Prompt: 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.
Discussed how well reasoned... etc.
The argument that the country of Sacchar can best solve its current trade deficit problem by lowering the price of sugar is a flawed statement. Ultimately, Sacchar's profit from trade is dependent on the supply and demand of the world sugar market.
The above argument states that by reducing its prices Sacchar would be better able to compete in the world sugar market. However, it does not take into account the market's current supply and demand for sugar. The argument fails to recognize the hundreds of other countries who also export sugar. If the market is already flooded with other country's sugar exports then the demand needs to be high enough for the market to remain competitive. If there is not a high demand for sugar then it does not matter if Sacchar lowers its price as the demand for sugar has not led to an increase in sales.
Another flaw in the argument is the lack of consideration for the sugar industry within the country of Sacchar. If Sacchar lowers the price of its sugar but the expenses required to make the sugar remain the same then the country will not be generating any new profit. Also, if sugar farmers in Sacchar rely on certain imports to produce the sugar but the profit received from the sugar being exported drops then sugar farmers won't be able to produce as much sugar. The drop in sugar production will lead to fewer exports and will cause Sacchar's trade deficit to continue to decline.
Because the argument makes several unwarranted assumptions, it fails to make a convincing case that Sacchar will be able to solve its current trade deficit problem by lowering the price of sugar.
Discussed how well reasoned... etc.
The argument that the country of Sacchar can best solve its current trade deficit problem by lowering the price of sugar is a flawed statement. Ultimately, Sacchar's profit from trade is dependent on the supply and demand of the world sugar market.
The above argument states that by reducing its prices Sacchar would be better able to compete in the world sugar market. However, it does not take into account the market's current supply and demand for sugar. The argument fails to recognize the hundreds of other countries who also export sugar. If the market is already flooded with other country's sugar exports then the demand needs to be high enough for the market to remain competitive. If there is not a high demand for sugar then it does not matter if Sacchar lowers its price as the demand for sugar has not led to an increase in sales.
Another flaw in the argument is the lack of consideration for the sugar industry within the country of Sacchar. If Sacchar lowers the price of its sugar but the expenses required to make the sugar remain the same then the country will not be generating any new profit. Also, if sugar farmers in Sacchar rely on certain imports to produce the sugar but the profit received from the sugar being exported drops then sugar farmers won't be able to produce as much sugar. The drop in sugar production will lead to fewer exports and will cause Sacchar's trade deficit to continue to decline.
Because the argument makes several unwarranted assumptions, it fails to make a convincing case that Sacchar will be able to solve its current trade deficit problem by lowering the price of sugar.
