Choose the given statement is True/False

In recent years China has been importing steel from India. It will affect the industries buying steel to produce other industrial goods in China.

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True

False

answer is B.

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Detailed Solution

The given statement is false.
In recent years China has been importing steel from India. It won't impact businesses that acquire steel to make other industrial products in China. The Chinese steel industry will not gain from the increasing imports of steel. Steel will be inexpensively priced, similar to the battle between imports from India and domestic production. The Indian companies will not be affected by the import of steel as this will only enhance their sales and revenues. Indian companies altogether benefitted from the imports. They also have to produce steel of higher quality to maintain the competition in China, along with increasing their production. They have to enhance the quantity exported, which will only result in less demand. This less demand will only create a reduction in the prices of steel. It might make more demand in the Indian markets because a large amount of steel is imported.
Thus, the correct statement would be that It will not affect the industries buying steel to produce other industrial goods in China.

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