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Arguments evaluation (exports vs. domestic insufficiency): Should India encourage exports even when many goods are insufficient for internal use? Consider the arguments—(I) Yes: foreign exchange is required to pay for essential imports; (II) No: even selective export encouragement would create shortages—and judge which are strong on logic and relevance.

Difficulty: Medium

Correct Answer: Only argument I is strong

Explanation:


Given data

  • Question: Encourage exports despite internal insufficiency?
  • Argument I: Yes, to earn foreign exchange for imports.
  • Argument II: No, because even selective exports would cause shortages.


Concept / Approach
A strong argument is relevant, fact-linked, and not excessively absolute. Macroeconomic needs (forex for critical imports) can justify exports even amid scarcity if managed selectively.


Step-by-step evaluation
Step 1: I is pragmatic and policy-grounded: economies need foreign exchange for oil, technology, medicines, etc.Step 2: II is an absolute claim that any selective encouragement necessarily creates shortages; it ignores policy levers (export quotas, seasonal timing, differentiated goods).Step 3: Therefore, only I stands as a strong argument.


Verification / Alternative
Countries commonly balance domestic supply with export earnings using calibrated regimes; this aligns with I and weakens II's blanket assertion.


Common pitfalls

  • Assuming exports and domestic availability are zero-sum without policy calibration.


Final Answer
Only argument I is strong.

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