ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The virtual water trade (also known as embedded or embodied water) is the hidden flow of water in food or other commodities that are traded from one place to another. The virtual water trade is the idea that when goods and services are exchanged, so is virtual water.

Detailed explanation-2: -People turn on the tap, water comes out and they use it. Indirect water (also called “virtual water”) use refers to the water used to produce the goods and services others need and enjoy. For example, think about the water needed to make a box of cereal so you can enjoy a bowl of corn flakes?

Detailed explanation-3: -Virtual water is the water “hidden” in the products, services and processes people buy and use every day. Virtual water often goes unseen by the end-user of a product or service, but that water has been consumed throughout the value chain, which makes creation of that product or service possible.

Detailed explanation-4: -The water consumed in the production process of an agricultural or industrial product has been called the ‘virtual water’ contained in the product (Allan, 1998). If one country exports a water-intensive product to another country, it exports water in virtual form.

Detailed explanation-5: -Animal products, especially, like meat, dairy and eggs (all of which tend to require more water than fruits, vegetables and beans) have an even higher water footprint. Individually speaking, one’s diet makes up the largest part of one’s personal water footprint.