Export demand and profits linkage: steel producers posted considerable profit last year while many Asian countries imported large quantities from India — select the correct cause–effect relationship

Given data

• I: Most steel-producing companies made considerable profit last financial year.
• II: Many Asian countries imported huge quantities of steel from India.

Concept/Approach

Higher export demand at remunerative prices raises revenue and profits. Thus II provides a direct causal driver for I.

Step-by-step reasoning
1) Imports by Asian countries → elevated sales volume/price.2) Elevated revenue minus costs → higher profits.

Verification/Alternative

I causing II makes little sense; profits are an outcome, not a driver of foreign demand.

Common pitfalls

• Attributing both to an unspecified common cause when a clear demand->profit link exists.

Final Answer
Statement II is the cause and statement I is its effect.