Daily Prelims Notes 16 September 2024
Daily Prelims Notes
16 September 2024
Table Of Contents
- New research rescues the dodo’s reputation from confusion and myth
- Will Turkey’s bid to join BRICS speed up EU accession?
- India sends supplies to typhoon-hit Laos, Myanmar, Vietnam
- Understanding China’s Carbon Market and Its Mechanisms
- Lab-Grown Diamonds: The Resilient Alternative to Natural Stones
- Understanding AM, FM, and Signal Modulation: Key Concepts for Communication
- Margin trading books of brokers zoom amid bull run
1. New research rescues the dodo’s reputation from confusion and myth
Sub: Env
Sec: Species in news
The Dodo: Extinct bird species:
New Findings:
- A team of researchers from the Oxford University Museum of Natural History, and the Natural History Museum reviewed 400 years of papers on dodos and its sister species, the solitaire, and also examined the only existing soft tissue from the dodo.
- They found evidence suggesting dodos were actually fast-moving, well-adapted forest birds.
- The extinction of dodos wasn’t due to their supposed stupidity, but human actions and introduced species.
| Birds | Dodo | Solitaire |
| Scientific name | Raphuscucullatus
| Pezophaps solitaria
|
| Description |
|
|
| Habitat |
| Endemic to Rodrigues in the Indian Ocean |
| Diet |
| Primarily ate fruit and seeds |
| Evolutionary History |
Likely had good running abilities. This ability to run is reflected in the dodo’s anatomy. Birds close their toes with the help of tendons that run through a groove found in a large bone in their leg called the tibiotarsus. Evidence from existing dodo bones suggest the groove housed a tendon as big as the tibiotarsus bone, an anatomical feature seen in contemporary birds that are good runners. |
|
| Discovery and Extinction |
|
|
| Reasons for Extinction |
|
|
| Scientific Importance |
| Provides insights into island bird evolution and rapid extinction processes; Subject of paleontological research |
| New International Project |
|
2. Will Turkey’s bid to join BRICS speed up EU accession?
Sub: IR
Sec: Int Groupings
Context:
- Turkey has decided to officially bid to join BRICS. The country is awaiting approval of its membership, with Turkish officials confirming the application is under consideration.
Reasons for the bid:
- The move is seen as a strategy to gain leverage in Turkey’s EU accession bid.
- Others see it as a balancing act between its relations with the West and Russia.
Implications of the move:
- If Turkey indeed becomes a member of BRICS, often described as a counterbalance to a Western-led global order, it could move further away from joining the European Union (EU) and from deriving benefits of the 27-member bloc’s single market.
- Should Turkey now join the bloc, it would become its first NATO member and EU candidate, potentially complicating ties with the West and raising questions over Turkey’s commitment to the NATO.
Delay in accession to EU:
- Turkey’s accession process started in 2005, but came to a standstill in 2018 over several issues, including EU concerns on curbs on media freedom, executive control over the judiciary and insufficient civilian oversight of the Turkish security forces.
- The EU expects member countries to support democratic values and align with the EU’s Common Foreign and Security Policy.
- In an annual report last year, European parliamentarians concluded that Turkey’s “alignment rate with the EU’s Common foreign and security policy has slipped to an all-time low of 7%.
- EU has made it clear that it would admit Turkey only when the Turkish authorities bring reforms in fundamental freedoms and rule of law in the country.
Eying BRICS a sign of Turkish frustration with EU?
- Some see Turkey’s aim to join the BRICS group as a reaction to its lagging progress in EU accession
- Turkey is also unhappy with the EU for not moving forward on modernization of the customs agreement and on a roadmap for visa liberalization, which could clear the way for Turkey’s citizens to travel visa-free to European countries.
Why Turkey is a necessary ally for the west?
- Turkey has refused to back sanctions against Russia, and instead become a top buyer of Russian crude oil.
- Turkey also supports Hamas, which is classified as a terrorist organization by the EU.
- The US and other NATO allies were unhappy Turkey’s purchase of S400 missile defence systems from Russia in 2017 and again in 2022.
- If Turkey were to become a member of BRICS its credibility within the NATO would further decline.
- However, Turkey’s strategic location between the west and east makes it critical for NATO and US missions in the region.
About BRICS:
- BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China, and South Africa.
- The member countries cooperate on trade and economic expansion and provide a political counterbalance to international institutions dominated by the United States and Europe.
- The first BRIC summit was held in 2009 in Russia.
- In 2010, South Africa formally joined the association making it BRICS.
- During the Sixth BRICS Summit in Fortaleza (2014) the leaders signed the Agreement establishing the New Development Bank (NDB), headquartered in Shanghai.
