Exports of United States wood pulp will rise considerably

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Exports of United States wood pulp will rise considerably during this year. The reason for the rise is that the falling value of the dollar will make it cheaper for paper manufacturers in Japan and Western Europe to buy American wood pulp than to get it from any other source.

Which of the following is an assumption made in drawing the conclusion above?


(A) Factory output of paper products in Japan and Western Europe will increase sharply during this year.

(B) The quality of the wood pulp produced in the United States would be adequate for the purposes of Japanese and Western European paper manufacturers.

(C) Paper manufacturers in Japan and Western Europe would prefer to use wood pulp produced in the United States if cost were not a factor.

(D) Demand for paper products made in Japan and Western Europe will not increase sharply during this year.

(E) Production of wood pulp by United States companies will not increase sharply during this year.

OA B

Source: Official Guide

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by deloitte247 » Sun Oct 13, 2019 3:16 am
Premise: The falling value of dollar will make it cheaper for paper manufacturers in Japan and Western Europe to buy American wood pulp than to get it from any other source.

Conclusion: Exports of United States wood pulp will rise considerably this year.

Option A - Incorrect
We can't know about the rate of factory outputs of paper products in Japan and Western Europe because it wasn't stated.

Option B - Correct
This is true. The fall in the value of dollar which makes wood pulp cheaper for Japan and Western Europe paper manufacturers, will result to the rise in exports of wood pulp produced in the United States.

Option C - Incorrect
The purchase of wood pulp in United States rather than any other source is based on the falling value of dollar. Hence, thus claim is incorrect.

Option D - Incorrect
This is not relevant to the argument because we are not concerned about the demand for paper products in Japan and Western Europe.

Option E - Incorrect
As a result of the falling value of dollar, the production of wood pulp in the United States will increase.