Critical reasoning — removing import duty on electronic goods: Should import duties on all electronic goods be fully dispensed with, considering the objection that it would sharply reduce government revenue and harm development programmes, and the further objection that domestic manufacturers would be unable to compete with technologically superior foreign producers?
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AOnly argument I is strong
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BOnly argument II is strong
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CEither I or II is strong
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DNeither I nor II is strong
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EBoth I and II are strong
Answer
Correct Answer: Both I and II are strong
Explanation
Given data
- Statement: Remove import duty on all electronic goods?
- Argument I (No): Government revenue would fall, undermining developmental activities.
- Argument II (No): Local manufacturers would not compete effectively against technologically superior imports.
Concept/Approach (multi-impact evaluation)A strong counter-argument may invoke fiscal impact and industrial capacity concerns. Both are directly relevant to a blanket duty removal.
Step-by-step evaluation1) Argument I: Tariff removal typically reduces customs revenue; given development relies partly on public funds, this is a pertinent objection.2) Argument II: Abrupt opening to superior foreign tech can injure nascent domestic firms; the competitiveness concern is relevant.
Verification/AlternativePhased reductions or targeted exemptions would usually be considered; the proposal here is across-the-board removal, so both objections hold.
Common pitfallsIgnoring either fiscal sustainability or strategic nurturing of domestic capability.
Final AnswerBoth I and II are strong.