ParadoxDiff: Medium

Logic Breakdown

Passage Summary: Since 1945, this country has moved from making things to providing services, and as a result, they aren't trading with other countries as much as they used to.

Conclusion: The country's transition to a service-based economy is the reason for its declining participation in international trade.

Reasoning: Manufacturing jobs are decreasing while the service sector grows, and this shift correlates with a reduction in trade.

Analysis: The core issue is why a service economy would trade less than a manufacturing one. To resolve this, we need a fact that distinguishes services from goods in the context of international commerce. Look for an answer that suggests services are harder to export or that the country's specific services are primarily consumed locally.

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7.

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

Correct Answer
C
C supplies the crucial bridge: if services are typically delivered in person, their markets are local, so a shift toward services naturally reduces engagement in international trade compared with manufacturing, which is more readily traded across borders.
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