Anyone please explain the answer of this question!

[bowleyjoo]

A small country, Country S, has instituted a hefty tax on imported electronics in an attempt to protect the largest company and employer in the country. As a result of this import tax, the national electronics company is now able to compete in the electronics market.

Which of the following can be inferred from the information above?

(A) Only small quantities of electronics from companies outside of Country S will now be sold in Country S.
(B) To take further advantage of the import tax, the national electronics company will expand its product line.
(C) Electronics have become more expensive to import not only due to the added import taxes but also due to increased transportation costs.
(D) Electronics are cheaper to produce outside Country S than inside Country S.
(E) The national electronics company not only sells electronics products in Country S but also exports them to Country T and Country U.

OA is D. Why?

[schakiiieee]

I agree with Ans D.

(A) --> Nothing about it in the Paragraph.

(B) --> Nothing about it in the Paragraph.

(C) --> Nothing about it in the Paragraph.

(D) --> Would explain why the company can compete after companies from other countries are held back by the tax.

(E) --> Nothing about it in the Paragraph.

[stop@800]

the company is suffering bcoz of imports
why
as when the govt increased the import tax
the price of imported goods increased
so internally produced goods becomes cheaper [as they do not need to pat any import tax]

D clearly says the product produced outside is cheaper.

If it had not been
then thr would not have been any problem bcoz of imports...


hope this helps...

[bowleyjoo]

Thanks guys. I understand, but I still couldn't get rid of choice (A).

If the imported products become more expensive, the number they are sold in the country S should drop. I cannot eliminate this choice.

[raunekk]

imo:D

Not A because the language is too strong...

Only small quantities of electronics from companies outside of Country S will now be sold in Country S.

its nowhere mentioned in d stimulus about the quantities..


its not a strong inference...
Its quite possible that this small quantities can also prove as a tough competitor to national electronics company ...

[Bidisha800]

This must be a 450 level question ... I would be scared if I get any such CRs in my test

[kris77]

I'd say D but I'm afraid more because of my intuition than any logic.