ExpertsGlobal5
To safeguard the rights of certain vulnerable groups of workers, Sarinia’s government imposed strict minimum wage and employee safety regulations. As a direct result, the operating costs of several export dependent industries in Sarinia increased dramatically, sharply hindering those industries in competing effectively in their export markets.
Which of the following conclusions about Sarinia’s adversely affected export-dependent industries is best supported by the passage?
A. Those industries successfully expanded their products’ domestic market.
B. Those industries had to contend with the loosening of employee safety and minimum wage regulations by other countries.
C. Those industries’ profit margins were not high enough to absorb the rise in costs mentioned above.
D. Those industries took steps to offset rising labor costs by decreasing material costs.
E. Those industries started to expand into export markets that they had once considered unprofitable.
To safeguard the interest of a vulnerable group. So, there exists a group which is vulnerable under the current circumstances.
The Sarinia’s government came up with a new plan to safeguard these vulnerable groups, by bringing strict minimum wage, and employee safety regulations.
The outcome of the new measures are as follows :
1. operating cost of several export dependent industries in Sarinia increased dramatically.
2. Hindering the competitiveness of companies in export market.
The options for conclusions are :
A. Those industries successfully expanded their products’ domestic market.
Here, the term hindering refers to negative situations that have risen due to new regulations. Hence, wrong.
B. Those industries had to contend with the loosening of employee safety and minimum wage regulations by other countries.
Comparison with another country is not being discussed in place. The entire question is about Sarinia’s government, the steps taken, and impact in export market companies. Hence, wrong.
C. Those industries’ profit margins were not high enough to absorb the rise in costs mentioned above.This is the correct conclusion, as the question previously mentions the rising costs, and the dipping profits. The companies are hindering, as they cannot cope up with the losses incurred.
D. Those industries took steps to offset rising labor costs by decreasing material costs.
This happens, when we have a clue that the situation is reversing or has changed to a positive note. Hence, wrong.
E. Those industries started to expand into export markets that they had once considered unprofitable.
This can be a future plan by the companies to combat this trend. But, no clues have been given that the shift is taking place in the direction which option mentions. Hence, wrong.
Option C