Question

Statement: Should India encourage exports, when most things are insufficient for internal use itself?

Arguments:

1. Yes. We have to earn foreign exchange to pay for our imports.

2. No. Even selective encouragement would lead to shortages.

• A. Only argument I is strong
• B. Only argument II is strong
• C. Neither I nor II is strong
• D. Both I and II are strong

Answer 1

Answer:

A. Only argument I is strong

Clearly, India can export only the surplus and that which can be saved after fulfilling its own needs, to pay for its imports. Encouragement to export cannot lead to shortages as it shall provide the resources for imports. So, only argument I holds.