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.
(a) Steel supply in China will increase. The Chinese Steel companies will have to compete with Indian companies.
(b) Steel companies in India have a new market available, they will be able to expand production to meet the Chinese market’s demands in addition to the Indian market. They will also 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.