Prices of sugar in international markets have gone up. Export traders see an opportunity of making profits. There are restrictions on exports of sugar. They approach government seeking relaxation of the export restrictions.
How can the psychological attitude of the exporters be characterised in this case?
1. It is cognitive since it is based on the knowledge that exports will increase country’s foreign exchange reserves.
2. It is based on ego-defence mechanism since it promotes their self-interest.
3. It is based on perception that circumstances afford an opportunity of entering into and stabilizing their position in foreign markets.
4. Their attitude is utilitarian since they are essentiallytrying to maximise theirprofits.
The first alternative is correct in noting that the exporters’ request is based on their knowledge of market conditions. But their attitude cannot be characterised in terms of increasing country’s forex reserves.
Answer choice(2) is incorrect. As we discussedin case 1, ego-defence mechanisms of an individual are connected with his self-image and not directly with promoting his self-interest.
The third alternative suggests one of the economic motives of the exporters. But it does not point to the immediate aim underlying their attitude.
Answer choice (4) is the correct one. As we have mentioned earlier, attitudes can be categorized, based on their functions, into four groups: utilitarian, knowledge, ego-defensive, and value-expressive. Broadly, utilitarian attitudes help people materially or in making gains and avoiding losses. They are based on self-interest.