Social Sciences, asked by Anonymous, 1 year ago

Why Indian govt. cant Take Tax from Chinese Toys

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Answered by Anonymous
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If Government of India puts heavy tax on import of Chinese Toys it will have the following consequences:

a. The Chinese toys would become costlier to the customers in India.
b. It will reduce the market share and demand for Chinese toys.
c. It will benefit the domestic producers who will try to capture the larger share of domestic market.
d. The Chinese government may also impose trade barriers on some products from India.
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