OG12-66 qn-must be true

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OG12-66 qn-must be true

by kishokbabu » Tue Jan 03, 2012 3:30 am
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.

Any one pls explain why the anwer choice E& B is wrong and what valid reason that make answer choice A as correct answer.

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by nileshdalvi » Tue Jan 03, 2012 5:09 am
B. Those industries had to contend with the fact
that other countries banned imports from
Country Z.
>> Is there anything mentioned about other countries banning imports from Z??
So this cant be concluded.

E. Those industries started to move into export
markets that they had previously judged
unprofitable.
>> This talks about some industries which have moved to export but in the argument we are talking about the problems faced by existing export industries, so this cannot be concluded.

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by sam2304 » Tue Jan 03, 2012 5:20 am
Govt bans import of products manufactured by upcoming industries to promote them. Costs went up to Other industries who use those products as raw materials => They were not able to compete effectively.

We are asked to find the conc of the arg.

A. Profit margin wasn't high to absorb the increase in raw materials.
B. Irrelevant. Out of scope
C. Not supported - the arg says they are not able to compete properly.
D. New information nothing related to the arg
E. New information nothing related to the arg

IMO A.
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