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by goelmohit2002 » Mon Aug 10, 2009 4:57 am
Hi All,

In the below question, [spoiler]OA = C. Can someone please tell why C is better then A ?[/spoiler]

Country X imposes heavy tariffs on imported manufactured goods. Company Y has determined that it could increase its profits in the long term by opening a factory in Country X to manufacture the goods that it currently produces in its home country for sale in Country X.

For Company Y's determination to be true, which of the following assumptions must also be true?

a Company Y will be able to obtain all the necessary permits to open a factory in Country X.
b Company Y currently produces no goods outside its home country.
c A sustainable market for Company Y's goods currently exists in Country X.
d Company Y's home country does not impose tariffs on imported goods.
e Labor costs in Country X are lower than those in Company Y's home country.
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by scoobydooby » Mon Aug 10, 2009 7:00 am
company Y's determination: to increase its profit by opening factory in country X.
the bigger question is whether it would be able to increase its profits. the possibility of opening the factory is taken for granted. the company would have factored in the permits/other requirements before embarking on the idea of opening a factory. so A does not cut it.

C. negate=> no sustainable market for Y's goods=>revenue suffers=>profits may not increase. weakens company Y's objective.
C is the assumption.
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by goelmohit2002 » Mon Aug 10, 2009 8:11 am
scoobydooby wrote: the possibility of opening the factory is taken for granted. the company would have factored in the permits/other requirements before embarking on the idea of opening a factory. so A does not cut it.
Hi Scooby,

Thanks!!

Actually I am not able to understand how can we take this for granted.....nowhere in the pessage the same is mentioned...

Even if we do negation test on A.....

Company will not get permit => Company cannot open a factory => Company cannot make money.(i.e. increase its profits by the proposed plan)

Isn't the above too weakening the conclusion...?

Can you please help me understand what I am missing here....

Moreover if we see in C.....it says that market exists currently....

But how can we say that current = long term(the aim of the plan) ? In fact there are couple of examples in OG where they kick out answers based on the fact that situations change over time...why not the same case here ?

Thanks
Mohit
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by niraj_a » Mon Aug 10, 2009 9:44 am
ya i chose A as well. i dumped C because the stimulus says that the products are currently manufactured in Y for sale in X, which automatically means that there is already a market for Y's products in X.
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by arorag » Mon Aug 10, 2009 5:33 pm
Key to answer this question is...
could increase its profits in the long term by opening a factory
In ans...
A sustainable market for Company Y's goods currently exists in Country X.
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by Stacey Koprince » Tue Aug 11, 2009 12:22 pm
Received a PM asking me to respond re: choices A and C.

The conclusion is only that the company "could" increase its profits by following a certain plan - not that it definitely will be able to implement the plan. The distinction is between saying something "could" happen if a certain plan were followed - hypothetical - and saying: we are going to follow this plan and this will happen as a result. For the former, I'm proposing something to my boss, "I'm not 100% sure we can actually do this - but here's one possible way we could increase profits." For the latter, I'm proposing something different, "We've done all of the research and preparation, and this is how it is definitely going to happen."

If the conclusion were that the company will increase its profits by implementing this plan, then use, the company would have to assume that all of the different pieces of the plan would fall into place, including necessary permits. But that's not our conclusion here - we're talking about the hypothetical.
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by goelmohit2002 » Tue Aug 11, 2009 1:22 pm
Stacey Koprince wrote:Received a PM asking me to respond re: choices A and C.

The conclusion is only that the company "could" increase its profits by following a certain plan - not that it definitely will be able to implement the plan. The distinction is between saying something "could" happen if a certain plan were followed - hypothetical - and saying: we are going to follow this plan and this will happen as a result. For the former, I'm proposing something to my boss, "I'm not 100% sure we can actually do this - but here's one possible way we could increase profits." For the latter, I'm proposing something different, "We've done all of the research and preparation, and this is how it is definitely going to happen."

If the conclusion were that the company will increase its profits by implementing this plan, then use, the company would have to assume that all of the different pieces of the plan would fall into place, including necessary permits. But that's not our conclusion here - we're talking about the hypothetical.
Hi Stacey,

Thanks a lot....does CR also require us to see this will Vs can distinction....so minutely :-)

I thought we have to only worry this in SC :-)

Thanks
Mohit
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by Stacey Koprince » Wed Aug 12, 2009 12:48 pm
Sometimes, yes, though not as much. :)
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by goelmohit2002 » Thu Aug 13, 2009 5:48 am
Stacey Koprince wrote:Sometimes, yes, though not as much. :)
Thanks a lot Stacey.

But for what good reason currently there in C.....it says that market exists "currently"....

But how can we say that current = long term(the aim of the plan) ? In fact there are couple of examples in OG where they kick out answers based on the fact that situations change over time...why not the same case here ?
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by Stacey Koprince » Thu Aug 13, 2009 12:20 pm
That would be another word in the answer: sustainable. That means it is expected to last over a decent period of time. :)
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by tanviet » Tue Oct 06, 2009 11:31 pm
I do not understand.

for me A is not in context of evidence and so wrong

C is in context of evidence and correct
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by Stacey Koprince » Thu Oct 29, 2009 9:38 am
duong - C is the correct answer, so you're right. What is it that you don't understand?
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by brick2009 » Sun Nov 01, 2009 11:41 pm
A: is incorrect, as it forces you to 'add' additional information into the argument..


c: It already maks goods for X, so if the plan has to succeed, market must be sustainable.

The word sustainable is the clue..as Y plans to make profit in the LONG TERM.



A: has no connection to the plan...how will getting permit help LONG TERM plan????
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