if consumers in canada increase their demand for products that are manufactured in india, which of the following will occur?
If consumers in Canada increase their demand for products that are manufactured in India, which of the following will occur?
Answer:
If consumers in Canada increase their demand for products that are manufactured in India, several outcomes are likely to happen:
1. Increase in Imports: With the rise in demand for products manufactured in India, Canada will likely have to increase its imports from India to meet the consumer demands. This can lead to a higher volume of goods being imported into Canada.
2. Trade Balance Impact: The increased demand for Indian products may affect Canada’s trade balance with India. If the imports from India surpass Canada’s exports to India, it can potentially widen the trade deficit between the two countries.
3. Economic Ties: A surge in demand for Indian products can strengthen economic ties between Canada and India. This increased trade relationship can lead to more collaboration in various sectors, such as technology, agriculture, and manufacturing.
4. Market Effects: The increase in demand for Indian products can also impact the market dynamics within Canada. It might create opportunities for Indian businesses to expand their market presence in Canada, leading to more competition and choices for consumers.
Overall, an increase in consumer demand for products manufactured in India by Canadians can have significant implications on trade, economy, and market dynamics between the two countries.