SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Indian toys are selling more
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Indian consumers are buying less
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Indian consumers are getting more choice at cheaper rates
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Chinese consumers are falling short of choice
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Detailed explanation-1: -The Chinese toys are far better in terms of cost of production and designs. Thus the excessive import of toys has enabled the Indian buyers to have a wider choice at lower prices. The Chinese toy makers also acquire an opportunity to expand their production and profits.
Detailed explanation-2: -This will lead to a healthy competition so that the quality of toys will improve. Also, Indian manufacturers will need to earn only reasonable profits. If Chinese toys were totally restricted, Indian manufacturers will be tempted to lower their quality and increase prices, thus harming the customers.
Detailed explanation-3: -Increase in the price of import: A heavy tax will increase the amount that the person who is importing has to pay. He shall pay much higher to import the toys. 2. Increase in market price: When import becomes expensive, the market price will also increase automatically.
Detailed explanation-4: -Chinese toys have taken over the Indian toy market due to globalization and promotion of international trade leading to huge losses to Indian toy manufacturers. Do you think the mantra of “Boycott and Swadeshi” would be of any help today? Why or why not?