When a country's currency depreciates rapidly, its export sector typically experiences a short-term surge in volume because its goods become cheaper for foreign buyers. However, if the country relies heavily on imported raw materials to manufacture those exports, the cost of producing the goods will soon rise, offsetting the initial competitive advantage. Last year, the nation of Valoria experienced a rapid currency depreciation. While Valoria's agricultural exports surged and remained highly competitive throughout the entire year, its electronics exports, which saw an initial surge, experienced a sharp decline in global competitiveness by the fourth quarter.
Which one of the following is most strongly supported by the information above?
- AThe short-term surge in the volume of Valoria's electronics exports caused a rapid increase in the cost of imported raw materials.
- Valoria's electronics manufacturing sector relies more heavily on imported raw materials than does its agricultural sector.Cevap
- CForeign buyers generally have a stronger underlying demand for Valoria's agricultural goods than for its electronic goods.
- DIf Valoria's currency had not depreciated rapidly last year, its agricultural exports would not have remained highly competitive.
- EAny Valorian export sector that experienced an initial surge in volume last year eventually saw a sharp decline in its global competitiveness.
Cevap
Valoria's electronics manufacturing sector relies more heavily on imported raw materials than does its agricultural sector.
The correct answer accurately synthesizes the general rule and the specific examples provided in the stimulus. The text states that a rapid currency depreciation's initial boost to exports is offset if the country relies heavily on imported raw materials. Because Valoria's electronics sector lost its competitive advantage while its agricultural sector retained it, the most logical inference supported by the text is that the electronics sector has a heavier reliance on imported raw materials.
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Anahtar Kavram
Synthesizing conditional rules with comparative case studies to derive an implied characteristic.