Logical Reasoning

PT144 · S2 · Q7 Economist: Owing to global economic

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Economist: Owing to global economic forces since 1945, our country's economy is increasingly a service economy, in which manufacturing employs an ever smaller fraction of the workforce.

Given that ...

Since 1945, our country has increasingly become a service economy, decreasingly become a manufacturing economy.

Why is it that ...

We have engaged in less and less international trade?

Evaluate / Goal

We need to know something about manufacturing jobs that goes along with our country doing more international trade, something about service jobs that goes along with our country doing less international trade, or just something else that's been happening in the country since 1945 that has led to less international trade.

7.

Which one of the following, if true, would most help to explain the decreasing engagement in international trade by the economist's country?

  1. International trade agreements have usually

    No Distinction

    This makes manufacturing / services seem similar in relation to international trade. We need a reason why manufacturing was more associated with international trade, and why a service economy is less associated.

    5% picked this

  2. Employment in the service sector

    No Distinction

    Not only does this have no clear tie-in to international trade, but again this makes manufacturing / services seem similar. We're looking for a distinction between them, so that we can explain why the decline of manufacturing and rise of service jobs went along with less and less international trade.

    2% picked this

  3. Correct

    Because services are usually delivered

    Why this is right

    This provides a distinction between manufacturing and service jobs. It provides a reason why service jobs would be connected to less international trade, since it's saying that service jobs skew local. Service jobs are usually done in person, to the market for them (the people paying for service work) are usually local to the people performing the service. If you have a service job (travel agent / hostess / barista / etc.), you're probably performing that job for people in your country, not in some other country. Meanwhile, if you manufacture coffee grinders, you could have customers all over the world. Thus, as the economy has become less about manufacturing and more about services, there has been less and less international trade. There aren't foreign countries who want to hire us as their personal trainers, gardeners, or housekeepers.

    Skill tested: Paradox · how this choice captures the argument's function is the move to repeat next time.

    82% picked this

  4. Many manufacturing jobs have been

    Explains Background

    This helps to provide context for why the economy is decreasingly manufacturing, but we weren't trying to explain why manufacturing was on the decline. We need to explain why a decline in manufacturing (and surge of service jobs) translates into less international trade. This answer doesn't connect to international trade at all.

    7% picked this

  5. Some services can be procured

    Deepens Paradox

    This actually discusses times in which there would be international trade, for service jobs. The idea of procuring service jobs from some other country rather than from your own country is connecting service jobs to international trade. But we wanted an answer that helps us see why service jobs are connected to less international trade.

    5% picked this

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