- Five new members – Egypt, Ethiopia, Iran, Saudi Arabia and UAE were admitted to the grouping in 2024.
- Also, over 20 other countries including Turkey have expressed interest in joining.
3. India sends supplies to typhoon-hit Laos, Myanmar, Vietnam
Sub: IR
Sec: India and world
Context:
- India has extended humanitarian assistance to Laos, Myanmar and Vietnam Typhoon Yagi.
- India has committed $1mn worth of flood relief assistance to Vietnam and $1,00,000 worth of assistance to Laos, the Ministry of External Affairs (MEA) announced.
Operation Sadbhav:
- India launched Operation Sadbhav to provide humanitarian assistance and disaster relief (HADR) to Laos, Myanmar and Vietnam that have been hit by severe flooding caused by Typhoon Yag
Typhoon Yagi:
- Typhoon Yagi, which has been termed the strongest tropical cyclone that has hit Asia in 2024, has displaced millions across South East Asia and caused widespread devastation.
- Yagi started as a tropical storm in the western Philippine Sea and turned into a Category 5 typhoon and made landfall in China’s Hainan province with winds of 223 kmph.
Tropical Cyclones:
- Tropical cyclones are violent storms that originate over oceans in tropical areas and move over to the coastal areas bringing about large-scale destruction due to violent winds, very heavy rainfall and storm surge.
- They are irregular wind movements involving closed circulation of air around a low-pressure centre. This closed air circulation is a result of rapid upward movement of hot air which is subjected to Coriolis force.
- A characteristic feature of tropical cyclones is the eye, a central region of clear skies, warm temperatures, and low atmospheric pressure.
Conditions Favourable for Tropical Cyclone Formation:
- Large sea surface with temperature higher than 27°C.
- Presence of the Coriolis force enough to create a cyclonic vortex.
- Small variations in the vertical wind speed.
- A pre-existing weak low-pressure area or low-level-cyclonic circulation.
- Upper divergence above the sea level system.
Name of Tropical cyclones in different regions:
- Atlantic: Hurricanes
- Western Pacific and South China Sea: Typhoons
- Western Australia: Willy-Willies
- Indian Ocean: Cyclones
Tropical vs Temperate cyclone:
| Tropical Cyclones | Temperate Cyclones | |
| Location | Warm tropical oceans near the equator | Mid-latitudes |
| Formed over | Only sea | Both land and sea |
| Formation | Thermal origin | Frontal origin i.e., they develop from interactions between air masses with different temperatures. |
| Structure | Characterized by a well-defined eye, eye wall, and spiral rain bands. | Do not develop an eye. |
| Wind Speed | Higher wind speeds and causes more damage | Lower wind speeds compared to tropical cyclones. |
| Direction | Move from east to west due to prevailing trade winds. | Move from west to east due to the westerly winds in mid-latitudes. |
| Duration | Usually not more than 7 days | 15 -20 days |
4. Understanding China’s Carbon Market and Its Mechanisms
Sub: Env
Sec: Climate change
Why in News
China is seeking public feedback on a significant plan to include key industries such as cement, steel, and aluminum in its emissions trading scheme (ETS). This expansion is expected by the end of the year and aims to boost market liquidity in the world’s largest greenhouse gas (GHG) emitting nation. This move is pivotal in China’s efforts to curb emissions and transition toward sustainable development.
China’s carbon market is composed of two major systems:
Mandatory Emission Trading System (ETS)
Voluntary Greenhouse Gas Emissions Reduction Market (China Certified Emission Reduction – CCER).
These systems operate independently, but they are connected via a mechanism allowing firms to use voluntary market credits (CCERs) to meet their compliance targets under the ETS.
About The Emission Trading System (ETS):China’s mandatory carbon market, ETS, began operations in July 2021 on the Shanghai Environment and Energy Exchange.
Coverage: Initially, it included over 2,000 major emitters in the power generation sector, each responsible for emissions of at least 26,000 metric tons per year.
Expansion: The ETS will eventually include eight major sectors: power generation, steel, building materials, non-ferrous metals, petrochemicals, chemicals, paper, and civil aviation.
These sectors account for 75% of China’s total emissions.
Mechanism of ETS:Firms receive free certified emission allowances (CEAs) based on industry carbon intensity benchmarks. These benchmarks are set by the government and reduced over time.
If a company’s emissions exceed its quota, it must buy additional CEAs from the market.
Conversely, companies with emissions below their quotas can sell surplus allowances.
