Social Science (087) — AI-generated practice question

Effect on Indian toy-makers: When Chinese toys were exported to India at cheaper prices, Indian toy-makers faced heavy losses. Chinese toys were more popular due to lower prices and new designs, so 70–80% of toy shops replaced Indian toys with Chinese ones. Indian toy-makers saw a sharp fall in sales.

Effect on Indian buyers: Indian buyers benefited greatly. They had a greater choice of toys and could buy them at lower prices than before. This improved their purchasing power and standard of living.

Source: Foreign Trade and Integration of Markets, Chapter 4

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• The question asks for both effects — examiners expect you to address each separately and clearly.
• Use data from the passage (70–80% figure) to strengthen your answer — it shows you read carefully.
• The contrast is key: Indian toy-makers = losers; Indian buyers = gainers. State this explicitly.
• For 3 marks, roughly equal space to each effect with a brief explanation of why is sufficient — no need to discuss trade barriers or liberalisation here.