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# 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]

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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?

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

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06 Feb 2012, 23:58
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Clearly (A)

(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]

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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]

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07 Feb 2012, 19:23
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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]

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08 Feb 2012, 01:31
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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]

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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]

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

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30 Jan 2013, 14:15
hellfridge wrote:
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.

"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.

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

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19 Oct 2013, 03:51
hellfridge wrote:
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.

You can look at this way too (C) talks only about cherries while the argument discusses about a variety of other products. Moreover the argument talks abt an economic rationale. The argument also uses terms such as redundant trade and economic rationale which imply that all this is a much bigger deal than just sale of cherries. Hence A.
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Re: One feature of the global food economy is the simultaneous [#permalink]

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22 Oct 2013, 13:56
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This is a strengthen question. In strengthen questions,we are looking for an answer that will echo the stimulus and personalize it. You want to stay broad, and not get too specific, but at the same time, address the underlying issue. In this problem, we are looking for an answer that will justifies the economic trade.

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. Sounds promising. Identifies the conclusion -which is to addresses why economic trade makes sense- (some countries produce better goods than others, even if they are trading the same goods. )
b) Undertaking free trade with one’s political allies helps to maintain international goodwill. Out of scope. Does not address economic trade benefits.
c) In recent years, consumers in California boycotted domestic cherries, demanding better working conditions for agricultural laborers in the state. way too extreme and specific. The stimulus mentions import and export between several countries- this option only explains California's redundant trading.
d) Local growers could sell their products at a premium in domestic markets. Out of scope. Weakens the argument.
e) The economic globalization of redundant trade allows for the sharing of cultural norms and values. Out of scope. Does address a benefit of redundant economic trading, but sharing cultural norms and values can be achieved several ways- not only through trade. Therefore, E does not address the conclusion.

Hope that helps!
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Re: One feature of the global food economy is the simultaneous [#permalink]

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07 Apr 2014, 12:14
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Why D is wrong ?
Exporting a surplus product, a nation can reduce product's percentage availability among imported products and such practice allows local growers to fetch above wholesale price for that product in the market. Even in India it happens that we export most of the good quality tea to other countries at good price and growers sell whatever remains in the local market at a competitive price equivalent to the price other imported tea.

Usually exporters export those items for which they can fetch good price in other country and import anything which can get good price in domestic market... Further option A is referring to some complex phenomenon rather than profit or loss.. which directly governs the direction of trade.

I think D is far much appropriate than A.

International ties can be established with normal trade as well. Thus, i think A is not better than D.
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Re: One feature of the global food economy is the simultaneous [#permalink]

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08 Apr 2014, 16:54
PiyushK wrote:
Why D is wrong ?
Exporting a surplus product, a nation can reduce product's percentage availability among imported products and such practice allows local growers to fetch above wholesale price for that product in the market. Even in India it happens that we export most of the good quality tea to other countries at good price and growers sell whatever remains in the local market at a competitive price equivalent to the price other imported tea.

Usually exporters export those items for which they can fetch good price in other country and import anything which can get good price in domestic market... Further option A is referring to some complex phenomenon rather than profit or loss.. which directly governs the direction of trade.

I think D is far much appropriate than A.

International ties can be established with normal trade as well. Thus, i think A is not better than D.

The point you are missing here is:

The products are not grown in India.We are talking about products grown in China & exported to Sri Lanka..So nowhere do the local growers benefit srom such a practice.
If we talk about local growers in California...the implied subject of the argument..we can see that it is out of scope as local growers have no role to play in this supply chain...
We cannot assume that the local growers that are discussed in the options are those belonging to Japan or chile so that your case stands valid

Hope its clear..Kudos if I helped..
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Re: One feature of the global food economy is the simultaneous [#permalink]

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09 Apr 2014, 00:53
JusTLucK04 wrote:
PiyushK wrote:
Why D is wrong ?
Exporting a surplus product, a nation can reduce product's percentage availability among imported products and such practice allows local growers to fetch above wholesale price for that product in the market. Even in India it happens that we export most of the good quality tea to other countries at good price and growers sell whatever remains in the local market at a competitive price equivalent to the price other imported tea.

