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

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10 Sep 2009, 11:40
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Canadians now increasingly engage in “out-shopping,” which is shopping across the national border, where prices are lower. Prices are lower outside of Canada in large part because the goods-and-services tax that pays for Canadian social services is not applied.
Which one of the following is best supported on the basis of the information above?

(A) If the upward trend in out-shopping continues at a significant level and the amounts paid by the government for Canadian social services are maintained, the Canadian goods-and-services tax will be assessed at a higher rate.

(B) If Canada imposes a substantial tariff on the goods bought across the border, a reciprocal tariff on cross-border shopping in the other direction will be imposed, thereby harming Canadian businesses.

(C) The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.

(D) The same brands of goods are available to Canadian shoppers across the border as are available in Canada.

(E) Out-shopping purchases are subject to Canadian taxes when the purchaser crosses the border to bring them into Canada
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10 Sep 2009, 12:12
IMO A. If amounts paid by the government for Canadian social services are maintained and out-shopping increases then revenue from goods-and-services tax will be decreased, so to compensate for loss government has to increase goods-and-services tax.
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10 Sep 2009, 12:41
skg wrote:
Canadians now increasingly engage in “out-shopping,” which is shopping across the national border, where prices are lower. Prices are lower outside of Canada in large part because the goods-and-services tax that pays for Canadian social services is not applied.

Which one of the following is best supported on the basis of the information above?

(A) If the upward trend in out-shopping continues at a significant level and the amounts paid by the government for Canadian social services are maintained, the Canadian goods-and-services tax will be assessed at a higher rate.

(B) If Canada imposes a substantial tariff on the goods bought across the border, a reciprocal tariff on cross-border shopping in the other direction will be imposed, thereby harming Canadian businesses.

(C) The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.

(D) The same brands of goods are available to Canadian shoppers across the border as are available in Canada.

(E) Out-shopping purchases are subject to Canadian taxes when the purchaser crosses the border to bring them into Canada

I go for A. All other choices are irrevalant.

(A) Most likely....
(B) Nothing is said about ------ a reciprocal tariff on cross-border shopping in the other direction will be imposed.
(C) Definitely not with the decreasing tax amount.
(D) Nothing is mentioned about - brands.
(E) Also not mentioned..........
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15 Sep 2009, 17:19
GMAT TIGER wrote:
skg wrote:
Canadians now increasingly engage in “out-shopping,” which is shopping across the national border, where prices are lower. Prices are lower outside of Canada in large part because the goods-and-services tax that pays for Canadian social services is not applied.

Which one of the following is best supported on the basis of the information above?

(A) If the upward trend in out-shopping continues at a significant level and the amounts paid by the government for Canadian social services are maintained, the Canadian goods-and-services tax will be assessed at a higher rate.

(B) If Canada imposes a substantial tariff on the goods bought across the border, a reciprocal tariff on cross-border shopping in the other direction will be imposed, thereby harming Canadian businesses.

(C) The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.

(D) The same brands of goods are available to Canadian shoppers across the border as are available in Canada.

(E) Out-shopping purchases are subject to Canadian taxes when the purchaser crosses the border to bring them into Canada

I go for A. All other choices are irrevalant.

(A) Most likely....
(B) Nothing is said about ------ a reciprocal tariff on cross-border shopping in the other direction will be imposed.
(C) Definitely not with the decreasing tax amount.
(D) Nothing is mentioned about - brands.
(E) Also not mentioned..........

"D" for me. If similar products are not available across the border why would people engage in out-shopping?
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17 Sep 2009, 19:20
I will go with A

D looks incorrect as nothing is mentioned about the brands and it is not necessary that shoppers will buy things only if same brands are available
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18 Sep 2009, 08:00
A
This is a disguised INFERENCE problem. If Canadians INCREASINGLY engage in out-shopping then the Canadian government would have to increase the tax to maintain the same level of service.
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18 Sep 2009, 08:12
Pleas post the OA..
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18 Sep 2009, 08:19
I will go with D.

According to the information given in question, canadians buy the good from outside to avoid the taxes. That means it is quite possible that the same goods are available in Canada too.
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18 Sep 2009, 19:45
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18 Sep 2009, 20:11
IMO A is the answer. The only answer could have been B but we cannot say anything about the taxes on the region 'outside' Canada from where the things are being imported.
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18 Sep 2009, 21:15
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aagar2003 wrote:
IMO A is the answer. The only answer could have been B but we cannot say anything about the taxes on the region 'outside' Canada from where the things are being imported.

Increase in taxes is a mere speculation .It can't be derived from the argument. IMO "D". If similar goods are not available across the border why would anybody engage in out-shopping?
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18 Sep 2009, 21:25
Casinoking wrote:
aagar2003 wrote:
IMO A is the answer. The only answer could have been B but we cannot say anything about the taxes on the region 'outside' Canada from where the things are being imported.

Increase in taxes is a mere speculation .It can't be derived from the argument. IMO "D". If similar goods are not available across the border why would anybody engage in out-shopping?

I agree with you. D seems correct.
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22 Sep 2009, 18:25
aagar2003 wrote:
Casinoking wrote:
aagar2003 wrote:
IMO A is the answer. The only answer could have been B but we cannot say anything about the taxes on the region 'outside' Canada from where the things are being imported.

Increase in taxes is a mere speculation .It can't be derived from the argument. IMO "D". If similar goods are not available across the border why would anybody engage in out-shopping?

I agree with you. D seems correct.

Note : Option D is asking about brands of goods not the actual goods
I agree that if same goods are not available , no one will probably buy , however even if same brands of goods are not available,people will still buy the goods
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22 Sep 2009, 22:42
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A&D are close but like to chose D

because D proves that we get the same standard and same brand clothes in both the place
he wanted to tell Brand is not a factor to decide the place of shopping indirectly supporting the conclusion
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09 Mar 2012, 15:56
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14 May 2014, 01:54
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31 May 2015, 05:47
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31 May 2015, 06:55
A
As the goods purchase locally reduce, same amount of tax would be applied to reduced goods and thus would be at an higher rate..
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21 Jul 2015, 01:03
Option D seems more like an assumption rather than an inference.

After POE, only option A stands out.

Please post both OA & OE.
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19 Jan 2017, 07:20
IMO the answer is A (using POE)

Moderators , please remove the questions without answers as they leave us confused.
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Re: Canadians now increasingly engage in out-shopping, which is   [#permalink] 19 Jan 2017, 07:20

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