Q. Consider the following statements regarding Virtual Water Trade
1. The virtual water trade is the idea that when goods and services are exchanged, so is virtual water.
2. Countries export water-intensive crops and products and import less water-intensive commodities to increase their water availability
Which of the above statements is/are correct?
The virtual water trade is the idea that when goods and services are exchanged, so is virtual water. When a country imports one tonne of wheat instead of producing it domestically, it is saving about 1,300 cubic meters of real indigenous water.
For instance, water-guzzling activities are getting outsourced for production to other countries. Thus, crops, meat, leather, chemicals, and industrial goods are imported to ensure a positive water balance. For example, Mexico imports maize and in doing so, it saves 12 billion cubic meters per year of its national water resources.
Countries export less water-intensive crops and products and export less water-intensive commodities to increase their water availability
Source: Relation between Agri exports and water stress – Explained, Pointwise
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