To protect certain fledgling industries, the government of : GMAT Critical Reasoning (CR)
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# To protect certain fledgling industries, the government of

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To protect certain fledgling industries, the government of [#permalink]

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21 Jul 2008, 11:51
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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 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 Zs fledgling industries.

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

C. Those products used to be imported from just those countries to which country Zs exports went.

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

E. Those products used to be imported in very small quantities, but they were essential tocountry Zs economy.
[Reveal] Spoiler: OA
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Re: CR - fledging industries [#permalink]

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21 Jul 2008, 12:05
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A. See explanation next to each answer...

mbawaters wrote:
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 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 Zs fledgling industries.
If this were not true, then the effect on the exporting industries would not have been so severe, and the ban would not have even been necessary. If this is untrue, then products that would be imported would be more expensive, and the domestic products would be cheaper. Those industries using the product in manufacturing would use the domestic products and the fledgling industries wouldn't be fledgling, they'd be the supplier for other industries already. Answer has to be A.
B. Those products were ones that country Z was hoping to export in its turn, once the fledgling industries matured.
This is not supported. The stem talks about several export-dependent industries, but that does not mean these particular products were intended for export.
C. Those products used to be imported from just those countries to which country Zs exports went.
This goes beyond the stem. The stem says "export markets", it does not say anything about where the exports from Z went.
D. Those products had become more and more expensive to import, which resulted in aforeign trade deficit just before the ban.
Way beyond anything stated in the stem. No one said anything about the products expense becoming higher. The only thing stated was that the country created ban on those imports used by other industries exporting their end product which used the now-banned product in manufacturing.
E. Those products used to be imported in very small quantities, but they were essential tocountry Zs economy.
Never says this.

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Re: CR - fledging industries [#permalink]

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25 May 2011, 05:57
I know this has been discussed a million times. Even I got this correct. But M just a little skeptical that are we not being asked to infer too much here. Are we not required to limit our answer selection in inference question only to the information in the premises presented in the passage ?
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Re: CR - fledging industries [#permalink]

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25 May 2011, 07:34
choice A gives the reason / hidden assumption behind the cost going up due to the ban posed on the import of such products.

A it is.
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Re: CR - fledging industries [#permalink]

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17 Jun 2011, 12:09
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mbawaters wrote:
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 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 Zs fledgling industries.

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

C. Those products used to be imported from just those countries to which country Zs exports went.

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

E. Those products used to be imported in very small quantities, but they were essential tocountry Zs economy.

I would go for A.

the question tells that in order to protect the domestic industries . the govt banned imports. which implies that import products were cheaper than domestic products, otherwise why will be the goverment try to protect the fledgling industries. . thus once these imports are stopped naturally the cost to the buyer/expoters will be high in the doemstic market.

A clearly brings this out.

now Question no 2 from the same passage
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.

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Re: To protect certain fledgling industries, the government of [#permalink]

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24 Jan 2014, 08:43
Hello from the GMAT Club VerbalBot!

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Re: To protect certain fledgling industries, the government of [#permalink]

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09 Feb 2015, 05:52
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: To protect certain fledgling industries, the government of [#permalink]

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04 Aug 2015, 21:26
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So this question basically talks about two types of industries.

1)Local Fledgling Industries
2)Export Dependent Industries,who are being forced to buy products from local industries now.

Government puts a ban on importing products which are being made by the local fledgling industries -->Cost of the those products increases as the competition decreases.Hence the (2)Export dependent industries have a problem competing as now they have to buy the same product at an inflated cost, which makes them less profitable.

Ans is A
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Re: To protect certain fledgling industries, the government of [#permalink]

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15 Oct 2015, 21:22
does anybody have an idea about the difficulty level of this qsn?
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Re: To protect certain fledgling industries, the government of [#permalink]

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17 Oct 2016, 13:16
Hello from the GMAT Club VerbalBot!

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Re: To protect certain fledgling industries, the government of   [#permalink] 17 Oct 2016, 13:16
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