Carbon Pricing:Carbon prices in China’s ETS are typically lower than international markets. Prices tend to rise when quota allocations are reduced, driving demand for credits and pushing prices higher.
AboutThe China Certified Emission Reduction (CCER) Market: The CCER is China’s voluntary GHG emission reduction trading market, which was relaunched in January 2023 after being suspended in 2017 due to low trading volumes.
The CCER market allows broader participation and supports key emitters in meeting their targets under the ETS by providing an option to offset 5% of their total emissions with voluntary credits.
The expansion of the mandatory carbon market through the inclusion of new sectors is expected to drive demand for CCERs. This will likely increase trading volumes in the voluntary market and enhance liquidity.
About Global Carbon Markets: Carbon markets allow for buying and selling of carbon emissions with the objective of reducing global emissions.
Carbon markets under international law were first set up under the Kyoto Protocol (1996) and became operational in 2000.
The protocol mandated binding reductions in emissions by developed countries, but not in developing ones, and set up three carbon market instruments:
Emissions trading under which developed countries could trade abatements exceeding their mandates with others which fell short;
Joint Implementation (JI) covering negative carbon generated from individual projects which could be traded between corporates in developed countries;
Clean Development Mechanism (CDM) by which such credits could be generated from projects in developing countries and traded to corporates in developed countries.
Carbon Markets under the Paris Agreement:
The provisions relating to setting up a new carbon market are described in Article 6 of the Paris Agreement.
Article 6.2 enables bilateral arrangements for transfer of emissions reductions.
Article 6.4 is about a wider carbon market in which reductions can be bought and sold by anyone.
Article 6.8 provides for making ‘non-market approaches’ available to countries to achieve targets.
5. Lab-Grown Diamonds: The Resilient Alternative to Natural Stones
Sub: Sci
Sec: Msc
Why in News?
The diamond industry has been facing a significant downturn due to global conflicts and market conditions, leading to a decline in exports of natural diamonds. However, lab-grown diamonds (LGDs) have emerged as a viable alternative, providing economic stability, especially in regions like Surat, India. The lab-grown diamond sector has witnessed substantial growth, helping to mitigate the adverse impacts on the natural diamond industry.
About Lab-Grown Diamonds:
Lab-grown diamonds (LGDs) are created in controlled environments that mimic the natural processes under which natural diamonds form. They share identical chemical, physical, and optical properties with natural diamonds. LGDs are broadly categorized into two types:
A. Simulant Diamonds: Simulant diamonds visually resemble natural diamonds but differ in their chemical and physical makeup. These diamonds are often produced from alternative materials and serve as more affordable substitutes.
Key Features: Chemically different from natural diamonds, though they appear visually similar.
Uses: Used for decorative purposes and as alternatives in jewellery.
Subtypes of Simulant Diamonds:
Diamond Nexus Simulants: Created from carbon mixed with additional elements. These are highly durable and come with a triple lifetime guarantee.
Cubic Zirconia Simulants: Made from zirconium dioxide, these are the least durable and cheapest among simulants.
Moissanite Gemstones: Produced from silicon carbide, these are known for their durability and higher price compared to other simulants. They have a distinct gemstone appearance.
B. Cultured Diamonds: Cultured diamonds are chemically and physically identical to natural diamonds. They are created from scratch in laboratory conditions that simulate the extreme heat and pressure found deep within the Earth’s crust.
Key Features: Similar in chemical and physical properties to natural diamonds.
Uses: Popular in high-end jewellery and scientific applications, particularly because they are marked to differentiate them from natural diamonds.
Methods of Producing Cultured Diamonds:
HPHT (High Pressure High Temperature) Diamonds:
Process: These diamonds are formed under conditions that replicate the natural diamond-creating environment, with diamond seeds placed in high-pressure chambers.
Equipment: Cubic press, split-sphere press, and belt press are used to provide the necessary pressure and temperature.
Applications: Frequently used in industrial tools and high-end jewellery.
CVD (Chemical Vapor Deposition) Diamonds:
Process: Grown from a hydrocarbon gas mixture, this method allows precise control over impurities and large-scale production over various substrates.
Flexibility: Favoured for industrial and research purposes due to its simpler and more flexible nature.
