How will the import of steel from India into the Chinese markets lead to integration of markets for steel in the two countries? Explain.
Integration of markets for steel in the two countries will take place as follows
(i) Due to imports from India, choice in the Chinese market will increase.
(ii) Producers of steel in India will be able to sell steel not only in India but can also compete in the Chinese market.
(iii) Prices of similar varieties of steel in the Indian and Chinese markets will fluctuate and tend to become equal after some time.