

Source: International Trade, Chapter 7

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• The phrase "economic barometer" is directly from the textbook — use it and explain it briefly.
• The examiner expects two distinct points: (1) what the barometer analogy means, and (2) India's IT exports as a shift in the nature of exports (intangible services vs. tangible goods).
• Don't over-expand; 3 marks = ~3 clear ideas, tightly written.