In recent years China has been importing steel from India. Explain how the import of steel by China will affect. (a) Steel companies in China. (b) Steel companies in India. (c) Industries buying steel for production of other industrial goods in China.

Q.:- In recent years China has been importing steel from India. Explain how the import of steel by China will affect.
(a) Steel companies in China.
(b) Steel companies in India.
(c) Industries buying steel for production of other industrial goods in China.

 

Answer:-

(a) Steel supply in China will improve. Steel companies in China will face a stiff challenge from Indian companies.

(b) Steel companies in India will expand their production to compete with China. They will have to improve their quality, reduce the cost of production and try to capture the Chinese market.
(c) Other Chinese industries using steel will be benefitted as they will have a greater choice at lower prices.