OG12-66
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 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.
这道题该怎么理解？作者: handapink 时间: 2011-6-20 21:32
This is an inference question. Inference question is a Must-Be-True type of question, which is 100% true based on the stimulus. In other words, if stimulus is right, the answer for an inference question MUST be right. Choice A is 100% true based on the stimulus.
"Those industries" refer to "export-dependent industries in Z" since both phrases are in the same sentence.
If the export-dependent industries in Z cannot compete effectively due to the rising cost of the imported product, surely answer A describes one possible reason.作者: kobemvp 时间: 2011-6-21 06:32
Profit margin can be explained as how much you can get from the sell after you pay all the cost. The passage says that because Country Z wanted to protect some industries, so it banned those products from outside. It makes the source of the products that these industries produce become smaller. Demand of that product was still the same, but the supply decreased, so the prices of those products went up.
To the buyers who needed those products to make things to sell out of Country Z, their cost went up.
The passage points out that the result was "Those export-dependent industries lost ability to compete effectively in their export markets." Which means those export-dependent industries needed to rise their price of their products because of the cost rise. Clearly, once you rise the price of your products, it is harder to sell them. Therefore, no one wants to rise their price and lose ability to compete if there is any option.
A. states that, those industries lost the ability to compete( rise their price) becuase "Profit margins in those industries were not high enough to absorb the rise in costs mentioned above"
For example, you sell ice cream, the price is $5, cost of milk $1, other expense $1. you earn $3 everytime.(profit margin)
However, one day, the cost of milk rises to $4, you earn nothing now because your profit margin is not high enough to absorb the rise in cost. So you need to rise your ice cream price and lose your competition ability (while other people still sell $5 ice cream) without choice.作者: season5924 时间: 2011-6-22 20:25
哈哈哈，楼上的真清楚。让我想明白了limiting the ability of those industries to compete的真正内在含义结果是涨价引起的！谢谢~~~
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