How will import of steel from India into the Chinese markets lead to integration of markets for steel in the towo countries? explain with 3 points.
Answers
import of steel from India into the Chinese markets lead to integration of markets for steel in the towo countries because:-
(a) Due to imports from India, choice in the Chinese market will increase.
(b) Producers of steel in both countries will compete with each other to get increased market share.
(c) Prices of similar varieties of steel in the Indian and Chinese markets will fluctuate and tend to become equal after some time.
ɪᴍᴘᴏʀᴛ ᴏғ sᴛᴇᴇʟ ғʀᴏᴍ ɪɴᴅɪᴀ ɪɴᴛᴏ ᴄʜɪɴᴀ ᴡɪʟʟ ʟᴇᴀᴅ ᴛᴏ ɪɴᴛᴇɢʀᴀᴛɪᴏɴ ᴏғ ᴍᴀʀᴋᴇᴛs ᴏғ ʙᴏᴛʜ ᴄᴏᴜɴᴛʀɪᴇs ɪɴ ᴛʜᴇ ғᴏʟʟᴏᴡɪɴɢ ᴡᴀʏs:
ɪ) ɪᴛ ᴡᴏᴜʟᴅ ᴄʀᴇᴀᴛᴇ ᴀ ғᴀᴠᴏᴜʀᴀʙʟᴇ ʙᴀʟᴀɴᴄᴇ ᴏғ ᴘᴀʏᴍᴇɴᴛs sɪᴛᴜᴀᴛɪᴏɴ ғᴏʀ ɪɴᴅɪᴀ ᴡʜɪᴄʜ ᴄʜɪɴᴀ ᴡᴏᴜʟᴅ ᴄᴏʀʀᴇᴄᴛ ʙʏ ᴇxᴘᴏʀᴛɪɴɢ ɢᴏᴏᴅs ᴍᴀɴᴜғᴀᴄᴛᴜʀᴇᴅ ɪɴ ɪᴛs ᴏᴡɴ ᴄᴏᴜɴᴛʀʏ.
ɪɪ) ɪᴛ ᴡᴏᴜʟᴅ ʟɪɴᴋ ᴍᴀɴᴜғᴀᴄᴛᴜʀɪɴɢ ᴘʀᴏᴄᴇssᴇs ᴏғ ʜᴇᴀᴠʏ ɪɴᴅᴜsᴛʀɪᴇs ɪɴ ʙᴏᴛʜ ᴄᴏᴜɴᴛʀɪᴇs ᴛʜᴀᴛ ᴀʀᴇ ᴅᴇᴘᴇɴᴅᴇɴᴛ ᴏɴ ɪʀᴏɴ ᴀɴᴅ sᴛᴇᴇʟ.
ɪɪɪ) ɪᴛ ᴡᴏᴜʟᴅ ʟᴇᴀᴅ ᴛᴏ ɪɴғʀᴀsᴛʀᴜᴄᴛᴜʀᴀʟ ᴅᴇᴠᴇʟᴏᴘᴍᴇɴᴛs ɪɴ ʙᴏᴛʜ ᴄᴏᴜɴᴛʀɪᴇs ᴛᴏ ᴍᴇᴇᴛ ᴜᴘ ᴡɪᴛʜ ᴛʜᴇ ᴅᴇᴍᴀɴᴅ. ᴛʜɪs ᴡᴏᴜʟᴅ ʟᴇᴀᴅ ᴛᴏ ᴄʀᴇᴀᴛɪᴏɴ ᴏғ ᴇᴍᴘʟᴏʏᴍᴇɴᴛ ᴏᴘᴘᴏʀᴛᴜɴɪᴛɪᴇs ᴀɴᴅ ɢᴇɴᴇʀᴀᴛᴇ ɪɴᴠᴇsᴛᴍᴇɴᴛ