The following appeared as part of an article in a weekly newsmagazine.
“The country of Sacchar can best solve its current trade deficit problem by lowering the price of sugar, its primary export. Such an action
would make Sacchar better able to compete for markets with other sugar-exporting countries. The sale of Sacchar’s sugar abroad would
increase, and this increase would substantially reduce Sacchar’s trade deficit.”
Discuss how well reasoned . . . etc.
The author of an article recommended that sacchar can reduce its trade deficit by lowering the price of sugar. The line of reasoning based on the fact that lower price of sugar ,sacchar's primary export, would make a Sacchar a better competitor and increase in the sale of sugar at abroad would reduce its trade deficits. The author has missed out lot of relevant facts that are required in order to evaluate the argument. Stated in this way , argument has several flaws.
Firstly, The author main assumption is that lower price of sugar will definately increase revenues. It is possible that even if the price of the sugar is lowered there is not much demand of sugar in the market. There are not enough buyers for the sugar produced by the sacchar. The author has not provided any evidence that links the lowering price will definately improve sales of sugar, Therefore , The assumption is unwarranted and unsupported.
Secondly , author has not able to provide any evidence that how the country going to bear the reduction of price. for Instance , it is possible that reduction in price of sugar cause unrest among farmers or demoralize them . Farmers may stop proudcing sugar anymore due to low return on investment.
Thirdly, The author falsely assumed that reason for less selling of sugar is the higher price. It is possible that price of sugar is lower than what other countries are offering but sugar quality is really poor or may be taxes are too high. Again , the author has not provided any evidences.
Finally , The reducuton in the price of sugar considered to be the best way to reduce trade deficit's of sacchar. There could be other ways to reduce the trade deficit's. The country can set up new sugar based industries and sell the finished processed products instead of selling raw sugar. This way not only country's can increase the revenue but also create new job opportunities.
In sum , The argument is weak. The argument would have been strengthened if the author provides evidence that shows that reduction of price will definately increase the revenues and higher price is the only cause of less demand of sugar. Also, The author has to provide an evidence that there is not other way to reduce the trade deficits. In the absence of these evidences, argument is unconvincing
“The country of Sacchar can best solve its current trade deficit problem by lowering the price of sugar, its primary export. Such an action
would make Sacchar better able to compete for markets with other sugar-exporting countries. The sale of Sacchar’s sugar abroad would
increase, and this increase would substantially reduce Sacchar’s trade deficit.”
Discuss how well reasoned . . . etc.
The author of an article recommended that sacchar can reduce its trade deficit by lowering the price of sugar. The line of reasoning based on the fact that lower price of sugar ,sacchar's primary export, would make a Sacchar a better competitor and increase in the sale of sugar at abroad would reduce its trade deficits. The author has missed out lot of relevant facts that are required in order to evaluate the argument. Stated in this way , argument has several flaws.
Firstly, The author main assumption is that lower price of sugar will definately increase revenues. It is possible that even if the price of the sugar is lowered there is not much demand of sugar in the market. There are not enough buyers for the sugar produced by the sacchar. The author has not provided any evidence that links the lowering price will definately improve sales of sugar, Therefore , The assumption is unwarranted and unsupported.
Secondly , author has not able to provide any evidence that how the country going to bear the reduction of price. for Instance , it is possible that reduction in price of sugar cause unrest among farmers or demoralize them . Farmers may stop proudcing sugar anymore due to low return on investment.
Thirdly, The author falsely assumed that reason for less selling of sugar is the higher price. It is possible that price of sugar is lower than what other countries are offering but sugar quality is really poor or may be taxes are too high. Again , the author has not provided any evidences.
Finally , The reducuton in the price of sugar considered to be the best way to reduce trade deficit's of sacchar. There could be other ways to reduce the trade deficit's. The country can set up new sugar based industries and sell the finished processed products instead of selling raw sugar. This way not only country's can increase the revenue but also create new job opportunities.
In sum , The argument is weak. The argument would have been strengthened if the author provides evidence that shows that reduction of price will definately increase the revenues and higher price is the only cause of less demand of sugar. Also, The author has to provide an evidence that there is not other way to reduce the trade deficits. In the absence of these evidences, argument is unconvincing
