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# Commentator: The theory of trade retaliation states that

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10 Jul 2004, 19:40
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Commentator: The theory of trade retaliation states that countries closed out of any of another country’s markets should close some of their own markets to the other country in order to pressure the other country to reopen its markets. If every country acted according to this theory, no country would trade with any other.

The commentator’s argument relies on which of the following assumptions?

(A) No country actually acts according to the theory of trade retaliation.

(B) No country should block any of its markets to foreign trade.

(C) Trade disputes should be settled by international tribunal.

(D) For any two countries, at least one has some market closed to the other.

(E) Countries close their markets to foreigners to protect domestic producers.

Last edited by Ergenekon on 28 Nov 2014, 02:47, edited 4 times in total.
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14 Jun 2007, 11:41
think I saw this on the OG.

B, C & E are not relevant

Between A & D, better answer is D
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05 Aug 2009, 19:47
Commentator: The theory of trade retaliation states that countries closed out of any of another country’s markets should close some of their own markets to the other country in order to pressure the other country to reopen its markets. If every country acted according to this theory, no country would trade with any other.

The commentator’s argument relies on which of the following assumptions?
(A) No country actually acts according to the theory of trade retaliation.
(B) No country should block any of its markets to foreign trade.
(C) Trade disputes should be settled by international tribunal.
(D) For any two countries, at least one has some market closed to the other.
(E) Countries close their markets to foreigners to protect domestic producers
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09 Oct 2010, 03:05
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Commentator: The theory of trade retaliation states that countries closed out of any of another country’s
markets should close some of their own markets to the other country in order to pressure the other country to
reopen its markets. If every country acted according to this theory, no country would trade with any other.
The commentator’s argument relies on which of the following assumptions?
(A) No country actually acts according to the theory of trade retaliation.
(B) No country should block any of its markets to foreign trade.
(C) Trade disputes should be settled by international tribunal.
(D) For any two countries, at least one has some market closed to the other.
(E) Countries close their markets to foreigners to protect domestic producers.

OA will be given tomorrow.

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Last edited by ankitranjan on 10 Oct 2010, 03:35, edited 1 time in total.
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09 Oct 2010, 04:08
ankitranjan wrote:
Commentator: The theory of trade retaliation states that countries closed out of any of another country’s
markets should close some of their own markets to the other country in order to pressure the other country to
reopen its markets. If every country acted according to this theory, no country would trade with any other.
The commentator’s argument relies on which of the following assumptions?
(A) No country actually acts according to the theory of trade retaliation.
(B) No country should block any of its markets to foreign trade.
(C) Trade disputes should be settled by international tribunal.
(D) For any two countries, at least one has some market closed to the other.
(E) Countries close their markets to foreigners to protect domestic producers.

OA will be given tomorrow.

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By POE method,
A -- New claim or information. Eliminated.
B -- Again new statement/comment. Eliminated.
C -- Out of scope.
E -- Out of scope.

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09 Feb 2013, 01:57
If every country acted according to this theory, NO country WOULD TRADE WITH ANY OTHER...

(A) No country actually acts according to the theory of trade retaliation.
Who would do it in actuality is not the issue.... The conclusion is hypothetical after all...

(B) No country should block any of its markets to foreign trade.
What must be done or not.. is irrelevant to the hypothetical issue... Ethics or Right conduct is irrelevant...

(C) Trade disputes should be settled by international tribunal.
Disputes irrelevant...

(D) For any two countries, at least one has some market closed to the other.
By Negation: If there are at least two countries with no market closed to each other then the hypothetical conclusion will not hold... Hence, it needs to be assumed that any two countries selected will qualify for the theory... BINGO!