Popularity: Increasingly gaining prominence for industrial applications and laboratory research due to its versatility and ease of process.
| Criteria | Natural Diamonds | Lab-Grown Diamonds |
| Formation Process | Formed over millions of years under high temperature and pressure within the Earth’s mantle. | Created in laboratories by simulating the conditions of diamond formation using methods like HPHT and CVD. |
| Time for Formation | Takes millions to billions of years. | Takes a few weeks to months. |
| Chemical Composition | Pure carbon (C), arranged in a crystal structure. | Identical to natural diamonds (pure carbon). |
| Physical Properties | Extremely hard(10 on Mohs scale), high refractive index. | Same as natural diamonds (identical hardness and optical properties). |
| Appearance | Unique due to natural inclusions and imperfections. | Can be made virtually flawless, with fewer or no inclusions. |
| Environmental Impact | Mining has significant environmental and ecological impacts, including habitat destruction and carbon emissions. | Considered more eco-friendly; no mining required, but energy-intensive production processes. |
| Cost | Expensive due to limited supply and high extraction costs. | Generally, 30-40% cheaper than natural diamonds. |
| Market Perception | Seen as more valuable and prestigious due to rarity and historical significance. | Increasingly accepted, but still viewed as less prestigious in some markets. |
| Traceability | Difficult to trace origin; risk of conflict diamonds (blood diamonds). | Easily traceable due to specific lab production and certification. |
| Uses | Primarily used in jewellery and high-end industrial tools. | Widely used in jewellery, industrial applications (cutting, drilling), and research. |
| Sustainability | Non-renewable resource; finite supply. | Renewable as they can be produced on demand in laboratories. |
| Inscription | Generally not inscribed, though some may carry certification numbers. | Often inscribed with a unique number to indicate it is lab-grown, aiding in authenticity and insurance. |
| Global Markets | Dominated by countries like Russia, Botswana, and Canada. | Leading producers include India (Surat), China, and the USA. |
Lab-Grown Diamond Manufacturing in India
Surat as a Hub: Surat, Gujarat, is a significant center for LGD production, home to manufacturers like Green Lab Diamonds, one of the largest in India. Over 11,000 reactors are used for diamond production, although market conditions have led to some closures.
Manufacturing Process: LGDs are created using the Chemical Vapor Deposition (CVD) process, which is preferred over traditional high-temperature methods. CVD allows for quicker and more cost-effective diamond production, keeping factories operational and workers employed.
Significance of Lab-Grown Diamonds
Environmental Impact: Lab-grown diamonds are considered more environmentally friendly compared to mined diamonds, as they reduce the need for destructive mining practices.
Market Trends: With the global natural diamond industry facing challenges, lab-grown diamonds have been seen as an alternative, with growing acceptance in markets like the U.S., U.K., Europe, and Australia.
Economic Importance: In India, Surat is a key hub for lab-grown diamond production, contributing significantly to exports. The lab-grown diamond industry is also providing employment, especially in times when the natural diamond sector is facing a downturn.
6. Understanding AM, FM, and Signal Modulation: Key Concepts for Communication
Sub: Sci
Sec: Awareness in IT
Why in News
Signal modulation techniques, including AM (Amplitude Modulation), FM (Frequency Modulation), and PM (Phase Modulation), play a crucial role in ensuring efficient communication in modern technologies. With advancements in digital transmission, the relevance of these modulation methods continues to evolve, especially as the world transitions from analog to digital broadcasting.
What is Modulation?
Modulation is a technique used to encode information (voice, video, or data) onto a high-frequency signal, known as a carrier wave, to make it suitable for transmission over long distances. In this process, one or more properties of the carrier wave, such as amplitude, frequency, or phase, are modified based on the incoming message signal. This alteration enables efficient data transmission.
Carrier Wave: A high-frequency signal on which data is superimposed.
Modulating Signal: The message or data signal that alters the carrier wave’s properties.
The modulated signal is transmitted by a transmitter, allowing various forms of data to travel over large distances without significant interference.
Signal Modulation: Signal modulation refers to the process of varying certain properties of a carrier wave—amplitude, frequency, or phase—to encode information. This is fundamental to modern communication technologies, enabling clear transmission of data while managing signal interference.
The Basics of Wave Measurement: To understand modulation, it is essential to comprehend how waves are measured:
Amplitude: The height of the wave, which determines the intensity of the signal (e.g., louder sound or brighter light).
Frequency: The number of wave crests passing a point per second, measured in hertz (Hz). A higher frequency means more crests in a given time.
Wavelength: The distance between successive crests or troughs in a wave, typically measured in meters.
Key Types of Signal Modulation
- Amplitude Modulation (AM)
- Frequency Modulation (FM)
- Phase Modulation (PM)
These methods allow the transmission of information over long distances, making them essential for radio, television, and wireless communication systems.
What is AM (Amplitude Modulation)?
In amplitude modulation (AM), the amplitude of the wave is varied to transmit information. The frequency remains constant while the amplitude fluctuates according to the signal.
