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# Kernland imposes a high tariff on the export of unprocessed

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Kernland imposes a high tariff on the export of unprocessed [#permalink]

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27 Feb 2012, 22:50
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Hi All,

Kernland imposes a high tariff on the export of unprocessed cashew nuts in order to ensure that the nuts are sold to domestic processing plants. If the tariff were lifted and unprocessed cashews were sold at world market prices, more farmers could profit by growing cashews. However, since all the processing plants are in urban areas, removing the tariff would seriously hamper the government's effort to reduce urban unemployment over the next five years. Which of the following, if true, most seriously weakens the argument?
A. Some of the byproducts of processing cashews are used for manufacturing paints and plastics.
B. Other countries in which cashews are processed subsidize their processing plants.
C. More people in Kernland are engaged in farming cashews than in processing them.
D. Buying unprocessed cashews at lower than world-market prices enable cashew processors in Kernland to sell processed nuts at competitive prices.
E. A lack of profitable crops is driving an increasing number of small farmers in Kernland off their land and into the cities.

Thanks
Ravi
If you have any questions
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28 Feb 2012, 00:07
(E)

The imposition of tax on exports will make the crop even less profitable. The farmers migration to urban areas continues resulting in less cashewnuts production. This will eventually reduce the employment in cashew processing plants in urban areas. Hence weaken the conclusion : government efforts to provide more and more employment in urban areas.
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28 Feb 2012, 01:23
Thanks out of curiosity is the option C out of scope because I thought c also worked becoz if more people are in farming than processing tariff removal will not cause much increase in unemployment

What do you think

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Senior Manager
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28 Feb 2012, 11:09
Hai ravi

I also think option C is the answer, just check the following link
http://www.manhattangmat.com/forums/ker ... t5833.html
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02 Mar 2012, 08:22
E pretty clearly. If the tariff is not lifted then unemployed cashew farmers would move to cities leading to higher unemployment anyway so it is pointless to remove the tariff to protect cashew processing plant jobs from the point of view of reducing urban unemployment.

@raviram80. The argument talks about urban unemployment and not overall (rural+urban) unemployment levels leading to C being out of scope.
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Re: Kernland imposes a high tariff on the export of unprocessed [#permalink]

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24 Aug 2014, 15:23
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: Kernland imposes a high tariff on the export of unprocessed [#permalink]

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15 Oct 2016, 08:01
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).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: Kernland imposes a high tariff on the export of unprocessed   [#permalink] 15 Oct 2016, 08:01
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