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Exports of United States wood pulp will rise consid- erably

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Exports of United States wood pulp will rise consid- erably [#permalink] New post 27 Sep 2010, 12:28
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

14% (02:45) correct 86% (01:47) wrong based on 15 sessions
Exports of United States wood pulp will rise consid-
erably during this year. The reason for the rise is
that the falling value of the dollar will make it
cheaper for paper manufacturers in Japan and West-
ern Europe to buy American wood pulp than to get
it from any other source.

Which of the following is an assumption made in
drawing the conclusion above?
(A) Factory output of paper products in Japan and
Western Europe will increase sharply during
this year.

(B) The quality of the wood pulp produced in the
United States would be adequate for the
purposes of Japanese and Western European
paper manufacturers.

(C) Paper manufacturers in Japan and Western
Europe would prefer to use wood pulp
produced in the United States if cost were
not a factor.

(D) Demand for paper products made in Japan and
Western Europe will not increase sharply
during this year.

(E) Production of wood pulp by United States
companies will not increase sharply during
this year.
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Re: Paper manufacturers [#permalink] New post 27 Sep 2010, 12:39
IMO, it's B.

OA?
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Re: Paper manufacturers [#permalink] New post 27 Sep 2010, 12:49
I used POE to narrow down to B & C

Statement mentions that the falling value of dollar will make the manufacturers to buy from the US. It is not related to factory output in Japan and West Europe,. Even if the production remains the same, the statement mentions that due to cheap prices, more of the pulp will be bought from the US (A) Factory output of paper products in Japan and Western Europe will increase sharply during this year.

Correct. Of course, if the quality if not good enough, cheap prices will not attract manufacturers from Japan and West Europe to turn to the US (B) The quality of the wood pulp produced in the United States would be adequate for the purposes of Japanese and Western European paper manufacturers.

Statement only implies that they will turn to US due to cheaper prices. Nothing mentions that if they could, they would always buy from US. Even if it was true, it is not an assumption for the above statement (C) Paper manufacturers in Japan and Western Europe would prefer to use wood pulp produced in the United States if cost were not a factor.

Irrelevant (D) Demand for paper products made in Japan and Western Europe will not increase sharply during this year.

Irrelevant (E) Production of wood pulp by United States companies will not increase sharply during this year.
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Re: Paper manufacturers [#permalink] New post 27 Sep 2010, 17:49
Orange08 wrote:
Exports of United States wood pulp will rise consid-
erably during this year. The reason for the rise is
that the falling value of the dollar will make it
cheaper for paper manufacturers in Japan and West-
ern Europe to buy American wood pulp than to get
it from any other source.

Which of the following is an assumption made in
drawing the conclusion above?
(A) Factory output of paper products in Japan and
Western Europe will increase sharply during
this year.
Does not mean Japan or Western Europe will buy from US.
(B) The quality of the wood pulp produced in the
United States would be adequate for the
purposes of Japanese and Western European
paper manufacturers.
This is the answer, if it is cheaper and it is adequate for their purposes then yes they will buy from US.
(C) Paper manufacturers in Japan and Western
Europe would prefer to use wood pulp
produced in the United States if cost were
not a factor.
Conclusion says, price is the rising why Japan and Western Europe will start buying from US, this answer choice says cost isn't a factor.
(D) Demand for paper products made in Japan and
Western Europe will not increase sharply
during this year.
Demand won't increase, no need for extra wood pulp.
(E) Production of wood pulp by United States
companies will not increase sharply during
this year.
Production won't increase? Exports won't either.

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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 06:06
B

I was expecting to see an answer which said Wood pulp price + cost of transportation < buying it in their respective market. Other than B no other choices stand close.
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 07:27
(A) Factory output of paper products in Japan and
Western Europe will increase sharply during
this year.
>> Not relevant. Conclusion talks about Japan and
Western Europe buying wood pulp from United states. This statement can not be an assumption for the conclusion
.
(B) The quality of the wood pulp produced in the
United States would be adequate for the
purposes of Japanese and Western European
paper manufacturers.
>> Yes. If the wood pulp quality in the US is adequate for paper manufacturing then only Japan and WE will buy the pulp from US rather than other sources. This is the assumption.

(C) Paper manufacturers in Japan and Western
Europe would prefer to use wood pulp
produced in the United States if cost were
not a factor.
>> Not an assumption. The passage talks about cost and falling dollar value.

