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Defense Department analysts worry that the ability of the United State

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Re: Defense Department analysts worry that the ability of the United State  [#permalink]

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New post 19 Oct 2018, 01:23
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Probus wrote:

Hi VeritasKarishma,

Can you please help me to understand how this is a paradox question. What part should i have read to get the ides that questions is asking to explain the paradox

Probus



Actually, there is no contradiction here. The situation is unexpected and you have to explain it. We don't have to explain why the Defence Department did not come up with the connection. We just have to explain how come the machine tool industry came up with the security concern issue.

The Defense Dep worries about issues of safety and security and the preparedness during possible war. So one would expect them to bring up the topic of "establishing an import quota" so that our manufacturing base does not shrink beyond acceptable. An import quota restricts imports and hence the manufacturing base needs to be maintained in the country to meet demand. The argument tells us that instead, the machine tool industry raised the issue of national security and requested to establish an import quota. The machine tool industry would suffer if there is no import quota since there would be indiscriminate imports and the manufacturing base in the country would shrink. So they want import quota. But it was surprising that they brought up the security concern issue instead of the usual loss of jobs, lower quality imports etc. That is what the question asks us to explain - Instead of the Defence Department bringing up this issue, how come the machine tool industry brought it up?
Option (C) tells us that the machine tool industry has tried lots of other reasons but the Govt has not paid heed. So then it makes sense, that out of desperation, they tried a valid concern which otherwise is someone else's job. But they tried to catch the Govt's attention by brining it up.
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Re: Defense Department analysts worry that the ability of the United State  [#permalink]

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New post 10 Sep 2019, 13:06
Hi VeritasKarishma,

I have a doubt, and hence haven't been able to understand the question fully.

The intended meaning is that Defense Department and Machine tool industry are both for import quotas for different reasons.

Defense Department is for the import quota because that will supplement their existing capacity.

Conversely, machine-tool industry is for import quotas because that will set a limit on the number of units that can be imported.

Does this mean the import quota didn't exist at all? Because if they were already importing, then Defense Department could also be advocating for increasing the limit assuming they are not prioritising profits of domestic machine-tool industry.

If this is the case, then I can't comprehend why exactly the machine tool industry raised the issue that it raised in its petition for import quotas.

Thank you!

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Defense Department analysts worry that the ability of the United State  [#permalink]

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New post 11 Sep 2019, 05:16
Rocknrolla21 wrote:
Hi VeritasKarishma,

I have a doubt, and hence haven't been able to understand the question fully.

The intended meaning is that Defense Department and Machine tool industry are both for import quotas for different reasons.

Defense Department is for the import quota because that will supplement their existing capacity.

Conversely, machine-tool industry is for import quotas because that will set a limit on the number of units that can be imported.

Does this mean the import quota didn't exist at all? Because if they were already importing, then Defense Department could also be advocating for increasing the limit assuming they are not prioritising profits of domestic machine-tool industry.

If this is the case, then I can't comprehend why exactly the machine tool industry raised the issue that it raised in its petition for import quotas.

Thank you!

Posted from my mobile device


I am not sure you understand what import quota is. If you do, then I don't really understand your question. I will explain what import quota is. You can follow up if it doesn't help.

Country X has machine tool industry which manufactures say 5 million units of tools. Say another 2 million tools are imported (say, at a cheaper price).
And together, they take care of the country's defense needs (to make weapons etc).

Since the imported tools are cheaper, the industries needing those tools are preferring to import more and more.
An import quota is a restriction on how much can be imported. The machine tools industry, say wants the quota to be at 2 million units. They want that the country should not be allowed to import more than 2 million units. To fulfil the country's requirement, the country should buy from its own machine tool industry. The machine tool industry feels that if more units are imported, their existing manufacturing base will shrink, their people will lose jobs etc.
Now the govt didn't pay heed to the machine tool industry's demand for a quota. So the machine tool industry brought in the defence angle to coax the govt: during war, imports may not be possible or too expensive - you need to manufacture your supplies within your borders so don't let us shrink.

Now the defence dept is also saying the same thing - have import quotas. Don't import more than the limit allowed by the quota. Don't let our machine tool industry base shrink. If we get into a war, we need enough capacity to be able to manage without importing (if need be).

The question is how come machine tool industry came up with the defence angle first?
Answer: Because other angles (people losing jobs etc) did not work.
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Defense Department analysts worry that the ability of the United State   [#permalink] 11 Sep 2019, 05:16

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