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Imports banned

Expert replies
by kingfisher » Fri Oct 01, 2010 10:51 pm
To protect certain fledgling industries, the government of country Z banned imports of the types of products
those industries were starting to make. As a direct result, the cost of those products to the buyers, several
export-dependent industries in Z, went up, sharply limiting the ability of those industries to compete effectively in
their export markets.

Which of the following conclusions about country Z’s adversely affected export-dependent industries is best
supported by the passage?
(A) Profit margins in those industries were not high enough to absorb the rise in costs mentioned above.
(B) Those industries had to contend with the fact that other countries banned imports from country Z.
(C) Those industries succeeded in expanding the domestic market for their products.
(D) Steps to offset rising materials costs by decreasing labor costs were taken in those industries.
(E) Those industries started to move into export markets that they had previously judged unprofitable.

OAA
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Source: — Critical Reasoning |

by goyalsau » Fri Oct 01, 2010 11:18 pm
kingfisher wrote:
To protect certain fledgling industries, the government of country Z banned imports of the types of products those industries were starting to make. As a direct result, the cost of those products to the buyers, several
export-dependent industries in Z, went up, sharply limiting the ability of those industries to compete effectively in
their export markets.

Which of the following conclusions about country Z’s adversely affected export-dependent industries is best
supported by the passage?
(A) Profit margins in those industries were not high enough to absorb the rise in costs mentioned above.
(B) Those industries had to contend with the fact that other countries banned imports from country Z.
(C) Those industries succeeded in expanding the domestic market for their products.
(D) Steps to offset rising materials costs by decreasing labor costs were taken in those industries.
(E) Those industries started to move into export markets that they had previously judged unprofitable.

OAA
Should BE A,
because if profit margins are enough to absorb the cost of material from the domestic market then they have not been affected by the increase price of raw material.
Saurabh Goyal
[email protected]
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by frank1 » Sat Oct 02, 2010 1:10 am
well intially i thought it was testing our SC skills rather than CR skill lol
with construction like this
those products to the buyers, several export-dependent industries in Z, went up

any way other all options are irrelevant,out of scope...
so A is the best one.
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by abhi.genx7 » Sat Oct 02, 2010 11:11 pm
Woulg go with A .
OA ??
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