Question

a student is researching the chinese governments 1992 shift to a market economy that emphasizes trade liberalization. one means of trade liberalization involves expanding from ordinary imports into an emphasis on processing imports, which have two types: processing with assembly (in which a firm obtains raw materials from a foreign trading partner without payment and sells the final goods to that partner, charging for assembly) and processing with imports (in which a firm spends capital to buy raw materials from a trading partner, processes them into final goods, and sells those goods to whichever trading partner it chooses). the student asserts that while initial efforts at trade liberalization were shaped by chinese firms limited capital, this situation resolved during the 2000s. which choice best describes data from the graph that supports the students assertion? a) processing imports with inputs were greater than ordinary imports and processing imports with assembly in 2006. b) processing imports with assembly were greater in 2006 than processing imports with inputs in 2000. c) from 2000 to 2006, processing imports with inputs rose much more sharply than processing imports with assembly did. d) from 2000 to 2006, neither processing imports with inputs nor processing imports with assembly were greater than ordinary imports.

Explanation:

Step1: Analyze the student's assertion

The student's assertion is that initial trade - liberalization efforts were limited by Chinese firms' capital (so they used processing with assembly, which requires less capital as the firm doesn't buy raw materials) and this was resolved in the 2000s (so processing with imports, which requires capital to buy raw materials, would grow more).

Step2: Analyze each option

• Option A:

Comparing processing imports with inputs to ordinary imports and processing imports with assembly in 2006 doesn't address the change over time related to the capital - related assertion.

• Option B:

Comparing processing imports with assembly in 2006 and processing imports with inputs in 2000 is an incorrect comparison. We need a time - series comparison for the same type of processing import.

• Option C:

If from 2000 to 2006, processing imports with inputs (which requires capital to buy raw materials) rose much more sharply than processing imports with assembly (which requires less capital), it shows that as the capital situation improved (resolving the initial capital - limitation), the more capital - intensive processing import (processing with inputs) grew more. This supports the student's assertion.

• Option D:

Comparing processing imports (both types) to ordinary imports doesn't relate to the change in the two types of processing imports over time which is key to the student's assertion about capital and its resolution.

Answer:

C. From 2000 to 2006, processing imports with inputs rose much more sharply than processing imports with assembly did.