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.
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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: 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 / ApproachA 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 evaluationStep 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 / AlternativeCountries 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 AnswerOnly argument I is strong.