(D) Demand for paper products made in Japan and
Western Europe will not increase sharply
during this year.
>> Not relavant for the conclusion.(E) Production of wood pulp by United States
companies will not increase sharply during
this year.
>> Not relavant for the conclusion.
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 10:13
B
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 10:34
Everyone's picking B, but I think this is C... what's the OA? My reasoning is below.

Orange08 wrote:
Exports of United States wood pulp will rise consid-
erably during this year. The reason for the rise is
that the falling value of the dollar will make it
cheaper for paper manufacturers in Japan and West-
ern Europe to buy American wood pulp than to get
it from any other source.

The conclusion made here is that falling prices of wood pulp imported from the US will lead to paper manufacturers in Japan and Western Europe to buy wood pulp from America, rather than from wherever they normally buy it. The assumption, then, must be that the only reason they don't currently buy it from the US is because it costs too much.

Which of the following is an assumption made in
drawing the conclusion above?
(A) Factory output of paper products in Japan and
Western Europe will increase sharply during
this year. This doesn't mean they would buy from the

(B) The quality of the wood pulp produced in the
United States would be adequate for the
purposes of Japanese and Western European
paper manufacturers. I can see why people pick this one, but it's not the assumption that's made for the conclusion. The conclusion only states that the decrease in price will lead to an increase in sales - no mention is made of the quality.

(C) Paper manufacturers in Japan and Western
Europe would prefer to use wood pulp
produced in the United States if cost were
not a factor. Correct - if this weren't the case, then it means there is a factor other than cost preventing them from purchasing US pulp now - so if the cost goes down and everything else stays the same, they will start buying from the US.

(D) Demand for paper products made in Japan and
Western Europe will not increase sharply
during this year. An increase in demand would lead to Japan and W. Europe needing more pulp.

(E) Production of wood pulp by United States
companies will not increase sharply during
this year. Not really relevant to the conclusion.
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 10:55
Well TehJay, maybe you are right. Makes sense.

This can also be seen as - the manufacturers were not buying American wood pulp earlier coz of the cost, and now that it is becoming cheaper, they will buy it from the US and American wood pulp export will increase.

Actually, as I was writing the above, C makes more sense now.

C goes deeper than B. No wonder I had narrowed down to B & E with the POE.
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 12:06
I completely agree with the explanation of TehJay. I feel C stands much closer than B.
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 12:43
Orange08 wrote:
I completely agree with the explanation of TehJay. I feel C stands much closer than B.


what is the OA ? Bet it's C.
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 13:16
I think it is B.
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 13:40
OA is B, though, personally I don't agree.
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 14:03
Orange08 wrote:
OA is B, though, personally I don't agree.


I said B first, then I turned towards C and now the OA made me rethink ....... :roll:
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 14:21
adishail wrote:
Orange08 wrote:
OA is B, though, personally I don't agree.


I said B first, then I turned towards C and now the OA made me rethink ....... :roll:


The conclusion is that exports of US wood pulp will rise considerably this year.

The evidence is the US wood pulp is cheaper now for Japan and Western Europe than any other source. They will import these US products which will cause the US exports to rise.

I think it is B because it MUST BE TRUE to reach this conclusion. If the quality of the US product was not sufficient for these countries then they would not import the product, even if it was cheaper.
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Re: Paper manufacturers [#permalink] New post 28 Sep 2010, 14:43
I think I realize why I had selected B to start with. The importance is in understanding the QUESTION -

Which of the following is an assumption made in drawing the conclusion above?


Assuming C is kind of a stretch as compared to B.

The question states that - falling value of the dollar will make it cheaper for paper manufacturers in Japan and Western Europe to buy American wood pulp than to get it from any other source.

Therefore, assuming their preference is not right. We know that they WILL buy from US if prices are low (it is the premises). We are not trying to assume whether or not they will buy from the US.

WHAT WILL FAIL THE CONCLUSION ? Premises is that prices are going down (non-arguable). Therefore, which choice can help us figure a possible reason of why the exports didn't increase. Failure of assumption will fail the conclusion too. We had assumed that the quality was adequate, but it wasn't, hence the exports did not increase.

Choice C is a premises in this context. It could act as a reason. But in this case a reason is already given.
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Re: Paper manufacturers   [#permalink] 28 Sep 2010, 14:43
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