BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
Live EA class + 6 months of EA OnDemand
  • Expert-led weekly online sessions
  • EA Masterclass access between classes
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

130-point score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

An interesting approach to reducing the UnitesStates_veritas

Expert replies
by conquistador » Wed Oct 21, 2015 10:23 am
An interesting approach to reducing the Unites States' trade deficit has been suggested: relax export restrictions to China. That this suggestion has come from the President of the People's Republic of China perhaps warrants some skepticism. That this idea is seconded by U.S. trade groups that represent aerospace, software, and microchip manufacturers, all of whom produce equipment that can be used for military purposes, also gives one pause. Despite some reforms, real and promised, China's "private" sector is too entangled with a government whose aims and actions are frequently at odds with U.S. policy and ideology.

To expedite "safe" trade with China, the U.S. has recently compiled a list of acceptable Chinese businesses with which our high-tech firms can trade. This replaces a system that required that exporters take the time-sometimes a considerable amount-to get licenses for the items they wished to export. Supposedly, the new system has stringent criteria that ensure that the Chinese firms will only use the imported goods for non-military purposes. Many of these products are, however, dual-purpose; they have military as well as commercial applications. Despite assurances that ground checks will prevent imported goods from being diverted for military purposes, China is simply too big, and the links between its companies and its government agencies too byzantine, for these assurances to be meaningful.

Another area in which trade with China needs to be handled carefully is that of intellectual property. Here, U.S. companies are largely on their own; our government can establish guidelines and issue warnings, but it cannot take a direct part in legal actions pursued by an American firm that believes its patents, trademarks, or copyrights have been violated. This is no small problem. About 20% of all consumer products in the Chinese market are counterfeit. China's government has taken some steps to address this problem, but these steps have not yet resulted in enough punishment for those who pirate intellectual property to serve as much of a deterrent to others. Furthermore, what the central government promises is one thing; what provincial governments do is another. Corruption, protectionism, and apathy contribute to a climate in which pirating is considered business as usual by local officials located at great distances from the central government.

Which of the following, if true, would most weaken the author's assumptions
regarding the effectiveness of the new system of controlling high-tech trade to China?
(A) Several local police chiefs in remote provinces have been demoted for taking bribes to not enforce pirating laws.
(B) New practices in China have led to greater transparency of the connections between companies and government agencies.
(C) Several U.S. manufacturing firms have expressed reservations regarding the list of acceptable exports.
(D) The new policy makes clear that any business that exports items that are not on the list of acceptable exports will be subject to large fines, and that the company's chief officers will likely face jail sentences.
(E) The list of acceptable exports makes clear which ones have military applications.
OA B

Can someone explain the question properly for me :| .
what are the author's assumptions regarding the effectiveness of the new system of controlling high-tech trade
to China?
What does it mean by effectiveness of new system?
Join the discussion
Source: — Reading Comprehension |

by DavidG@VeritasPrep » Wed Oct 21, 2015 2:33 pm
Mechmeera wrote:An interesting approach to reducing the Unites States' trade deficit has been suggested: relax export restrictions to China. That this suggestion has come from the President of the People's Republic of China perhaps warrants some skepticism. That this idea is seconded by U.S. trade groups that represent aerospace, software, and microchip manufacturers, all of whom produce equipment that can be used for military purposes, also gives one pause. Despite some reforms, real and promised, China's "private" sector is too entangled with a government whose aims and actions are frequently at odds with U.S. policy and ideology.

To expedite "safe" trade with China, the U.S. has recently compiled a list of acceptable Chinese businesses with which our high-tech firms can trade. This replaces a system that required that exporters take the time-sometimes a considerable amount-to get licenses for the items they wished to export. Supposedly, the new system has stringent criteria that ensure that the Chinese firms will only use the imported goods for non-military purposes. Many of these products are, however, dual-purpose; they have military as well as commercial applications. Despite assurances that ground checks will prevent imported goods from being diverted for military purposes, China is simply too big, and the links between its companies and its government agencies too byzantine, for these assurances to be meaningful.

Another area in which trade with China needs to be handled carefully is that of intellectual property. Here, U.S. companies are largely on their own; our government can establish guidelines and issue warnings, but it cannot take a direct part in legal actions pursued by an American firm that believes its patents, trademarks, or copyrights have been violated. This is no small problem. About 20% of all consumer products in the Chinese market are counterfeit. China's government has taken some steps to address this problem, but these steps have not yet resulted in enough punishment for those who pirate intellectual property to serve as much of a deterrent to others. Furthermore, what the central government promises is one thing; what provincial governments do is another. Corruption, protectionism, and apathy contribute to a climate in which pirating is considered business as usual by local officials located at great distances from the central government.

Which of the following, if true, would most weaken the author's assumptions
regarding the effectiveness of the new system of controlling high-tech trade to China?
(A) Several local police chiefs in remote provinces have been demoted for taking bribes to not enforce pirating laws.
(B) New practices in China have led to greater transparency of the connections between companies and government agencies.
(C) Several U.S. manufacturing firms have expressed reservations regarding the list of acceptable exports.
(D) The new policy makes clear that any business that exports items that are not on the list of acceptable exports will be subject to large fines, and that the company's chief officers will likely face jail sentences.
(E) The list of acceptable exports makes clear which ones have military applications.
OA B

Can someone explain the question properly for me :| .
what are the author's assumptions regarding the effectiveness of the new system of controlling high-tech trade
to China?
What does it mean by effectiveness of new system?
The relevant paragraph here is the second one. The system is described in the first sentence: To expedite "safe" trade with China, the U.S. has recently compiled a list of acceptable Chinese businesses with which our high-tech firms can trade. This replaces a system that required that exporters take the time-sometimes a considerable amount-to get licenses for the items they wished to export.

So the old system involved getting a license. The new system means only trading with companies on an "approved" list.

The author's assumption about how this plan will work comes in the last sentence of the paragraph: Despite assurances that ground checks will prevent imported goods from being diverted for military purposes, China is simply too big, and the links between its companies and its government agencies too byzantine, for these assurances to be meaningful.

The author is skeptical that having a list of "acceptable" companies will work, as the connections between companies and government agencies are "byzantine," meaning that they're complex and hard to understand. Maybe trading with a given company will lead to a product getting diverted for government/military use.

Answer choice B undermines this assumption - if the company-government connections become transparent, they will no longer be difficult to understand.
Veritas Prep | GMAT Instructor

Veritas Prep Reviews
Save $100 off any live Veritas Prep GMAT Course
Join the discussion