Why do cars cost double in india what they cost in the US?

i mean even with duties, why is it so much more expensive? if the duties are reduced to American levels, will the cars come down in price to american level as well?

Answer:
there would be some reasons why costing double in india :

Add to that 25 million new jobs within the next 4 years.

These are India's new economic goals.

India expects its low-cost labor force and expertise in engineering to continue to draw
investment in the country's manufacturing sector.

India, of course, is known as a services hub. She would like to add to that growth in:

1. Engineering

2. Textiles

3. Drugs (legal)

&

4. Auto Parts

In any event, India will grow and grow and grow...
Purchasing power parity (PPP). That means that indians cant buy with the same money what USA people can buy with that money, on the car is because they import the cars, and the import tax is higher and also because the inflation is higher, that means higher prices.
it what the market will bear

The answers post by the user, for information only, FunQA.com does not guarantee the right.



More Questions and Answers:

More Questions and Answers:
  • Microeconmics: logarithmic utility functions and demand in a two persons two goods market!?
  • Does Mankiw know what he's talking about?
  • Does a communist economy reward productive workers?
  • What would happen if all the banks and creditors in the US called in all of their debt?
  • If there is a current account deficit, why might there be more protectionalism measures e.g. tariffs,quotas?
  • Do you know...?
  • What are the characteristics of the Fed Reserve's organizational structure that make it "quasi-governmental"?
  • samle paper of economics?
  • what political,economic, and soical conditions led to political revolutions in the first global age?