Imports to Z

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Imports to Z

by ryantherocket » Fri Jul 16, 2010 5:04 am
To protect certain flegling 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 can be most properly inferred from the passage about the products whose importation was banned?

(A) Those products had been cheaper to import than they were to make within country Z's fledgling industries.

(B) Those products were the ones that country Z was hoping to export in its turn, once the flegling industries matured.

(C) Those products used to be imported from just those countries to which country Z's exports went.

(D) Those products had become more and more expensive to import, which resulted in a foreign trade deficit just before the ban.

(E) Those products used to be imported in very small quantities, but they were essential to country Z's economy.
Source: — Critical Reasoning |

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by Patrick_GMATFix » Fri Jul 16, 2010 5:07 am
[The reply below was taken from this thread]

Inference questions ask you to draw a conclusion. You must select the answer choice that most directly follows the premises of the passage without needing any major new assumption.

The premise here is that once imports of goods were banned to protect industries who could make these products domestically, other industries ('export-dependent industries') which would buy these products had a harder time competing abroad. Essentially this means that these export-industries (who would be the buyers of the banned imports) were forced to incur additional cost as a result of the ban (meaning these products cost more when they are purchased domestically from the fledgling industries than when they are imported)

A is correct

To look at a detailed solution, review GMATPrep question 2003. You can find similar questions by searching for topic='Inference' and difficulty='400-500' in the Drill Generator.

Good luck,
-Patrick
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