The country of Sacchar can best solve its current trade deficit problem by lowering the price of sugar, its primary export. Such an action would make Sacchar better able to compete for markets with other sugar-exporting countries. The sale of Sacchar’s sugar abroad would increase, and this increase would substantially reduce Sacchar’s trade deficit.
Author is making an argument that in-order to reduce the current trade deficit, country of Sacchar should lower the price of sugar, which will help it compete with other sugar-exporting countries. This will lead to increase in sugar export, hence helping Sacchar reduce it's trade deficit. This argument seems to be correct initially, but there are lot of other factors which should be taken into consideration before Sacchar takes this decision.
Firstly, If Sacchar lowers the price of sugar below the amount required by farmers to even earn a penny profit, then farmers will stop growing it which will be very detrimental for Sacchar as sugar is its primary export. Instead of reducing the trade deficit, this will lead to increase in trade deficit and in long run my ruin Sacchar's economy. Sacchar should first analyze what is the minimum amount required by farmers to even sustain, then based upon this analysis, it should take a decision.
Secondly, if Sacchar reduces its sugar price, other sugar-exporting countries will follow the same path in-order to not lose their market. End result will be, sugar-exporting countries exporting the same amount of sugar but at reduced price. Net result, increased trade deficit instead of reduced trade deficit. There can be another scenario, where Sacchar is able to increase its sugar export but the total income remains the same. For example, before reducing the price it was exporting 100 units of sugar at price of 10 unit, total income will be 1000. Now it reduced the price to 5 unit, but is exporting 200 units, end result, same revenue from sugar export. This will not have any effect on trade deficit, but this will destroy the poor farmers, their total income will reduce and they will be less motivated to grow sugar in the future. If this happens, sugar-export will decline in future leading to increased trade deficit.
Thirdly, may be the market is currently saturated, there is not enough demand for more sugar in the market. Sacchar should analyze the market before reducing the prize. If there is no demand for increased export, then reducing the price won't change anything for Sacchar. After reducing the prize it will be just exporting same quantity of sugar at reduced price and this will widen its trade deficit instead of decreasing it.
Hence, based upon the reason stated above, the argument given by the author is flawed. Just blindly decreasing the price won't help Sacchar. It should carefully anaylze the market and farmers condition before taking any abrupt decision.
| Post date | Users | Rates | Link to Content |
|---|---|---|---|
| 2016-10-02 | spartan21 | 50 | view |
| 2016-08-24 | Madridista | 58 | view |
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Grammar and spelling errors:
Line 1, column 152, Rule ID: IT_VBZ[1]
Message: Did you mean 'competes'?
Suggestion: competes
... the price of sugar, which will help it compete with other sugar-exporting countries. T...
^^^^^^^
Discourse Markers used:
['but', 'first', 'firstly', 'hence', 'if', 'may', 'second', 'secondly', 'so', 'then', 'third', 'thirdly', 'for example']
Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments
Performance in Part of Speech:
Nouns: 0.259023354565 0.25644967241 101% => OK
Verbs: 0.169851380042 0.15541462614 109% => OK
Adjectives: 0.0743099787686 0.0836205057962 89% => OK
Adverbs: 0.0509554140127 0.0520304965353 98% => OK
Pronouns: 0.036093418259 0.0272364105082 133% => Less pronouns wanted. Try not to use 'you, I, they, he...' as the subject of a sentence
Prepositions: 0.0976645435244 0.125424944231 78% => OK
Participles: 0.0552016985138 0.0416121511921 133% => OK
Conjunctions: 2.38791282495 2.79052419416 86% => OK
Infinitives: 0.0233545647558 0.026700313972 87% => OK
Particles: 0.0 0.001811407834 0% => OK
Determiners: 0.0870488322718 0.113004496875 77% => OK
Modal_auxiliary: 0.0488322717622 0.0255425247493 191% => Less modal verbs wanted (like 'must , shall , will , should , would , can , could , may , and might').
WH_determiners: 0.0127388535032 0.0127820249294 100% => OK
Vocabulary words and sentences:
No of characters: 2549.0 2731.13054187 93% => OK
No of words: 423.0 446.07635468 95% => OK
Chars per words: 6.02600472813 6.12365571057 98% => OK
Fourth root words length: 4.53508145475 4.57801047555 99% => OK
words length more than 5 chars: 0.385342789598 0.378187486979 102% => OK
words length more than 6 chars: 0.276595744681 0.287650121315 96% => OK
words length more than 7 chars: 0.148936170213 0.208842608468 71% => OK
words length more than 8 chars: 0.0709219858156 0.135150697306 52% => OK
Word Length SD: 2.38791282495 2.79052419416 86% => OK
Unique words: 189.0 207.018472906 91% => OK
Unique words percentage: 0.446808510638 0.469332199767 95% => OK
Word variations: 48.3548782196 52.1807786196 93% => OK
How many sentences: 21.0 20.039408867 105% => OK
Sentence length: 20.1428571429 23.2022227129 87% => OK
Sentence length SD: 42.7877215524 57.7814097925 74% => OK
Chars per sentence: 121.380952381 141.986410481 85% => OK
Words per sentence: 20.1428571429 23.2022227129 87% => OK
Discourse Markers: 0.619047619048 0.724660767414 85% => OK
Paragraphs: 5.0 5.14285714286 97% => OK
Language errors: 1.0 3.58251231527 28% => OK
Readability: 47.8024316109 51.9672348444 92% => OK
Elegance: 1.60330578512 1.8405768891 87% => OK
Coherence and Cohesion:
Essay topic to essay body coherence: 0.468450429183 0.441005458295 106% => OK
Sentence sentence coherence: 0.12424597484 0.135418324435 92% => OK
Sentence sentence coherence SD: 0.0957882224637 0.0829849096947 115% => OK
Sentence paragraph coherence: 0.545218035855 0.58762219726 93% => OK
Sentence paragraph coherence SD: 0.099345094098 0.147661913831 67% => OK
Sentence topic coherence: 0.195500123472 0.193483328276 101% => OK
Sentence topic coherence SD: 0.0903581643666 0.0970749176394 93% => OK
Paragraph paragraph coherence: 0.439670299913 0.42659136922 103% => OK
Paragraph paragraph coherence SD: 0.051550624139 0.0774707102158 67% => OK
Paragraph topic coherence: 0.325723849751 0.312017818177 104% => OK
Paragraph topic coherence SD: 0.0672348410807 0.0698173142475 96% => OK
Task Achievement:
Sentences with positive sentiment : 8.0 8.33743842365 96% => OK
Sentences with negative sentiment : 9.0 6.87684729064 131% => OK
Sentences with neutral sentiment: 4.0 4.82512315271 83% => OK
Positive topic words: 3.0 6.46551724138 46% => OK
Negative topic words: 7.0 5.36822660099 130% => OK
Neutral topic words: 0.0 2.82389162562 0% => More neutral topic words wanted.
Total topic words: 10.0 14.657635468 68% => OK
What are sentences with positive/Negative/neutral sentiment?
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Rates: 50.0 out of 100
Scores by essay e-grader: 3.0 Out of 6 -- The score is based on the average performance of 20,000 argument essays. This e-grader is not smart enough to check on arguments.
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Note: This is not the final score. The e-grader does NOT examine the meaning of words and ideas. VIP users will receive further evaluations by advanced module of e-grader and human graders.