The three types of movements or flows in international economic exchange are
(i) Flow of trade: This refers to trade in tangible goods like wheat, cotton etc. Historically, fine cotton cloth was produced in India by weavers and exported to European countries, but when the industrial revolution started in Europe and the European countries imposed tariffbarriers, the export of textiles dropped drastically. In fact, India started exporting raw cotton and importing mill made cloth from England.
(ii) Flow of labour: This refers to migration of people in search of employment. During the 19 th century, a large number of Indian labourers migrated to Africa, the West Indies and other countries to work on plagtations and in mines as well as in. railway and road construction projects set-up by the Europeans.These Indians settled in the countries where they had gone after their contracts ended and now their descendants are found in these countries.
(iii) Flow of capital :This refers to movement of capital over long distances for short-term and long-term investments. Groups of Indian financers, traders like the Shroffs, Chettiars, etc financed agriculture and plantations, in various Asian and African countries using their own funds or those borrowed from European banks.