Question

Do you think there is room for compromise between countries who each have an interest protect a certain industry-specific to their country? For example, if India was experiencing excess foreign competition in the auto industry and therefore pursued to protect the industry with a tariff on imported vehicles, is it possible that it could concede to tariffs placed on a particular good it was involved in exporting to another country?

Answer 1

One way of compromise in this situation is inviting for FDIs for the same company as Foreign Direct Investment can be considered as a win win situations for both the company as well as the country as FDI bring those company to the country and this helps the country to develop and company to expand the market. It is indeed possible to concede to tariffs and however that depends on the domestic prices in the market.