Q1. [3] § International Trade § Tourism as a Trade
Why do we call Tourism as a Trade ? Explain.
Previously asked in CBSE board exam
2023 32/6/1 Q26(a)
Generated by claude-sonnet-4-6 · 2026-06-15 07:05 · grounding rag
Model Answer
Tourism is called a trade because it involves the exchange of services that earn foreign exchange for the country, similar to how goods are exported.
- Foreign tourists visiting India spend money on services like transport, accommodation, food, and handicrafts — this acts as an invisible export.
- It earns valuable foreign exchange, improving India's balance of trade.
- It promotes local handicrafts, cultural pursuits, and supports livelihoods, contributing to economic prosperity.
- Types like heritage tourism, eco-tourism, medical tourism, and adventure tourism attract international visitors, making it a significant component of international trade in services.
Source: Tourism as a Trade, Chapter 7
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Explanation
- Examiners expect students to connect tourism with trade by explaining the concept of invisible export and foreign exchange earnings — this is the core logic.
- Mention at least 2–3 types of tourism from the passage to show textbook grounding.
- Avoid writing a long essay; 4 crisp points are sufficient for 3 marks.
- The key phrase to use: "tourism earns foreign exchange and is therefore treated as a trade in services."
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