40. The author of this article argues that the country of Sacchar can best solve its
current trade deficit problem by lowering the price of its main export, sugar. The line of
reasoning is that this action would make Sacchar more competitive with other sugar-
exporting countries, thereby increasing sales of Sacchars sugar abroad and, in turn,
substantially reducing the trade-deficit. This line of reasoning is unconvincing for a
couple of reasons.
In the first place, this argument is based on an oversimplified analysis of the trade
deficit problem Sacchar currently faces. A trade-deficit occurs when a country spends
more on imports than it earns from exports. The authors argument relies on the
assumption that earnings from imports will remain constant. However, the author
provides no evidence that substantiates this assumption. It is possible that revenues from
imports will increase dramatically in the near future; if so, the course of action proposed
by the author might be unnecessary to solve Sacchars trade deficit problem. Conversely,
it is possible that revenues from imports are likely to decrease dramatically in the near
future. To the extent that this is the case, lowering sugar prices may have a negligible
countervailing effect, depending on the demand for Sacchars sugar.
In the second place, increasing sales by lowering the price of sugar will not yield
an increase in income unless the increase in sales is sufficient to overcome the loss in
income due to the lower price. This raises three questions the author fails to address.
First, will a price decrease in fact stimulate demand? Second, is demand sufficient to
meet the increase in supply? Third, can Sacchar increase the sugar production
sufficiently to overcome the deficit? In the absence of answers to these questions, we
cannot assess the authors proposal.
In conclusion, the author provides an incomplete analysis of the problem and, as a
result, provides a questionable solution. To better evaluate the proposal, we would need
to know how revenues from imports are likely to change in the future. To strengthen the
argument, the author must provide evidence that demand is sufficient to meet the
proposed increase in supply, and that Sacchar has sufficient resources to accommodate
新概念英语第一册 Lesson 85:Pairs in the spring
新概念英语第一册 Lesson 125:Tea for two
新概念英语第一册 Lesson 137:A pleasant dream
新概念英语第一册 Lesson 81:Roast beef and potatoes
新概念英语第一册 Lesson 99:Owl
新概念英语第一册 Lesson 67:The weekend
新概念英语第一册 Lesson 109:A good idea
新概念英语第一册 Lesson 53:An interesting climate
新概念英语第一册 Lesson 135: The latest report
新概念英语第一册 Lesson 41:Penny’s bag
新概念英语第一册 Lesson 117: Tommy’s breakfast
新概念英语第一册 Lesson 39:Don’t drop it
新概念英语第一册 Lesson 95:Tickets,please
新概念英语第一册 Lesson 65:Not a baby
新概念英语第一册 Lesson 83:Going on holiday
新概念英语第一册 Lesson 93:Our new neighbour
新概念英语第一册 Lesson 63:Thank you,doctor
新概念英语第一册 Lesson 87:A car crash
新概念英语第一册 Lesson 61:A bad cold
新概念英语第一册 Lesson 75:Uncomfortable shoes
新概念英语第一册 Lesson 121:The man in the hat
新概念英语第一册 Lesson 69:The car race 汽车比赛
新概念英语第一册 Lesson 107:It’s too small
新概念英语第一册 Lesson 119:A true story
新概念英语第一册 Lesson 51:A pleasant climate
新概念英语第一册 Lesson 59:Is that all
新概念英语第一册 Lesson 111:The most expensive model
新概念英语第一册 Lesson 49:At the butcher’s
新概念英语第一册 Lesson 133:Sensational news
新概念英语第一册 Lesson 45:The boss’s letter
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