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Problem 2 You are an advisor to the Indian government. Until now, government policy in India has been to severely limit impor

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Increase the free trade policies of India in get to drive in more exports and with the increase in the demand for Exports companies can get to set up in India which means there is a a investment flow inside the country and this can result in increase in employment on the whole.

Also, the imports can get to be at a lower price because of the comparative advantage it has and and this can actually be benefit to the citizens as their real income increases.

With the investment flow in, there can be a possibility of the overall economic growth of the country which is highly desired for a developing country like India and that is the reason why India should shift its policy towards more and more free trade.

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