(E) Countries close their markets to foreigners to protect domestic producers.
What they did in actuality is irrelevant...
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06 Mar 2013, 07:59
Commentator: The theory of trade retaliation states that countries closed out of any of another country’s
markets should close some of their own markets to the other country in order to pressure the other country to
reopen its markets. If every country acted according to this theory, no country would trade with any other.
The commentator’s argument relies on which of the following assumptions?
(A) No country actually acts according to the theory of trade retaliation.
(B) No country should block any of its markets to foreign trade.
(C) Trade disputes should be settled by international tribunal.
(D) For any two countries, at least one has some market closed to the other.
(E) Countries close their markets to foreigners to protect domestic producers
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06 Mar 2013, 11:47
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The stimulus is saying that a tit-for-tat approach will just render international trade meaningless because each country would close some other market in retaliation to the other country's decision to close some market. This process would then continue till all markets for each country are closed to all others, and no country would trade with any other.

For this to happen, each country must close at least one market to every other country to begin the chain. This is exactly what option D states and is therefore the right answer.
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16 Apr 2013, 11:12
forrestgump wrote:
Commentator: The theory of trade retaliation states
that countries closed out of any of another
countryâ€™s markets should close some of their
own markets to the other country in order to
pressure the other country to reopen its mar-
kets. If every country acted according to this
theory, no country would trade with any other.

The commentatorâ€™s argument relies on which of the
following assumptions?
(A) No country actually acts according to the theory
(B) No country should block any of its markets to
(C) Trade disputes should be settled by international
tribunal.
(D) For any two countries, at least one has some
market closed to the other.
(E) Countries close their markets to foreigners to
protect domestic producers.

I picked B.Need explanation plz
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16 Apr 2013, 12:05
mun23 wrote:
forrestgump wrote:
Commentator: The theory of trade retaliation states
that countries closed out of any of another
countryâ€™s markets should close some of their
own markets to the other country in order to
pressure the other country to reopen its mar-
kets. If every country acted according to this
theory, no country would trade with any other.

The commentatorâ€™s argument relies on which of the
following assumptions?
(A) No country actually acts according to the theory
(B) No country should block any of its markets to
(C) Trade disputes should be settled by international
tribunal.
(D) For any two countries, at least one has some
market closed to the other.
(E) Countries close their markets to foreigners to
protect domestic producers.

I picked B.Need explanation plz

Lets understand it by example. Suppose there are three countries A B and C. We need to met the conclusion "No country would trade with any other."
Consider A and B in view of statement D. If A has market closed to B, then B will retaliate. Similarly, B closed to C then C will retaliate and likewise between A and C.
In case of B "No country should block any of its markets to foreign trade."
First of all it is strong because of usage of word No Country. Secondly, B talks about markets of foreign trade. example agriculture, energy, etc. One need not open foreign market for all sectors. One can be impacted by trade retaliation by trading in one sector as well.

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17 Apr 2013, 21:35
All duplicate threads on this topic have been merged.

Please check and follow the Guidelines for Posting in Verbal GMAT forum before posting anything.
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18 Jun 2013, 17:42
I cannot make the difference between A, B and D? According to the conclusion, why D? A and B seem to work too...
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03 Nov 2013, 20:05
I found this question.
Though I marked D, but still I am not convinced with the explanation. Can somebody please give some concrete reason to select D, except POE.
What should be the pre-thinking?
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05 Dec 2013, 12:46
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My 2 cents

Trade retaliation theory says that one country should close some of its markets in retaliation if other country is also closing some market ( as give in question )

Now Commentator arrives at conclusion that if every country followed this theory than no country would trade with each other.

Now Commentators point of view : Countries are not following this theory, if country A has closed some of its market for country B then as per the theory country B should also have closed some of its market, and in that case no one will be able to trade, but that is not the case country A has closed some of its market and B is not following this theory that is the reason they are able to trade with each other.

Therefore D is right. Commentator assumes that country A has some market closed for country B, but they are still trading, bcz they are not following trade retaliation theory, else they would not be trading.

(D) For any two countries, at least one has some market closed to the other. ( but these countries are still trading bcz they are not acting as per the theory)
now relate above assumption to " if every country followed this theory than no country would trade with each other."

Option A's scope is wide and vague, No country.

Give a deep thought for 5min at least, this question is a brain twister, and option A and D appear possible choices.
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28 Jun 2014, 19:17
I found this one confusing! I am just starting CR problems and I guess I need to be on the lookout for things like this.

