Question

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.

Answer 1

Answer;

A

Explanation:

two types of industries are made mention of in this question.

1)Local Fledgling Industries

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

Since the Government has placed a ban on the importation of the products that are being made by the local fledgling industries. The implication of this is that:

1. Buyers of those import products will experience a rise in the Cost of those products as the competition faced by the Fledging industries decreases.

2. Competing becomes difficult for Export dependent industries. This is because of inflation. They now have to buy the same product at an inflated cost, thereby reducing profits.

Answer 2

Answer:

The correct option is A,those products had been cheaper to import than they were to make within country Z's fledgling industries.

Explanation:

Protecting infant industries is one strategy the government might favor in order to ensure reduction in the level of unemployment in the economy.

Judging from the scenario, the fact that the cost of the products to the buyers increased implies that the locally-made one is more expensive than the imported one,hence the fledgling ,immature industries could not compete favorably with their foreign counterparts in terms of pricing,which necessitated government to wade in to save the fledgling industries from going under.

Besides,the cost of  the  product of export-dependent industries in Z ,increased due to increase in price of their input which they have to source from the fledgling industries,thereby making them less competitive in the export markets.