Economist: Owing to global economies forces since 1945, our country's economy is increasingly a service economy, in w...

Meghan on September 18 at 09:33PM

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Can this question and the correct answer be explained

1 Reply

Irina on September 18 at 11:56PM

@megmcdermott,

The argument tells that our country's economy is increasingly a service economy, in which manufacturing employes a small fraction of the workforce. The argument then concludes that the country is increasingly disengaged in the international trade.

The question requires us to identify a statement that strengthens the argument and fills an obvious gap between the service-based economy and disengagement in international trade. The correct answer choice (C) tells us that because services are delivered in person, markets for services tend to be local. This fact allows us to conclude that since services are typically traded domestically, a country with a service-based economy is likely to engage less in international trade.

Let me know if this makes sense and if you have any further questions.