Exporters in Country X are facing lower revenues due to a shortage of the large metal shipping containers in which...

GMAT Critical Reasoning : (CR) Questions

Source: Official Guide

Critical Reasoning

Logically Completes

MEDIUM

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Notes

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Exporters in Country X are facing lower revenues due to a shortage of the large metal shipping containers in which they send their goods by sea to other countries. Fewer containers arrive in Country X due to reductions in imports. This has meant lost orders, costly delays, and a scramble for alternatives, such as air freight, all of which are costlier. Moreover, the revenues of exporters in Country X will probably continue to decline in the near future. This is because other countries are likely to find it increasingly unprofitable to export their goods to Country X, and because ________.

Which of the following would most logically complete the passage?

production of shipping containers in Country X is growing rapidly as a response to the shortage

shipping companies are willing to move containers from country to country only when the containers are full

the cost of shipping alternatives such as air freight is likely to stabilize in the near future

consumers in Country X are purchasing more products than ever before

the worldwide demand for goods made in Country X has only recently begun to rise after a long decline

Solution

Passage Analysis:

Text from Passage	Analysis
Exporters in Country X are facing lower revenues due to a shortage of the large metal shipping containers in which they send their goods by sea to other countries.	What it says: Exporters in Country X are making less money because they can't get enough big metal shipping containers for overseas shipping What it does: Sets up the main problem - introduces the revenue decline and its cause What it is: Author's problem statement Visualization: Before: 100 containers available → Exporters revenue: $100,000 Now: 60 containers available → Exporters revenue: $80,000
Fewer containers arrive in Country X due to reductions in imports.	What it says: The container shortage happens because Country X is importing less stuff from other countries What it does: Explains the root cause behind the container shortage mentioned in the first statement What it is: Author's causal explanation Visualization: Imports to Country X: Before: 100 shipments bring 100 containers Now: 60 shipments bring only 60 containers Result: Fewer containers available for exports
This has meant lost orders, costly delays, and a scramble for alternatives, such as air freight, all of which are costlier.	What it says: The container shortage causes exporters to lose business, face delays, and use expensive alternatives like air shipping What it does: Details the specific negative consequences that result from the container shortage What it is: Author's consequence description Visualization: Container shortage effects: Lost orders: -20 orders per month Delays: +2 weeks shipping time Air freight: $5,000 vs $1,000 (sea freight)
Moreover, the revenues of exporters in Country X will probably continue to decline in the near future.	What it says: Things will likely get worse for exporters - their revenues will keep dropping What it does: Shifts from describing current problems to predicting future decline What it is: Author's prediction/forecast Visualization: Revenue trend: Current: $80,000 (down from $100,000) Near future: $60,000 (continuing downward)
This is because other countries are likely to find it increasingly unprofitable to export their goods to Country X, and because _______.	What it says: The future revenue decline will happen because other countries won't want to export to Country X anymore, plus another reason we need to identify What it does: Starts explaining the reasoning behind the future decline prediction and sets up a blank for completion What it is: Author's partial causal reasoning with completion required

Argument Flow:

We start with a current problem (container shortage causing revenue decline), then get the root cause (fewer imports), followed by detailed consequences (lost orders, delays, costly alternatives), and finally a future prediction (continued decline) with partial reasoning that needs completion.

Main Conclusion:

The revenues of exporters in Country X will probably continue to decline in the near future.

Logical Structure:

The argument builds a causal chain: reduced imports → fewer containers → current export problems → future revenue decline. The conclusion about future decline is supported by one stated reason (other countries finding it unprofitable to export to Country X) plus a second reason that we need to identify to complete the logical structure.

Prethinking:

Question type:

Logically Completes - We need to find a statement that logically follows from the established pattern and completes the author's reasoning about why exporter revenues will continue declining

Precision of Claims

The argument establishes a cyclical relationship: fewer imports → fewer containers → higher export costs → declining revenues. The completion must address how this cycle perpetuates or worsens

Strategy

Look for a statement that explains the second reason (after 'and because') why exporter revenues will continue declining. This should connect logically to the established cycle - either showing how the container shortage will persist/worsen, or how the existing problems will create additional negative effects that compound the revenue decline

Answer Choices Explained

production of shipping containers in Country X is growing rapidly as a response to the shortage

This actually contradicts the argument's prediction. If container production is growing rapidly, this would help solve the container shortage problem and potentially improve exporter revenues, not cause them to continue declining. This goes against the logical flow that we need a reason supporting continued decline.

shipping companies are willing to move containers from country to country only when the containers are full

This perfectly explains the self-perpetuating nature of the problem. Since Country X has reduced imports, there's less cargo to fill containers for return trips. So even when containers leave Country X full of exports, they won't come back because shipping companies won't send empty containers. This creates a cycle where the container shortage gets worse over time, strongly supporting the prediction of continued export revenue decline.

the cost of shipping alternatives such as air freight is likely to stabilize in the near future

Stabilizing costs for alternatives might actually help exporters by making their backup options more predictable and potentially affordable. This doesn't support the argument's prediction that revenues will continue declining - if anything, it suggests some relief from the current cost pressures.

consumers in Country X are purchasing more products than ever before

This describes domestic consumption, which doesn't directly relate to the export container shortage problem. More importantly, increased consumer purchasing doesn't explain why export revenues would continue declining - the argument is specifically about exporters selling goods to other countries, not domestic sales.

the worldwide demand for goods made in Country X has only recently begun to rise after a long decline

Rising worldwide demand for Country X's goods would actually be positive for exporters and contradict the prediction of continued revenue decline. If demand is increasing, exporters should theoretically see improving revenues, not declining ones, making this choice illogical for completing the argument.

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