The following appeared as part of an article in a weekly news magazine.
"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 the argument claims that the country of Sacchar can reduce its trade deficit by lowering the price of its primary export,sugar, which will help the country in better competing for markets with other sugar-exporting countries and increasing the sale of sugar thus reducing the trade deficit.The argument seems to be convincing on the face but it makes some unwarranted assumption which are listed below.
Firstly,the author assumes that only lowering the price of Sugar will help it in competing with other sugar-exporting countries.There may be other factors such as quality of sugar,duration of the presence of other countries in the market, and marketing strategies, which could be affecting the sale of Sacchar's sugar abroad.
Secondly, author solely focuses on the country's primary export.
It is quite possible that applying the same strategy on other resources might help in solving the trade deficit problem.For this we need to analyze the proportions of sales of other exports, their availability, etc.
Thirdly, author does not considers the situation where the other competing countries
might lower the prices of sugar as well.In such case, the strategy would fail.
In conclusion the argument is unconvincing.To strengthen the argument, the author should have ensured that by only lowering the price of sugar its sales will increase in international markets or that other countries will not lower their quoted price of sugar.Additionally, he must provide the information about the factors responsible for high sales of sugar in the international market and how other exports of Sacchar contribute in the trade deficit to better evaluate the argument.
"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 the argument claims that the country of Sacchar can reduce its trade deficit by lowering the price of its primary export,sugar, which will help the country in better competing for markets with other sugar-exporting countries and increasing the sale of sugar thus reducing the trade deficit.The argument seems to be convincing on the face but it makes some unwarranted assumption which are listed below.
Firstly,the author assumes that only lowering the price of Sugar will help it in competing with other sugar-exporting countries.There may be other factors such as quality of sugar,duration of the presence of other countries in the market, and marketing strategies, which could be affecting the sale of Sacchar's sugar abroad.
Secondly, author solely focuses on the country's primary export.
It is quite possible that applying the same strategy on other resources might help in solving the trade deficit problem.For this we need to analyze the proportions of sales of other exports, their availability, etc.
Thirdly, author does not considers the situation where the other competing countries
might lower the prices of sugar as well.In such case, the strategy would fail.
In conclusion the argument is unconvincing.To strengthen the argument, the author should have ensured that by only lowering the price of sugar its sales will increase in international markets or that other countries will not lower their quoted price of sugar.Additionally, he must provide the information about the factors responsible for high sales of sugar in the international market and how other exports of Sacchar contribute in the trade deficit to better evaluate the argument.
