What would happen if Government of India puts heavy tax on import of Chinese toys? Explain any three points.
IF the Government of India puts heavy tax on imports of Chinese toys, the result will be:
- The cost of Chinese toys will increase.
- Less Chinese toys would come in the Indian market.
- The Indian buyers would have lesser choice in the market.
- Toys will become more expensive.
- It will give an opportunity to Indian toy makers to expand their business.
- There will be less competition therefore, prices will increase.