Chapter 4

NCERT
Class 10
Economics
Solutions
3. In recent years China has been importing steel from India. Explain how the import of steel by China will affect.

Question:

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) Good quality steel from India will be readily available to Chinese steel companies as soon as there is sufficient demand. Secondly, due to its proximity to China, the transportation cost will also come down.

(b) Due to the increase in demand for steel abroad, its supply in the country will decrease. Secondly, India will have to make continuous efforts to increase capital investment in the steel sector, modernize technology level, increase labor force, improve quality and reduce production cost.

(c) The raw material will be readily and easily available in China to the industries purchasing steel for the production of other industrial goods in China. This will increase the total industrial production of China.

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