CBSE BOARD X, asked by Rudhraa, 1 year ago

Answer this question... Tax on import is one type of trade barrier but government could also plays a limit on the number of goods that can be imported. This is known as quotas.. can you explain using the example of Chinese toys how quotas can be used as a trade...barrier do you think they should be used...NO SPAM...

Answers

Answered by Jiyaa1
119
Yes quotas can be used as trade barriers. If government regulates the import of chinese toys in the markets then this could improve the condition of local manufacturers as it became worse when chinese toys flooded the indian markets.
Due to low cost and new designs of chinese toys , traders were involved in their import as they were highly demanded and due to this the economic condition of large number of local producers worsened. But quotas can help to improve them and therefore they should be used.
Answered by versa22
67
as we know earliers when indian industries were growing there was a trade barrier being put up to enhance the growth of indian goods and shops.

therefore from following example we can say that that trade barrier is a necessary thing for the growth of industries

in case of chinese toys,since they have variety of designs and are available in cheap prices than the indian toys people are attracted towards it. putting taxes on the toys helps the indian economy to get profitised and acts like a trade barrier fro which indian merchants can grow well


versa22: thanks dear
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