gmatconqueror2018 wrote:
I have an issue with this question particularly choice C. If the cost of other shipping alternatives stabilizes, it implies the higher cost shipping alternatives will NOT decrease in price and therefore shows why Country X's revenues would decrease further since the passage implies these other methods are costlier. I really do not understand the logic of choice B. Nowhere does the passage mention anything about the capacity of containers and shipment. Thoughts would be appreciated.
I am no expert, but I think the "complete the passage" is looking for a weakener and C is a strengthening statement.
Premise:
Limited availability of "large" shipping containers is slowing down/decreasing revenue for sellers (exporters) in Country X.
Cause:
Country X is not importing as much as before. Ships carry goods from Country X to other countries on the same shipping containers that bring goods from other countries to country X. Because fewer ships are bringing in goods to Country X, fewer ships are transporting out goods from Country X.
Effect:
Country X has been losing customers that buy its goods; therefore lower revenue. Due to the lack of shipping containers, exporters in country X have lost orders (from customers); exporters probably had to compensate their customers for shipment delays; exporters had to use costlier alternatives, like air freight to fulfill customer orders (this increases operational costs that will lower revenue).
Part 2
Effect:
Country X will receive fewer imports from other countries leading to further decline in revenue.
Why will other countries sell less goods to Country X?
Cause:
Other countries are finding that selling goods to Country X is not profitable. A lack of frequent shipping containers is increasing operational costs, so more sellers in other countries are perhaps resorting to air freight to transport their goods to country X. Due to a lack of shipping containers, Country X now will have trouble exporting cost effectively, so operational costs will increase through alternatives like air freight, or exporters may not sell goods to other countries as the cost of transportation will not make the trade profitable (thus, lower revenue).
Given the above, the passage wants a reason that will support why country X will "lose revenue".
Option C states that the cost of shipping alternatives "may" stabilize in the future. This means shipping alternatives will become cost effective. If air freight becomes as affordable as shipping, then country X will NOT lose revenue as exporters can ship products more frequently.
This is a strengthener, not a weakener.
Option B states that shipping companies will move containers only when full. Remember, the first sentence of the premise states "shortage of large metal containers". Therefore, if sellers in other countries will be affected by the delay of the shipping companies waiting to fill containers, either they will not want to sell to Country X or they will use a shipping alternative. This will result in these large shipping containers arriving less frequently to Country X. If fewer ships are arriving to Country X, then fewer exports are departing Country X by large metal containers. And, if exporters in country X have to wait for full containers to depart then they will face lost orders, costly delays or costlier alternatives. The outcome of this chain reaction, is lower revenue.
Hope this helps.