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Re: Exporters in Country X are facing lower revenues due to a shortage of [#permalink]
MartyMurray
Pardon my silly questions - maybe just overthinking but I wanna be 100% sure I understand the reasoning. Let me know if I am thinking in the right way:
Country x exports goods. Lets say it exports jewellery to other countries. Now it needs containers to export the jewellery. Without containers no exports can happen. So even though jewellery is needed by other countries revenue falls.

Now imports to country x has fallen - which means country x is importing less. These imports could be of anything and due to any reasons - that is irrelevant.

Is there an assumption in the argument that exports only happen in the containers that come in country x carrying imports?
This is then easy to understand because if containers are not arriving due to lack of imports/reduced imports that are not filling the containers- obviously no containers are there for exports - causing decline.

Why is it not that they can just import empty containers for the sake of exporting and this way nothing would matter - Is it because the shipping company will say I will not just bring an empty container for you which is what the second statement is saying.

The last way would be buying containers - but that will be out of scope - because its shipping container.

Is my understanding correct?

Also I thought D because if consumers are purchasing more within the country less remains to export - hence export revenue falling. Two mistakes here we are talking about revenue of exporters so maybe it doesnt matter second the consumer purchases could increase for a good that is not even exported by exporters hence not impacting. So that was flawed. Hope this reasoning is fine as well.

Thanks as always!
GMAT Club Bot
Re: Exporters in Country X are facing lower revenues due to a shortage of [#permalink]
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