Name: Liberalisation Entails Removing Trade Barriers
Uploaded: 2019-07-19
Duration: 4 min 53 s
Description: Liberalisation is an economic practice that allows countries to trade freely. Watch this video to see why this idea was so appealing to the Indian government.

Question

How has the import of Chinese toys in India affected the consumers and local producers?

Accepted Answer

The arrival of Chinese toys in India has affected the consumers and local producers in different ways. For the buyers (consumers), it provides the option of choosing between Indian and Chinese toys. They have a greater choice of toys and at lower prices. Today, the choice is not limited to just toys, many other items were available in Indian markets, and those had been Made in China.

But the local producers are at a loss because of the import of Chinese toys. Indian Producers have to compete with the Chinese producers. Even though this competition has resulted in the improved standards of the goods produced at a lower price, Indian producers are having a tough time competing in the market. This is because Chinese toys are far better in terms of production cost and designs.

Thus, the import of Chinese toys has enabled the buyers to have a wider choice at lower prices. The Chinese toy manufacturers also acquire an opportunity to expand their production. But the producers in India face losses, and many are shutting down their production.

How has the import of Chinese toys in India affected the consumers and local producers?

Important Questions on Globalization and The Indian Economy

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