Usage: AM is commonly used in radio broadcasting due to its ability to cover long distances. The AM frequency range is between 535 to 1,705 kHz, which allows waves to travel over mountains and buildings, offering extensive coverage.
What is FM (Frequency Modulation)?
In frequency modulation (FM), the frequency of the wave is varied, while the amplitude remains constant. FM encodes information by altering the number of wave crests that pass a point in a given time.
Usage: FM is preferred for its superior sound quality, being less affected by static interference. The FM frequency range is 88 to 108 MHz, and although it provides better sound quality, the shorter wavelength limits transmission to the line of sight.
What is PM (Phase Modulation)?
Phase modulation (PM) involves changing the phase of the wave. Two waves with identical frequencies can have different phases, meaning one starts slightly later than the other.
Advantage: PM is highly resistant to interference and noise, making it ideal for digital communication systems like Wi-Fi. Unlike AM and FM, which modulate amplitude and frequency, PM modifies the timing of the wave’s crests and troughs to convey information.
What is Demodulation?
Demodulation is the reverse process of modulation, where the original message signal is extracted from the modulated carrier wave. A demodulator circuit performs this task, filtering out the high-frequency carrier wave and recovering the original low-frequency message signal.
Demodulator: The circuit used to retrieve the original signal.
AM Demodulation: For amplitude modulation (AM), a low-pass filter is used to isolate the message signal from the high-frequency carrier.
This process is crucial as low-frequency signals, like voice signals, cannot be transmitted over long distances without being modulated onto a high-frequency carrier.
Digital vs. Analog Signals
Analog Transmission: In AM and FM, continuous waves are used to propagate information, which makes them analog transmission methods. Analog signals are used for traditional radio and TV broadcasts.
Digital Transmission: PM is typically used for digital transmission, where information is encoded as discrete values, such as 0s and 1s. Digital signals are essential for modern technologies like the internet and wireless communication systems.
Advantages of Signal Modulation
Efficient Use of Channels: Different modulated signals can coexist on the same medium, such as airwaves or fiber-optic cables, without interfering with each other.
Noise Reduction: Modulation techniques, especially digital ones, help minimize the impact of interference from external sources like lightning.
Transmission Over Long Distances: AM’s ability to transmit low-frequency signals makes it suitable for long-distance communication, whereas FM provides better sound quality over shorter distances.
Advancement in Technology: With declining prices of electronic components, the world is shifting from analog to digital broadcasting, which offers enhanced quality and reliability.
7. Margin trading books of brokers zoom amid bull run
Sub : Eco
Sec: Capital Market
What is margin trader?
Margin trading, a stock market feature, allows investors to purchase more stocks than they can afford. Investors can earn high returns by buying stocks at the marginal price instead of their market price. Your stockbroker will lend you money to buy the stocks, and like any other loan, will charge an interest rate. As an investor, you will have access to larger amounts than the existing funds you possess. Thus, you can leverage your position in the market via securities or cash that allows more significant exposure to the market. Margin trading, sometimes also referred to as leverage trading, has its own set of risks, but it will yield higher returns if you can speculate the market movement correctly.
What are the features of margin trading in India?
- Investors can leverage their position in the stock market against the margin requirement by providing cash or securities as collateral.
- Securities traded through an MTF account are pre-defined by SEBI and the stock exchange.
- Only SEBI authorised brokers are allowed to open an MTF account for investors.
- When market conditions appreciate, the margin from your collateral stock will also increase, thus helping you buy more securities under MTF.
- You can carry forward your positions up to T+ N days, where T is the trading day, and N is the number of days that position can be carried forward. N is determined by individual brokers and will vary for different brokers.
What are the benefits of margin trading?
- Investors who want to increase their position in the market but hold inadequate investment capital can use margin trading. It is an ideal facility to make high profits in a short period.
- When you buy more extensive stocks with a small amount, it amplifies your leverage in the Indian stock market. With increased leverage trading, you can benefit from small market fluctuations.
- When the market is performing well, the margin-traded shares will reap higher returns than the commonly traded shares. That way, you can maximise the returns on your investment.
- Some form of collateral is required for the broker to lend you funds in MTF, for which you can put up your existing shares in your Demat Account as your collateral.
What are some of the margin trade practices to remember?
- Margin trading requires you to be always cautious. If you get high returns, you also can incur high losses. You should not falter at the risks of margin trading and be able to meet margin calls.
- Avoid borrowing the maximum amount from your MTF account. Once you develop an optimistic approach towards the stock market, you can confidently trade marginally.
- The margin amount is the loan that the broker provides; therefore, the loan amount is subject to a compounding interest rate.