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Comment by brianbreslin | Hacker News Reader

All foreign retailers run into this problem entering India. Ikea has been building factories so they can start sourcing from India in order to comply. Moving their production out of Pakistan and Bangladesh into India in order to comply to tackle the bigger market. Foreign owned businesses need to stock 30% or more of products sourced from India.

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The fact that companies are choosing to comply rather than simply not do business in India seems to mean that their policy is a huge success.

The policy is great for Indians and the companies involved. Jobs mean money to spend and a thriving economy.

The same policy implemented here would be great to rebuild our crumbling economy and get money flowing.

Hardly any economists -- who are trained in analyzing these proposals -- agree with this sentiment.

There are significant second-order effects of protectionism that are harmful yet not well understood by politicians or voters: retribution by other trading partners, increased prices and inflation are but a few.

It's working great for India and Brazil. Jobs, happy people, money flow.

Ask people from Brasil how much they enjoy the high prices they pay for consumer electronics some time.

Problem is that there is no tally of companies that choose not to do business in India. The successes are visible, the failures are not.

>The fact that companies are choosing to comply rather than simply not do business in India seems to mean that their policy is a huge success.

Ok, then conversely, which companies have chosen not to comply? Would that mean the policy is a huge failure?

Yeah, its a protectionist policy. It impossible to understand if IKEA having to open 3 factories in India is a larger GDP infusion than them not having to, but being able to redirect that capital at opening 80 stores and employing 8000 people vs 3 factories of 3000 people and 3 stores for another 3000 (these numbers are from my ass, just trying to make an example).

Great... why should india (or anyone) buy products made in pakistan?

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