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Question

Statement : Should import duty on all the electronic goods be dispensed with?
Arguments :
I. No. This will considerably reduce the income of the government and will adversely affect the development activities.
II. No. The local manufacturers will not be able to compete with the foreign manufacturers who are technologically far superior.


A
Only argument I is strong
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B
Only argument II is strong
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C
Either I or II is strong
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D
Neither I nor II is strong
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E
Both I and II are strong
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Solution

The correct option is B Only argument II is strong
Should import duty on all the electronic goods be dispensed with?
If import duty is abolished then, the cost of goods will reduce. Higher technology goods are then available at very nominal rates as compared to indian goods. then everyone will prefer foreign goods. It will adversely affect local manufactures.
Thus, argument I is strong.
Argument I is not providing justification.
Hence, Option B is correct.

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