One feature of the global food economy is the simultaneous

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One feature of the global food economy is the simultaneous [#permalink]

06 Feb 2012, 23:16

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Hello,

Can someone Opine on the below problem:

One feature of the global food economy is the simultaneous import and export of the same items, a phenomenon known as “redundant trade.” In California, for example, domestic cherries are exported to Canada and Japan, while a nearly equivalent number of cherries are imported from Chile, Italy, and Germany. California also exports and imports nearly identical amounts of lettuce and almonds. Although shipping fresh fruits and vegetables is an expensive undertaking, there is a justifiable economic rationale for redundant trade.

Which of the following, if true, most strongly supports the conclusion above?

A) Establishing international ties through trade facilitates access to other desired goods that are more efficiently produced abroad.
b) Undertaking free trade with one’s political allies helps to maintain international goodwill.
c) In recent years, consumers in California boycotted domestic cherries, demanding better working conditions for agricultural laborers in the state.
d) Local growers could sell their products at a premium in domestic markets.
e) The economic globalization of redundant trade allows for the sharing of cultural norms and
values.

Thanks.

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Re: Help! One feature of the global food economy is [#permalink]

06 Feb 2012, 23:58

Clearly (A)

(A) - CORRECT. If establishing trade ties enables access to better goods produced abroad, this itself is basis enough to trade
(B) - Out of scope. Not mentioned.
(C) - Applicable just to cherries and not in general. Not the right choice.
(D) - This opposes the conclusion rather than supporting it. Incorrect.
(E) - No economic impact. Out of scope.
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Re: Help! One feature of the global food economy is [#permalink]

07 Feb 2012, 01:05

I think the answer is A.
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Re: Help! One feature of the global food economy is [#permalink]

07 Feb 2012, 19:23

don't understand the link between one specific company and possibility to buy different goods. For ex if the company trade shoes wtf this company will need relationships concerning other goods?

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Re: Help! One feature of the global food economy is [#permalink]

08 Feb 2012, 01:31

Key to answering this question is to find which answer choice talks about ECONOMIC SENSE.

A) Establishing international ties through trade facilitates access to other desired goods that are more efficiently produced abroad. CORRECT
b) Undertaking free trade with one’s political allies helps to maintain international goodwill. NO ECONOMIC SENSE.
c) In recent years, consumers in California boycotted domestic cherries, demanding better working conditions for agricultural laborers in the state. NO ECONOMIC SENSE.
d) Local growers could sell their products at a premium in domestic markets. NO ECONOMIC SENSE and weakens the argument by saying that redundant trade is bad economic sense.
e) The economic globalization of redundant trade allows for the sharing of cultural norms and
values. NO ECONOMIC SENSE, instead talks only about CULTURAL EXCHANGE. Probably a good politician but not a businessman

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Re: Help! One feature of the global food economy is [#permalink]

08 Feb 2012, 15:30

+1 A

Notice that we need an economic justification.
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Re: One feature of the global food economy is the simultaneous [#permalink]

30 Jan 2013, 12:32

i don't really get why answer choice C is wrong. In case people from California don't buy the domestic products anymore there are certainly economic reasons to import the goods since there is a market for foreign cherries in California.

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Re: One feature of the global food economy is the simultaneous [#permalink]

30 Jan 2013, 14:15

hellfridge wrote:

"Consumers boycotting" and "better labor conditions" are highly extraneous pieces of information. You should infer, but not infer too much. Choice A makes the most sense because everything in the answer sentence can be verified by the original paragraph.

Re: One feature of the global food economy is the simultaneous [#permalink] 30 Jan 2013, 14:15

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