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To protect certain fledgling industries, the government of country Z b

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mbawaters
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To protect certain fledgling industries, the government of country Z b [#permalink] New post  Updated on: 08 Apr 2019, 02:45
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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 Z's 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 Z's exports went.

(D) Those products had become more and more expensive to import, which resulted in a foreign trade deficit just before the ban.

(E) Those products used to be imported in very small quantities, but they were essential to country Z's economy.


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Originally posted by mbawaters on 21 Jul 2008, 11:51.
Last edited by Bunuel on 08 Apr 2019, 02:45, edited 1 time in total.
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jallenmorris
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Re: To protect certain fledgling industries, the government of country Z b [#permalink] New post  21 Jul 2008, 12:05
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A. See explanation next to each answer...

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.
If this were not true, then the effect on the exporting industries would not have been so severe, and the ban would not have even been necessary. If this is untrue, then products that would be imported would be more expensive, and the domestic products would be cheaper. Those industries using the product in manufacturing would use the domestic products and the fledgling industries wouldn't be fledgling, they'd be the supplier for other industries already. Answer has to be A.
B. Those products were ones that country Z was hoping to export in its turn, once the fledgling industries matured.
This is not supported. The stem talks about several export-dependent industries, but that does not mean these particular products were intended for export.
C. Those products used to be imported from just those countries to which country Zs exports went.
This goes beyond the stem. The stem says "export markets", it does not say anything about where the exports from Z went.
D. Those products had become more and more expensive to import, which resulted in aforeign trade deficit just before the ban.
Way beyond anything stated in the stem. No one said anything about the products expense becoming higher. The only thing stated was that the country created ban on those imports used by other industries exporting their end product which used the now-banned product in manufacturing.
E. Those products used to be imported in very small quantities, but they were essential tocountry Zs economy.
Never says this.
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Re: To protect certain fledgling industries, the government of country Z b [#permalink] New post  25 May 2011, 05:57
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I know this has been discussed a million times. Even I got this correct. But M just a little skeptical that are we not being asked to infer too much here. Are we not required to limit our answer selection in inference question only to the information in the premises presented in the passage ?
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Re: To protect certain fledgling industries, the government of country Z b [#permalink] New post  25 May 2011, 07:34
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choice A gives the reason / hidden assumption behind the cost going up due to the ban posed on the import of such products.

A it is.
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Re: To protect certain fledgling industries, the government of country Z b [#permalink] New post  17 Jun 2011, 12:09
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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........
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Re: To protect certain fledgling industries, the government of country Z b [#permalink] New post  04 Aug 2015, 21:26
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So this question basically talks about two types of industries.

1)Local Fledgling Industries
2)Export Dependent Industries,who are being forced to buy products from local industries now.

Government puts a ban on importing products which are being made by the local fledgling industries -->Cost of the those products increases as the competition decreases.Hence the (2)Export dependent industries have a problem competing as now they have to buy the same product at an inflated cost, which makes them less profitable.

Ans is A
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Re: To protect certain fledgling industries, the government of country Z b [#permalink] New post  30 Apr 2017, 01:43
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For the 2nd line, shouldn't the 2nd coma be "and" ?
Which industries is referred to by "those"?

"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."
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Re: To protect certain fledgling industries, the government of country Z b [#permalink] New post  30 Apr 2017, 05:01
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To protect certain fledgling industries, the government of country Z banned imports of the types of products those (FLEDGLING INDUSTRIES) 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 (export-dependent industries in Z) industries to compete effectively in their export markets.

CAUSE
Purpose of government of country Z: To protect certain fledgling industries
Action taken by the government to achieve their purpose: the government of country Z banned imports of the types of products those (FLEDGLING INDUSTRIES) industries were starting to make.

EFFECT

Result: the cost of those products to the buyers, several export-dependent industries in Z, went up, sharply limiting the ability of those (export-dependent industries in Z) industries to compete effectively in their export markets.
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Re: To protect certain fledgling industries, the government of country Z b [#permalink] New post  02 Mar 2020, 04:03
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Suppose you are building a product that costs 10$ and you import the same product that costs 7$ Now, if imports are not stopped, then your product becomes hard to sell.
But what has happened now that the customers are forced to buy the 10$ product. Now this product has to be exported and since the cost has gone up, the duty added in the buyer country will even hurt the buyer more.And they will not prefer the more costly product. So, in a way the argument says that if the imported products were allowed that would have been better rather than making the product in Z's fledgling industries.