When I read "the argument relies on which of the following assumptions," I read it to mean "the following assumptions about how markets work" rather than "the following assumptions about this theoretical situation". So the answer "for any two countries, at least one has some market closed to the other" sounded to me like that would have to be happening in the world right now to support this theory which is of course ridiculous. It seems tricky that the hypothetical situation was referred to in the stimulus with conditional language (country's markets should, no country would) and the answer referring to that situation is in an active voice, I didn't pick up that they were linked...
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10 Aug 2015, 21:04
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12 Sep 2015, 12:36
The author says - if every country did this, no country would trade. But countries trade, so NOT ALL countries close its market, which implies AT LEAST ONE country closes its market to some other country.

Is my reasoning correct?
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17 Mar 2016, 20:11
IMO - A is incorrect because it is "inference". The statement A comes after the facts give in the stimuli.
The question is asking for Assumption. D is correct since it needs to be true for the argument to hold.

I never could learn the negation technique.

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17 Mar 2016, 20:59
vingmat001 wrote:
IMO - A is incorrect because it is "inference". The statement A comes after the facts give in the stimuli.
The question is asking for Assumption. D is correct since it needs to be true for the argument to hold.
The first option is not an inference. Look at the strong wording used there ("no country actually acts according to the theory"). Now look at the conclusion ("if every country acted according to this theory, no country would trade with any other"). If we want to take something other than every country, we don't have to limit ourselves to no country. Not every could include something more than none, but less than all.

To sum up, from the statement if all countries acted like this, not even one would trade, can we infer than not even one country actually follows this strategy?
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15 Jul 2016, 04:54
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Commentator: The theory of trade retaliation states that countries closed out of any of another country’s markets should close some of their own markets to the other country in order to pressure the other country to reopen its markets. If every country acted according to this theory, no country would trade with any other.

The commentator’s argument relies on which of the following assumptions?
A) No country actually acts according to the theory of trade retaliation.
B) No country should block any of its markets to foreign trade.
C) Trade disputes should be settled by international tribunal.
D) For any two countries, at least one has some market closed to the other.
E) Countries close their markets to foreigners to protect domestic producers.[/quote]

--------------------------------------------------------------------------------------------------------------------------------
As we can see option B,C & E are plain and simple irrelevant and useless.
THE REAL CONTENDERS ARE OPTON A & OPTION D

The argument says :-
If Japan blocks Indian sugar coming to their market, then India should block Japanese steel coming to India.
This will Pressurise Japan to open his market for Indian Sugar. (There are 2 possibilities, Either Japan will open its market or Japan will try to pressurise India by blocking India wheat, Then again two things may happen:- Either india will allow japanese steel or it will block Japanese seafood and so on and on and on..)
The argument then concludes that:-If every country acts like this, then no country will be able to trade with each other.
So it is clear that the argument believes that one ban will lead to another ban.
It does not believe that one ban will make the other country to open its ban.

In essence this argument tells us Cause (Japan Bans X)-->effect (India Bans y)-->cause (Japan Bans z)--->effect (India Bans a)--->cause (Japan bans b)--->effect (India ban c) and so on.. this is what is called a vicious cycle.

Notice that How the conclusion presents a situation that is expected to happen but NOT REALLY happens in real world.
Why is it not happening:- May be because No country has closed market to other country.
For example :- If japan bans indian sugar, India Bans japanese steel, Then japan bans Indian leather, then india bans japanese electronics. Then japan send his surplus electronics to britian and britain tries to save its home grown industry and bans Japanese electronics. Japan then bans British meat, Britain then bans japanese sea food. Meanwhile India sends his surplus leather to US, US bans it for child labor issues, then India in response bans MacDonalds and pepsi and cococola, then america bans Indian software.. and so on.. then this cycle keep on happening. And at the end of the day no country will be able to trade with other country

So the argument assumes that this will happen when atleast one of the country will close its market to another country.

Which options states this
(D) For any two countries, at least one has some market closed to the other.

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