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
GMATBootcamp Starts Sep 21
Chris Peckover, Target Test Prep GMAT expert
LIVE ONLINE BOOTCAMP

Live Online Bootcamp Class with Top GMAT Expert Chris Peckover

Sep 21 to Oct 9, 2026

Schedule
Mon to Fri · 7:00 to 10:00 PM ET
Included
Live classes + 6 months of TTP OnDemand
  • Boost your GMAT score in less than one month in a live online class
  • 6 months access to TTP OnDemand video courses included
View bootcamp & 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
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
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.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions
Start free 5-day trial
Read 559 reviewsTarget Test Prep

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

MGMAT Exam Question

Critical Reasoning, Reading Comprehension
Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Newbie | Next Rank: 10 Posts
Posts: 9
Joined: Sun Mar 30, 2008 8:51 am
GMAT Score:710
by Spring599 » Wed Sep 30, 2009 12:32 pm
Can someone please explain how this answer makes sense. Just one of the reasons why I dislike GMAT's verbal section (I think MGMAT offers exceptional guides, so I I am not biased)

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.

Correct answer is C.

The question states that the company already manufactures this product in its home country for sale in Country X. The sale of a product would indicate that a market already exists. In my opinion, this answer lacks any logic.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Verbal Reasoning |
Junior | Next Rank: 30 Posts
Posts: 15
Joined: Mon Oct 13, 2008 7:04 pm

by akhilkathuria » Thu Oct 01, 2009 12:57 pm
Answer C is correct,
It doesnt say that company Y exports stuff to country X.
i means question doesnt state that
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Newbie | Next Rank: 10 Posts
Posts: 9
Joined: Sun Mar 30, 2008 8:51 am
GMAT Score:710

by Spring599 » Thu Oct 01, 2009 6:36 pm
I'm pretty sure it does say that.

opening a factory in Country X to manufacture the goods that it currently produces in its home country for sale in Country X

So, we are supposed to assume that the company produces a product for sale in country X, but doesn't actually sell this product to country X? I do not see the logic in this.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Newbie | Next Rank: 10 Posts
Posts: 2
Joined: Mon Jul 28, 2008 4:00 pm

by mr big » Fri Oct 16, 2009 5:14 am
what level question is this from MGMAT?
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Senior | Next Rank: 100 Posts
Posts: 73
Joined: Sat Oct 03, 2009 10:37 pm

a good confusing question!

by kiennguyen » Thu Oct 22, 2009 12:25 am
opening an operation in another country is one of strategies which reduce cost of production. however, it should be known whether this strategy will generate benefits in the long term. in this situation, C & E together should be a good answer.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 156
Joined: Sat Jul 19, 2008 6:41 am
Thanked: 8 times

IMO

by enniguy » Mon Oct 26, 2009 8:54 pm
Spring599 wrote:I'm pretty sure it does say that.

opening a factory in Country X to manufacture the goods that it currently produces in its home country for sale in Country X

So, we are supposed to assume that the company produces a product for sale in country X, but doesn't actually sell this product to country X? I do not see the logic in this.
Focus on the term "long Term" in the question. The corresponding requirement in the assumption should be "sustainable".
E.g:- Selling shoes in a village of 10 families might be profitable but is it worth investing a manufacturing plant for those 10 families?
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Junior | Next Rank: 30 Posts
Posts: 11
Joined: Thu Jul 03, 2008 1:24 pm
Location: Albuquerque, NM
GMAT Score:710

by ajayiitr » Wed Dec 16, 2009 3:02 pm
Correct answer is C, though, when I was doing this problem, I picked best answer as A.
My breakdown of problem is that there can be three thoughts for assumption -

1. Increase its profits
2. In the long-term
3. by opening a factory in Country X.

1. Increase its profits is for granted since, company doesn't have to pay tariffs now. So, that rejects answer E.

3. by opening a factory in Country X. I understood when MGMAT explains it that its a contingent plan which is based on opening a factory in Country X. Its also a stated premise. Its unlikely that it can be assumption (unstated premise) when its a premise in argument. That rejects answer A the one that I picked before.

2. In the long-term is the key, because company X is selling its goods in country Y right now, and it wants to maximize its long-term profits by opening a factory in country Y itself and thus, avoiding tariffs. However, argument doesn't state explicitly "long'term profits or sale or market". So, thats the unstated premise out of three. So, correct answer is C.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1