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Author Message
Intern
Joined: 22 May 2014
Posts: 26
Location: India
GMAT 1: 560 Q46 V29
GPA: 3.64

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15 Oct 2017, 04:36
3
“The country of Sacchar can best solve its current trade deficit problem by lowering the price of sugar, its primary export. Such an action would make Sacchar better able to compete for markets with other sugar-exporting countries. The sale of Sacchar’s sugar abroad would increase, and this increase would substantially reduce Sacchar’s trade deficit.”

The argument contends that the reduction in the price of sugar would lead the control in Sacchar's trade deficit issue. The author supports this claim for following reasons: By lowering the price of sugar, Sacchar would be able to compete in International sugar market and thus sale of Sacchar's sugar in abroad would increase. This line of reasoning is unpersuasive for couple of reasons.

First, this argument based on an oversimplified analysis of trade deficit problem facing by Sacchar. Trade deficit issues occurs when a country spends more on imports than it earns from export. The author assumes that after lowering the price of sugar, the sale of Sacchar sugar would increase and therefore, Sacchar would overcome the trade deficit issue. The author does not consider the possibility that after lowering the price of sugar, cost of production may exceed the earnings that would generate after sale of Sacchar's sugar. Thereby, It would lead Sacchar in further losses.
Moreover, other countries may also lower the price of sugar to remain competitive in market provided that Sacchar reduces the price of sugar, therefore this stategy will be ineffective in resolving the trade deficit issue.

Second, the author considers that earnings generated from sales of sugar might be comparable to amount used in importing goods and services by Sacchar. The author's claim would be refuted if Sacchar generated far less amount of money than what author expected from sales of sugar.

Finally, the strategy mentioned above fails to address two question:will price decrease stimulate the demand of Sacchar's sugar? will supply of Sacchar's sugar alone suffice to solve trade deficit issue.

In conclusion, the author should prepare the reliable data based on careful analysis of all statistics involved in import and export of country, and then implement effective strategy to resolve trade deficit issues.
Intern
Joined: 13 Oct 2017
Posts: 2

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22 Oct 2017, 23:59
Where is the country of Sacchar in Map ?
Manager
Joined: 29 May 2017
Posts: 121
Location: India
Schools: LBS MiM '20 (I)
GMAT 1: 760 Q50 V42

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11 Nov 2017, 06:31
3
sarasjain20 wrote:
“The country of Sacchar can best solve its current trade deficit problem by lowering the price of sugar, its primary export. Such an action would make Sacchar better able to compete for markets with other sugar-exporting countries. The sale of Sacchar’s sugar abroad would increase, and this increase would substantially reduce Sacchar’s trade deficit.”

The argument contends that the reduction in the price of sugar would lead the control in Sacchar's trade deficit issue. The author supports this claim for following reasons: By lowering the price of sugar, Sacchar would be able to compete in International sugar market and thus sale of Sacchar's sugar in abroad would increase. This line of reasoning is unpersuasive for couple of reasons.

First, this argument based on an oversimplified analysis of trade deficit problem facing by Sacchar. Trade deficit issues occurs when a country spends more on imports than it earns from export. The author assumes that after lowering the price of sugar, the sale of Sacchar sugar would increase and therefore, Sacchar would overcome the trade deficit issue. The author does not consider the possibility that after lowering the price of sugar, cost of production may exceed the earnings that would generate after sale of Sacchar's sugar. Thereby, It would lead Sacchar in further losses.
Moreover, other countries may also lower the price of sugar to remain competitive in market provided that Sacchar reduces the price of sugar, therefore this stategy will be ineffective in resolving the trade deficit issue.

Second, the author considers that earnings generated from sales of sugar might be comparable to amount used in importing goods and services by Sacchar. The author's claim would be refuted if Sacchar generated far less amount of money than what author expected from sales of sugar.

Finally, the strategy mentioned above fails to address two question:will price decrease stimulate the demand of Sacchar's sugar? will supply of Sacchar's sugar alone suffice to solve trade deficit issue.

In conclusion, the author should prepare the reliable data based on careful analysis of all statistics involved in import and export of country, and then implement effective strategy to resolve trade deficit issues.

Hey Saras.
First of all, the answer is way to small, people recommend atleast 450 words, but I would recommend 600 words(because thats what worked for me).
I followed chineseburneds template exactly.

Intro Para:
"The argument claims that people nowadays are not as concerned about regulating their intake of red meat and fatty cheeses as they were a decade ago. Stated in this way, the argument fails to consider several key factors, on the basis of which it can be evaluated. The conclusion of the argument relies on assumptions, which are not supported by clear evidence. Hence, the argument is weak, unconvincing and has several flaws."

Use this exactly, dont even need to change, except for the first line where you restate the question.

Conclusion Para:
"In conclusion, the argument is flawed for the above stated reasons and is therefore unconvincing. It could be considerably strengthened by clearly mentioning all the relevant facts to support the assumptions. In order to evaluate the merits of the situation, it is essential to have the full knowledge of all the contributing factors. In this particular case the "WRITE ALL FACTORS HERE AGAIN". Without this information, the argument remains unsubstantiated and open to a debate."

This paragraph also you can use the exact same, just change the contributing factors.

As for the remaining three paragraphs inbetween.
Try to find three flaws in the argument, I think you can find three assumptions easily in any argument.

Now structure of each passage try to do the following.
1. "this argument assumes that" - Restate the assumption.
2. "This statement is a stretch because" - try to give some explanation.
3. "For example" - give an example where the assumption fails.
4. "Cleary the example demonstrates" - write some more stuff ;p
5. "This argument can be considerably strenghtened if we had this info and that" - give some info.

Follow this structure for all the three paragraphs. Just change some connecting words in all the three to keep them a little different.
in second "Additionally, the argument fails to account for"
in third "Finally, the argument relies on the assumption that"

I think if you follow this stucture then you will reach 550 words easily.
Hope this helps.
_________________

A kudo a day keeps the doctor away.

Senior Manager
Joined: 08 Aug 2017
Posts: 252

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22 Nov 2017, 01:54
The argument readily assumes that lowering the price of sugar, a prime export commodity, will elevate the country's position in international market and increase the sugar export. In this way country can defeat the trade deficit soon. The argument based on given reasoning seems unpersuasive and flawed.

First, trade deficit is delta of value of total import and that of total export. The argument assume that sugar is its prime export commodity and lowering the sugar price will reflect in terms of elevation of country position in international market. However, the author remains silent on % of sugar export and fail to establish price-demand trend for sugar commodity in international market. Along with this argument is nowhere mentioned that sugar is only singular commodity to reduce the trade deficit. The argument doesn't provide suffice statics related to Sacchar and other sugar exporting countries.

Additionally, the argument assumes that rise in sugar sale would decrease the trade deficit.Here, no sugar sale v/s trade deficit information mentioned in the argument.

The argument's conclusion is completely based on hollow assumption having no solid ground.The lack of figures and trend of trade deficit in context of sugar make the argument flawed and unconvincing.
Intern
Joined: 22 May 2014
Posts: 26
Location: India
GMAT 1: 560 Q46 V29
GPA: 3.64

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18 Feb 2018, 06:32
1
Thanx guyz for a suggestion..
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