Option A becomes the answer.


(A) Those products had been cheaper to import than they were to make within country Z's fledgling industries.


Quote:
(B) Those products were ones that country Z was hoping to export in its turn, once the fledgling industries matured.

This is a far fetched inference. Eliminated

Quote:
(C) Those products used to be imported from just those countries to which country Z's exports went.

We do not get any idea from the argument of such exchange. Eliminated

Quote:
(D) Those products had become more and more expensive to import, which resulted in a foreign trade deficit just before the ban.

Trade deficit is bringing in outside knowledge. Do you know which country are they talking about? NO. Eliminated

Quote:
(E) Those products used to be imported in very small quantities, but they were essential to country Z's economy.

Again, how do we know that they were essential to Z's economy. Eliminated
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Re: To protect certain fledgling industries, the government of country Z b [#permalink] New post  22 Jul 2020, 10:04
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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 Z's fledgling industries.

Since it is banned to import these products, buyers in export-dependent industries have to buy these products within the country Z. We know from the passage that these buyers are paying more for the products. Therefore, we can infer that the products made in country Z is more expensive than the imports which buyers used to purchase for a lower price.

(B) Those products were ones that country Z was hoping to export in its turn, once the fledgling industries matured.

We know Z has been relied on imports on these products before. But we do not know whether country Z is going to export these products or not in the future.

(C) Those products used to be imported from just those countries to which country Z's exports went.

This is a minor detail of the export : where the export came from or went. This is the detail we do not know, or in other words, cannot be inferred from the passage.

(D) Those products had become more and more expensive to import, which resulted in a foreign trade deficit just before the ban.

We do not know whether these products will become more expensive, nor it can be inferred. In addition, we can infer that the import should be cheap, but D is saying that it is expensive.

(E) Those products used to be imported in very small quantities, but they were essential to country Z's economy.

We do not know if it was essential to the economy nor inferred this from the passage.
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To protect certain fledgling industries, the government of country Z b [#permalink] New post  28 Nov 2020, 03:32
Hi IanStewart

Could you please help with this question?


We are only told that "several export-dependent industries" are paying higher prices for products made in country Z than those for imported ones.

Let's say that fledgling industries spend $50 to make some product and sell it for $100, whereas an imported product costs $80.
Export-dependent industries are paying higher prices for the products made in country Z. If my reasoning is correct, then A cannot be correct.

So, How can we conclude (A) ?

I think (A) should say that
Those products had been cheaper to import than they were to buy from country Z's fledgling industries.

Could you please explain Why (A) is correct?

Thank you very much beforehand!
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To protect certain fledgling industries, the government of country Z b [#permalink] New post  28 Nov 2020, 05:04
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Ilhomjon98 wrote:
I think (A) should say that
Those products had been cheaper to import than they were to buy from country Z's fledgling industries.

Could you please explain Why (A) is correct?


Yes, you make a good point -- all we can infer is that the cost to buy these products became higher within country Z after their import was banned. So the sales price of those products is higher when the products are made domestically than when they are imported. Answer A bizarrely seems to compare the sales price of an imported product with the cost to manufacture the product domestically, but that manufacturing cost isn't what matters here -- what matters is how much the product sells for.

So answer A really should be better-worded. I'd still choose it, since answers B through E are clearly not valid inferences, and A could perhaps be valid if you interpret "to make within" in a very liberal way. Still, this is a very old question, written by the previous test developer, and I find the newer questions are generally higher-quality (both in Quant and in Verbal), so you hopefully won't see any current questions with similarly problematic "correct" answers.
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Re: To protect certain fledgling industries, the government of country Z b [#permalink] New post  29 Dec 2022, 00:25
“Starting to make” threw me off because it could mean they don’t have enough capacity yet to mean demand and haven’t fully started

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Re: To protect certain fledgling industries, the government of country Z b [#permalink]
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