Question

China is a major producer of electronic goods at very low cost as compared to India. Discuss the benefits that India will derive if it enters into a trade agreement with China for electronic goods.

Answer 1

Benefits to India if it enters into trade agreement with china are as follows:

1. International business with China will help India to earn foreign exchange which it can later use for meeting its imports of other goods.

2. Exporting and flourishing in International trade with China will help in improving growth prospects and created opportunities for employment of people.

3. Due to International business with China, people in world community are able to consume and enjoy a higher standard of living.