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Q.

The relocation of production to two countries affected the world economy. Which are those countries?


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a

India and Japan

b

Japan and China

c

Sri Lanka and China

d

India and China  

answer is D.

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Detailed Solution

  The relocation of production to India and China affected the world economy as both were low-wage countries.
India and China were the wealthiest countries until 18 century and also were supreme in the Asian trade. But from the beginning of the 15 century, China restricted overseas contact and moved into isolation. India, too, lost its richness after its colonisation by the British. The relocation of industries to India and China stimulated world trade and increased capital flows.
 
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