If tax is imposed on Chinese toys, what will happen?a)Chinese toy-make...
Because the money value of Chinese toys are too cheap but the expenditure incurred on indian toy are more and that cause people prefer Chinese toys and when the market of china is banned or using quota and tarrif is import barrier on Chinese goods so the value of this goods rises and people prefer own country good and eradicate unemployment and
If tax is imposed on Chinese toys, what will happen?a)Chinese toy-make...
Impact of Tax on Chinese Toys
Introduction:
The imposition of tax on Chinese toys may have significant effects on the toy industry. In this context, we will discuss the possible outcomes of this decision.
Impact on Chinese Toy-Makers:
One possible outcome of this decision is that Chinese toy-makers may benefit. They may be able to increase the price of their toys to compensate for the tax, which will result in higher profits. However, this may not be a guaranteed outcome, as the increased price may make Chinese toys less competitive in the market.
Impact on Indian Toy-Makers:
Another possible outcome is that Indian toy-makers may prosper. The imposition of tax on Chinese toys may make Indian toys more competitive in the market, as they will be relatively cheaper. This will result in higher demand for Indian toys which, in turn, will result in higher profits for Indian toy-makers.
Impact on Chinese Toy Prices:
Contrary to popular belief, the imposition of tax on Chinese toys may not result in higher prices of Chinese toys. Chinese toy-makers may choose to absorb the tax themselves, rather than increasing the prices of their toys. This will result in lower profits for the Chinese toy-makers, but it will also mean that Chinese toys will remain cheap.
Impact on Indian Consumers:
Lastly, Indian consumers may buy more Chinese toys, despite the tax. This is because Chinese toys are often more popular and better quality than Indian toys. The imposition of tax may not deter Indian consumers from buying Chinese toys, as they may still be cheaper than Indian toys.
Conclusion:
In conclusion, the imposition of tax on Chinese toys may have various outcomes, including the benefit of Chinese toy-makers, the prosperity of Indian toy-makers, the maintenance of cheap Chinese toys, and no effect on Indian consumers. These outcomes may be influenced by other factors such as quality, popularity, and availability of toys.
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