Canadians now increasingly engage in out-shopping : GMAT Critical Reasoning (CR)
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# Canadians now increasingly engage in out-shopping

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Director
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Canadians now increasingly engage in out-shopping [#permalink]

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05 Oct 2005, 16:49
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Canadians now increasingly engage in â€œout-shopping,â€
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05 Oct 2005, 17:05
I go for A

If more people buy outside of canada and social service costs shall remain the same, then the government have to raise the goods-and-service tax in order to compensate for the loss of tax income.

B) the stem gives in now way information, that the canadians have reason to impose a reciprocal tariff
C) if true, it would contradict the stem.
D) irrelevant. even if only different brands of goods were available outside of canada, they still could be a lot cheaper and thus provide reason to go out-shopping.
E) If true, then canadians would have no reason to go out-shopping and the whole stem makes no sense anymore.
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05 Oct 2005, 17:49
(A) - Best choice. The goods and services tax imposed by the Canadian government would have to be increased if expenditure flowing out of the country is increased.
(B) - can't tell based on passage
(C) - not supported for
(D) - can't tell if the brands are the same
(E) - can't tell from the passage

A is the best choice.
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05 Oct 2005, 21:05
A is my pick.

Increase in tax rate will follow to compensate for the lost tax income in decreased sales.
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06 Oct 2005, 00:11
go A go....
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Re: CR - Canadian shopping [#permalink]

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06 Oct 2005, 07:18
Go with A. We are looking for an effect of the out shopping.

A answers this because the decrease in Canadian shopping will cause a decrease in the taxes generated. So, in order to meet the expenses of the social services, the tax rate has to go up.

[quote="rahulraao"]Canadians now increasingly engage in â€œout-shopping,â€
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06 Oct 2005, 07:40
A imo too
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06 Oct 2005, 12:21
I have to disagree with you guys here and choose D.

I think A is out of scope.
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06 Oct 2005, 12:36
I pick A because this is the only conclusion that could be reach by the passage.
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06 Oct 2005, 20:55
A may not be a perfect prediction, but it is the only logical conclusion that can be made based on the limited evidence in the passage.
06 Oct 2005, 20:55
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# Canadians now increasingly engage in out-shopping

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