Why would machine-made textiles from Britain ruin India's hand-weaving industry?

• A. Indian hand-weaving industry was protected by high tariffs on British imports.
• B. British textiles were made from inferior materials, which increased their popularity in India.
• C. Machine-made textiles could be produced more cheaply and in larger quantities, making them more competitive than hand-woven Indian textiles.
• D. Machine-made textiles required more skilled labor than hand-woven textiles, making them less accessible.

Answer: (C)

Verified step by step guidance

1. Understand the concept of comparative advantage and economies of scale: Machine-made textiles benefit from mechanization, allowing production at a lower cost per unit compared to hand-woven textiles.
2. Recognize that machine-made textiles can be produced in larger quantities due to industrial machinery, increasing supply and reducing prices in the market.
3. Analyze how lower prices and higher availability of machine-made textiles make them more competitive against hand-woven Indian textiles, which are typically more expensive and produced in smaller quantities.
4. Consider the impact on demand: Consumers in India would prefer cheaper machine-made textiles, reducing demand for hand-woven products and harming the local hand-weaving industry.
5. Note that tariffs on British imports were initially meant to protect Indian hand-weaving, but once machine-made textiles became cheaper and more abundant, these protections were insufficient to prevent the decline of the hand-weaving industry.