What would happen if Government of India puts a heavy tax on import of Chinese toys ? Explain any three points. -SST 10th

What would happen if Government of India puts a heavy tax on import of Chinese toys ? Explain any three points. -SST 10th
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Answer :

If Govt. of India puts a heavy tax on import of Chinese toys then: 1. Increase in the price of import: A heavy tax will increase the amount that the person who is importing has to pay. He shall pay much higher to import the toys.  2. Increase in market price: When import becomes expensive, the market price will also increase automatically. People will then prefer cheaper Indian toys. 3. Reduction in imports: When demand of Chinese toys goes down because of high price, imports will also automatically decrease. This would benefit Indian toy manufacturers.
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