You are an adviser to the Indian government. Until now, government policy in India has been to severely limit imports into India

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QUESTION:

You are an adviser to the Indian government. Until now, government policy in India has been to severely limit imports into India, resulting also in a low level of Indian exports. The government is considering a policy shift too much freer trade.

a. What are three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India?

b. Which groups in India will be the supporters of the policy shift toward freer trade? Which groups will be the opponents?


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