Usually exporters export those items for which they can fetch good price in other country and import anything which can get good price in domestic market... Further option A is referring to some complex phenomenon rather than profit or loss.. which directly governs the direction of trade.

I think D is far much appropriate than A.

International ties can be established with normal trade as well. Thus, i think A is not better than D.

The point you are missing here is:

The products are not grown in India.We are talking about products grown in China & exported to Sri Lanka..So nowhere do the local growers benefit srom such a practice.
If we talk about local growers in California...the implied subject of the argument..we can see that it is out of scope as local growers have no role to play in this supply chain...
We cannot assume that the local growers that are discussed in the options are those belonging to Japan or chile so that your case stands valid

Hope its clear..Kudos if I helped..

I think local growers in option D is referring to growers in a country that is doing redundant trade,
and these growers are getting benefited by selling their yield at premium price in domestic market.

I mean; why we can not assume that local growers belongs to the country that is practicing redundant trade ?

Further argument wants us to look for some indirect benefit to someone, a benefit that can justify the rational behind redundant trade.

Can we compare the rational mentioned in option A and B ?
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Re: One feature of the global food economy is the simultaneous [#permalink]

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09 Apr 2014, 17:45
PiyushK wrote:
JusTLucK04 wrote:
PiyushK wrote:
Why D is wrong ?
Exporting a surplus product, a nation can reduce product's percentage availability among imported products and such practice allows local growers to fetch above wholesale price for that product in the market. Even in India it happens that we export most of the good quality tea to other countries at good price and growers sell whatever remains in the local market at a competitive price equivalent to the price other imported tea.

Usually exporters export those items for which they can fetch good price in other country and import anything which can get good price in domestic market... Further option A is referring to some complex phenomenon rather than profit or loss.. which directly governs the direction of trade.

I think D is far much appropriate than A.

International ties can be established with normal trade as well. Thus, i think A is not better than D.

The point you are missing here is:

The products are not grown in India.We are talking about products grown in China & exported to Sri Lanka..So nowhere do the local growers benefit srom such a practice.
If we talk about local growers in California...the implied subject of the argument..we can see that it is out of scope as local growers have no role to play in this supply chain...
We cannot assume that the local growers that are discussed in the options are those belonging to Japan or chile so that your case stands valid

Hope its clear..Kudos if I helped..

I think local growers in option D is referring to growers in a country that is doing redundant trade,
and these growers are getting benefited by selling their yield at premium price in domestic market.

I mean; why we can not assume that local growers belongs to the country that is practicing redundant trade ?

Further argument wants us to look for some indirect benefit to someone, a benefit that can justify the rational behind redundant trade.

Can we compare the rational mentioned in option A and B ?

You are absolutely correct..Local growers belong to the country practicing redundant trade..California in our case...So how are these growers benefiting by selling their yield under redundant trade when the trade does not include the product produced by them or any other locally produced product...
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Re: One feature of the global food economy is the simultaneous [#permalink]

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17 Apr 2014, 07:55
Runner2 wrote:
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?

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.

Conclusion:- there is a justifiable economic rationale for redundant trade.

