GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

 It is currently 16 Feb 2020, 22:18

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

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

Author Message
TAGS:

### Hide Tags

Manager
Joined: 07 Jan 2008
Posts: 197
To protect certain fledgling industries, the government of country Z b  [#permalink]

### Show Tags

Updated on: 08 Apr 2019, 02:45
7
49
00:00

Difficulty:

15% (low)

Question Stats:

79% (01:50) correct 21% (02:16) wrong based on 1846 sessions

### HideShow timer Statistics

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.

Source : GMATPREP Default Exam Pack
Another question based on the same passage: https://gmatclub.com/forum/to-protect-c ... 12491.html

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.
Edited the question.
SVP
Joined: 30 Apr 2008
Posts: 1565
Location: Oklahoma City
Schools: Hard Knocks
Re: To protect certain fledgling industries, the government of country Z b  [#permalink]

### Show Tags

21 Jul 2008, 12:05
12
4
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.
##### General Discussion
Intern
Joined: 26 May 2014
Posts: 38
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Re: To protect certain fledgling industries, the government of country Z b  [#permalink]

### Show Tags

04 Aug 2015, 21:26
4
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
Manager
Status: ==GMAT Ninja==
Joined: 08 Jan 2011
Posts: 171
Schools: ISB, IIMA ,SP Jain , XLRI
WE 1: Aditya Birla Group (sales)
WE 2: Saint Gobain Group (sales)
Re: To protect certain fledgling industries, the government of country Z b  [#permalink]

### Show Tags

17 Jun 2011, 12:09
2
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.

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.

Director
Status: There is always something new !!
Affiliations: PMI,QAI Global,eXampleCG
Joined: 08 May 2009
Posts: 774
Re: To protect certain fledgling industries, the government of country Z b  [#permalink]

### Show Tags

25 May 2011, 07:34
1
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.
Intern
Joined: 25 Aug 2013
Posts: 12
Location: India
Concentration: Finance, Marketing
GPA: 2.94
WE: Engineering (Manufacturing)
Re: To protect certain fledgling industries, the government of country Z b  [#permalink]

### Show Tags

30 Apr 2017, 01:43
1
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."
Director
Joined: 02 Sep 2016
Posts: 633
Re: To protect certain fledgling industries, the government of country Z b  [#permalink]

### Show Tags

30 Apr 2017, 05:01
1
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.
Manager
Affiliations: The Earth organization, India
Joined: 25 Dec 2010
Posts: 177
WE 1: SAP consultant-IT 2 years
WE 2: Entrepreneur-family business 2 years
Re: To protect certain fledgling industries, the government of country Z b  [#permalink]

### Show Tags

25 May 2011, 05:57
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 ?
Senior RC Moderator
Joined: 02 Nov 2016
Posts: 5035
GPA: 3.39
Re: To protect certain fledgling industries, the government of country Z b  [#permalink]

### Show Tags

20 Nov 2018, 23:02
A tag of: "Source: Official Guide" should be added.
_________________
Non-Human User
Joined: 01 Oct 2013
Posts: 8320
Re: To protect certain fledgling industries, the government of country Z b  [#permalink]

### Show Tags

27 Dec 2019, 01:58
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: To protect certain fledgling industries, the government of country Z b   [#permalink] 27 Dec 2019, 01:58
Display posts from previous: Sort by