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Question:

Each of the questions below consists of a set of labelled sentences. These sentences, when properly sequenced, form a coherent paragraph. Choose the most logical order of sentences from the options.
I. Asian economies will need alternative sources of growth to compensate for the rapid fall in demand from the western markets.
II. But the crisis has exposed the limits of region’s dominant economic- growth model.
III. The export- led model that propelled many Asian economies so effectively for the past 30 years must be adapted to a different global economic context.
IV. Asia is less exposed to the financial turmoil than the west is, because Asian countries responded to the previous decade’s regional crisis by improving their current-account positions, accumulating reserves, and ensuring that their banking systems operated prudently.

Explanation:

Statement IV is the obvious introductory statement since it highlights the theme of the paragraph, which is how Asia is responding to the current economic crisis. Therefore, we can eliminate options 2, 3 and 4.
Statement II will follow - pointing out how the current crisis has exposed the flaws in the Asian countries’ economic growth model.
Statement I details what Asia needs to do- “alternative sources of growth” to compensate for the fall in demand from the West.
Statement III puts the economic model of Asian countries in proper perspective- “the export-led model” of Asian countries must be adapted to a different global context.
Hence, the correct answer is option 1.

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