mbawaters wrote:
To protect certain fledgling industries, the government of country Z banned imports of the types of products those industries were starting to make. As a direct result, the cost of those products to the buyers, several export-dependent industries in Z, went up, sharply limiting the ability of those industries to compete effectively in their export markets.
Which of the following can be most properly inferred from the passage about the products whose importation was banned?
A. Those products had been cheaper to import than they were to make within country Zs fledgling industries.
B. Those products were ones that country Z was hoping to export in its turn, once the fledgling industries matured.
C. Those products used to be imported from just those countries to which country Zs exports went.
D. Those products had become more and more expensive to import, which resulted in aforeign trade deficit just before the ban.
E. Those products used to be imported in very small quantities, but they were essential tocountry Zs economy.
answer to the question 1
I would go for A.
the question tells that in order to protect the domestic industries . the govt banned imports. which implies that import products were cheaper than domestic products, otherwise why will be the goverment try to protect the fledgling industries. . thus once these imports are stopped naturally the cost to the buyer/expoters will be high in the doemstic market.
A clearly brings this out.
now Question no 2 from the same passage
Which of the following conclusions about country Z’s adversely affected export-dependent industries is best supported by the passage?
(A) Profit margins in those industries were not high enough to absorb the rise in costs mentioned above.
(B) Those industries had to contend with the fact that other countries banned imports from country Z.
(C) Those industries succeeded in expanding the domestic market for their products.
(D) Steps to offset rising materials costs by decreasing labor costs were taken in those industries.
(E) Those industries started to move into export markets that they had previously judged unprofitable.
please post your replies........