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u2lover
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The Japanese economic model created strong domestic 11 Jul 2006, 18:14
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The Japanese economic model created strong domestic industries through subsidies from its Ministry of Trade and by closing off competitive foreign firms to its domestic market. This strategy promised to help economic growth by incubating domestic industries. New Japanese industries could count on a known local demand and would be protected from competition by tariffs and other barriers. The program could reduce the amount of imports and therefore improve the nation's balance of trade.

Which of the following, based on the passage above, is a weakness in this economic strategy?

A) A protectionist policy will create animosity among other nations.

B) Fast growth of small industries will create a class of millionaires and increase the inequality of income.

C) Subsidies pose a burden to taxpayers and support inefficient businesses.

D) Quotas are more regressive than tariffs.

E) The demand for the products made by the incubated industries would not be known.

please explain



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ps_dahiya
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The Japanese economic model created strong domestic 11 Jul 2006, 18:56
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Pretty tough for me.

May be E......
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buzzgaurav
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The Japanese economic model created strong domestic 11 Jul 2006, 22:48
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Picking E over C for a more direct realtion to context of the passage.
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shahnandan
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The Japanese economic model created strong domestic 11 Jul 2006, 23:51
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close call between E and C. Choose C.
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jaynayak
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The Japanese economic model created strong domestic 12 Jul 2006, 00:34
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Will go with C.

Only C and E are worth mentioning.........
But what works against E is that the author specifically states that the new industries would bank on known local demand....

New Japanese industries could count on a known local demand and would be protected from competition by tariffs and other barriers
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Gauss
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The Japanese economic model created strong domestic 12 Jul 2006, 01:30
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A) A protectionist policy will create animosity among other nations. out of scope

B) Fast growth of small industries will create a class of millionaires and increase the inequality of income. then....

C) Subsidies pose a burden to taxpayers and support inefficient businesses. winner

D) Quotas are more regressive than tariffs. not linked to passage

E) The demand for the products made by the incubated industries would not be known. then...
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sumitsarkar82
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The Japanese economic model created strong domestic 12 Jul 2006, 03:46
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Should be C.......

E tries to proove the argument as incorrect.

Rem - Weakening is not the same as Disproving
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karlfurt
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The Japanese economic model created strong domestic 12 Jul 2006, 06:35
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A) A protectionist policy will create animosity among other nations.
may worsen the balance of trade, but insufficient

B) Fast growth of small industries will create a class of millionaires and increase the inequality of income.
out of scope

C) Subsidies pose a burden to taxpayers and support inefficient businesses.
ok : burden to taxpayers=>reduced purchasing power=>lower local demand.
Inefficient businesses => higher export prices=>worsen balance of trade

D) Quotas are more regressive than tariffs.
out of scope

E) The demand for the products made by the incubated industries would not be known.
and??
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GMATT73
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The Japanese economic model created strong domestic 12 Jul 2006, 07:30
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(C) is clear because of the raised taxes having a drag on the economy. Already paying nearly 40% as it is!
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gmatclubber
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The Japanese economic model created strong domestic 12 Jul 2006, 08:16
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C it is. Not E as explained earlier, the demand is 'known'.
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freetheking
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The Japanese economic model created strong domestic 12 Jul 2006, 08:50
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IMO, C
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sharadGmat
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The Japanese economic model created strong domestic 13 Jul 2006, 13:11
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u2lover
The Japanese economic model created strong domestic industries through subsidies from its Ministry of Trade and by closing off competitive foreign firms to its domestic market. This strategy promised to help economic growth by incubating domestic industries. New Japanese industries could count on a known local demand and would be protected from competition by tariffs and other barriers. The program could reduce the amount of imports and therefore improve the nation's balance of trade.

Which of the following, based on the passage above, is a weakness in this economic strategy?

A) A protectionist policy will create animosity among other nations.

B) Fast growth of small industries will create a class of millionaires and increase the inequality of income.

C) Subsidies pose a burden to taxpayers and support inefficient businesses.

D) Quotas are more regressive than tariffs.

E) The demand for the products made by the incubated industries would not be known.

please explain
Show more



Between C and E.. I am trying to understand the question.. Question is asking the weakness in the economic strategy.. not how it can be weakened..

I have to pick C over E. As E is a statement that weakens the argument.
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paddyboy
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The Japanese economic model created strong domestic 13 Jul 2006, 13:20
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Great question and great discussion as well :)

Its C. As discussed above.
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u2lover
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The Japanese economic model created strong domestic 13 Jul 2006, 14:07
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I chose E as well, but E is wrong because passage states that the demand of domestic industries would be known.

OA is C
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xsports
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The Japanese economic model created strong domestic 20 Jul 2006, 15:39
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Clearly C.
E is definately out - contradicts the passage.
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Futuristic
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The Japanese economic model created strong domestic 21 Jul 2006, 00:50
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u2lover
The Japanese economic model created strong domestic industries through subsidies from its Ministry of Trade and by closing off competitive foreign firms to its domestic market. This strategy promised to help economic growth by incubating domestic industries. New Japanese industries could count on a known local demand and would be protected from competition by tariffs and other barriers. The program could reduce the amount of imports and therefore improve the nation's balance of trade.

Which of the following, based on the passage above, is a weakness in this economic strategy?

A) A protectionist policy will create animosity among other nations.

B) Fast growth of small industries will create a class of millionaires and increase the inequality of income.

C) Subsidies pose a burden to taxpayers and support inefficient businesses.

D) Quotas are more regressive than tariffs.

E) The demand for the products made by the incubated industries would not be known.

please explain
Show more


C.


A: We don't care about animosity amongst other nations. Irrelevant
B: We are interested in "reduce the amount of imports and therefore improve the nation's balance of trade". The argument says nothing about inequality of wealth distribution or about creation of millionaires. Out
C: "inefficient businesses" are counterproductive to what the argument claims to be a result of this approach "strong domestic industries". Therefore C hits the nail on the head.
D: The effect of quotas and tariffs would have to be guessed, since the argument does not say what their effect is. Too vague.
E contradicts one of the premises, and cannot be true.



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Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
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