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CR - Negation type weakener

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CR - Negation type weakener

by karthikpandian19 » Thu Jul 12, 2012 7:19 pm
Many experts in international trade claim that providing low- or no-interest loans to start-up businesses in the third world will ultimately benefit American businesses. They claim that these start-up businesses may introduce new markets or products that American businesses will later be able to take advantage of, providing a greater long-term benefit than a higher rate of interest ever could.

Each of the following statements, if true, weakens the conclusion EXCEPT:


(A) 95% of third-world start-ups go out of business within their first two years on the market.

(B) Third-world start-ups tend to focus on niche markets that are not particularly susceptible to foreign competition.

(C) Many third-world countries have regulations that make it difficult for foreign interests to take advantage of successful domestic companies.

(D) Third-world countries with successful domestic businesses usually increase their consumption of imported goods dramatically.

(E) Many third-world governments choose to nationalize important industries as soon as they begin to produce significant exports.
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by spartacus1412 » Sun Jul 15, 2012 8:24 pm
B
OA plz
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by eagleeye » Sun Jul 15, 2012 9:20 pm
karthikpandian19 wrote:Many experts in international trade claim that providing low- or no-interest loans to start-up businesses in the third world will ultimately benefit American businesses. They claim that these start-up businesses may introduce new markets or products that American businesses will later be able to take advantage of, providing a greater long-term benefit than a higher rate of interest ever could.

Each of the following statements, if true, weakens the conclusion EXCEPT:
Argument: Providing low/no-interest loans to third-world start-ups will help American businesses because those businesses can take advantage of new products/markets created by the start-ups.

(A) 95% of third-world start-ups go out of business within their first two years on the market.
Clearly, this weakens the argument. No.

(B) Third-world start-ups tend to focus on niche markets that are not particularly susceptible to foreign competition.
If third-world start-ups tend to focus on niche domestic markets, the American businesses cannot take enough advantage of them. Hence it weakens the argument. No.

(C) Many third-world countries have regulations that make it difficult for foreign interests to take advantage of successful domestic companies.
Again, this weakens the argument by saying that regulations make it difficult for American companies to take advantage of the successful start-ups. No.

(D) Third-world countries with successful domestic businesses usually increase their consumption of imported goods dramatically.
At best, this strengthens the conclusion if America is one of the countries the successful companies import from, potentially helping American businesses.
At worst, it doesn't affect the conclusion at all.
Overall, it doesn't ever weaken the argument. CORRECT.

(E) Many third-world governments choose to nationalize important industries as soon as they begin to produce significant exports.
Again, this weakens the argument because if the industries are nationalized , American businesses may not be able to take full advantage of them. No.

Hence D should be the correct answer.
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by vk_vinayak » Mon Jul 16, 2012 1:39 am
eagleeye wrote: (B) Third-world start-ups tend to focus on niche markets that are not particularly susceptible to foreign competition.
If third-world start-ups tend to focus on niche domestic markets, the American businesses cannot take enough advantage of them. Hence it weakens the argument. No.
The options doesn't say, nice domestic market, it just says niche market. If the third world start-ups focus on niche markets, then American businesses will certainly be able to take advantage of it. I believe it strengthens the argument.
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by eagleeye » Mon Jul 16, 2012 9:51 pm
vk_vinayak wrote:
eagleeye wrote: (B) Third-world start-ups tend to focus on niche markets that are not particularly susceptible to foreign competition.
If third-world start-ups tend to focus on niche domestic markets, the American businesses cannot take enough advantage of them. Hence it weakens the argument. No.
The options doesn't say, nice domestic market, it just says niche market. If the third world start-ups focus on niche markets, then American businesses will certainly be able to take advantage of it. I believe it strengthens the argument.
Hi vk_vinayak:
The "domestic" was a typo. I still stick by my idea though.

One part of the premise of the argument is that "American businesses can later take advantage of the newly created markets". If the borrowers focus on niche markets, but in the ones which are not susceptible to foreign competition, (which means that those markets are hard for foreign companies to enter and compete in), it will be very hard for the American businesses to take advantage of such markets. Hence, as I said before, B weakens the argument.
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by karthikpandian19 » Mon Jul 16, 2012 10:08 pm
OA is D

This question asks for the one answer choice that does not weaken the conclusion that American businesses can, in the long term, benefit more from providing low- or no-interest loans than by providing high-interest loans to third-world start-up businesses. The argument bases its conclusion on the idea that low- and no-interest loans increase the chances that third-world start-ups will create opportunities that American businesses can take advantage of.

Choice D is correct. If third-world countries with successful businesses increase their consumption of imported goods, then the argument is strengthened, because American businesses could benefit from this increased consumption of imports.

Choice A states that "95% of third-world start-ups go out of business within their first two years on the market." If this is true, the odds of long-term success seem slim regardless of interest rates, and American businesses might be better off trying to collect interest in the short-term. Therefore, choice A weakens the argument.

Choice B brings up the possibility that, even if third-world start-ups do achieve long-term success, American companies may not be in a good position to turn it to their own advantage, weakening the idea that success for third-world start-ups equals profit for their American benefactors.

Choice C states that regulations in third-world countries may inhibit American companies' ability to take advantage of their success. Like choice B, this choice weakens the argument because it suggests that success for third-world start-ups doesn't necessarily equal profit for their American benefactors.

Choice E states that third-world start-ups that achieve success to the point of being able to export their products outside of their respective countries may be nationalized and thus not open to investment from the American businesses that gave them their first loans. This choice, like choices B and C, presents another reason that success for third-world start-ups may not equal profit for their American benefactors.

Choice D is correct.
karthikpandian19 wrote:Many experts in international trade claim that providing low- or no-interest loans to start-up businesses in the third world will ultimately benefit American businesses. They claim that these start-up businesses may introduce new markets or products that American businesses will later be able to take advantage of, providing a greater long-term benefit than a higher rate of interest ever could.

Each of the following statements, if true, weakens the conclusion EXCEPT:


(A) 95% of third-world start-ups go out of business within their first two years on the market.

(B) Third-world start-ups tend to focus on niche markets that are not particularly susceptible to foreign competition.

(C) Many third-world countries have regulations that make it difficult for foreign interests to take advantage of successful domestic companies.

(D) Third-world countries with successful domestic businesses usually increase their consumption of imported goods dramatically.

(E) Many third-world governments choose to nationalize important industries as soon as they begin to produce significant exports.
Regards,
Karthik
The source of the questions that i post from JUNE 2013 is from KNEWTON

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