Globalisation has resulted in the trade of foreign commodities in domestic countries. Globalisation is the interconnection between counties through the expansion of foreign trade and foreign investment. It is the process of integrating the home country with foreign countries through the movement of goods, services, investment, technology and people.
With the growing globalisation, Chinese manufacturers are exporting Chinese toys to the Indian economy. In India, toys are sold at a high price. Because of this high price for toys, the Chinese manufacturers have started to export plastic toys to India. It will give a lot of opportunities and openings for domestic consumers to reach out beyond the domestic market. The consumers can choose between Indian and Chinese toys. Chinese toys have become more popular in the Indian markets due to its low price and attractive designs. Thus a large proportion of Indian toys have been substituted with much cheaper Chinese toys. This has also reduced the price of toys in the Indian market.
But the producers are at a loss because of the import of Chinese toys. Producers in India has to compete with the Chinese producers. Even though this greater competition has resulted in the improved standards of the products produced at a lower price, Indian producers are having a tough time competing in the market. The Chinese toys are far better in terms of cost of production and designs.
Thus the excessive import of toys has enabled the Indian buyers to have a wider choice at lower prices. The Chinese toy makers also acquire an opportunity to expand their production and profits. But the Indian producers face losses and many are shutting down their production.