A) Establishing international ties through trade facilitates access to other desired goods that are more efficiently produced abroad. - Strengthener - Have a point to justify the economic rationale for redundant trade
b) Undertaking free trade with one’s political allies helps to maintain international goodwill. - Out of scope - Good will has nothing to do with the Economic justification
c) In recent years, consumers in California boycotted domestic cherries, demanding better working conditions for agricultural laborers in the state. - Out of scope. Does not give info for conclusion to be true
d) Local growers could sell their products at a premium in domestic markets. - Out of scope. Does not give info for conclusion to be true
e) The economic globalization of redundant trade allows for the sharing of cultural norms and values. - Out of scope - Good will has nothing to do with the Economic justification

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

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17 Apr 2014, 08:13
PiyushK wrote:
JusTLucK04 wrote:
PiyushK wrote:
Why D is wrong ?
Exporting a surplus product, a nation can reduce product's percentage availability among imported products and such practice allows local growers to fetch above wholesale price for that product in the market. Even in India it happens that we export most of the good quality tea to other countries at good price and growers sell whatever remains in the local market at a competitive price equivalent to the price other imported tea.

Usually exporters export those items for which they can fetch good price in other country and import anything which can get good price in domestic market... Further option A is referring to some complex phenomenon rather than profit or loss.. which directly governs the direction of trade.

I think D is far much appropriate than A.

International ties can be established with normal trade as well. Thus, i think A is not better than D.

The point you are missing here is:

The products are not grown in India.We are talking about products grown in China & exported to Sri Lanka..So nowhere do the local growers benefit srom such a practice.
If we talk about local growers in California...the implied subject of the argument..we can see that it is out of scope as local growers have no role to play in this supply chain...
We cannot assume that the local growers that are discussed in the options are those belonging to Japan or chile so that your case stands valid

Hope its clear..Kudos if I helped..

I think local growers in option D is referring to growers in a country that is doing redundant trade,
and these growers are getting benefited by selling their yield at premium price in domestic market.

I mean; why we can not assume that local growers belongs to the country that is practicing redundant trade ?

Further argument wants us to look for some indirect benefit to someone, a benefit that can justify the rational behind redundant trade.

Can we compare the rational mentioned in option A and B ?

If locals sells their product is the domestic market - this has nothing to do with the redundant trade.
Conclusion says There is economic justification for Redundant trade.

And to strengthen this we need somthing that gives some more extra points for us to believe conclusion to be true.

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

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26 Apr 2014, 03:56
straight +1 for A, too many explanations already provided above..
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Re: One feature of the global food economy is the simultaneous [#permalink]

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12 May 2014, 23:51
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PiyushK wrote:
Why D is wrong ?
Exporting a surplus product, a nation can reduce product's percentage availability among imported products and such practice allows local growers to fetch above wholesale price for that product in the market. Even in India it happens that we export most of the good quality tea to other countries at good price and growers sell whatever remains in the local market at a competitive price equivalent to the price other imported tea.

Usually exporters export those items for which they can fetch good price in other country and import anything which can get good price in domestic market... Further option A is referring to some complex phenomenon rather than profit or loss.. which directly governs the direction of trade.

I think D is far much appropriate than A.

International ties can be established with normal trade as well. Thus, i think A is not better than D.

Hi,

D is wrong because it is saying that " Local growers could sell their products at a premium in domestic markets. "

It could have been correct it would have said that Local growers could sell their products at a premium in foreign domestic markets.
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Re: One feature of the global food economy is the simultaneous [#permalink]

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13 May 2014, 01:31
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I will also for A. Good question.
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Re: One feature of the global food economy is the simultaneous [#permalink]

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14 Dec 2014, 20:45
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?

ties with trade facilities -> access to products that are produced "efficiently" -> May be there can be a transfer of technology or may be bring down the prices of existing commodity -> Some economic rationale -> Correct
• Undertaking free trade with one’s political allies helps to maintain international goodwill -> No economic rationale.
• In recent years, consumers in California boycotted domestic cherries, demanding better working conditions for agricultural laborers in the state -> This might be temporary, this might help to bring down the prices, but where is economic rationale. it is more of a stop gap resolution
• Local growers could sell their products at a premium in domestic markets. -> Local to local -> How does it help trade?
• The economic globalization of redundant trade allows for the sharing of cultural norms and values -> No economic benefit
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Re: One feature of the global food economy is the simultaneous   [#permalink] 14 Dec 2014, 20:45

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