My question is in comparison when you use they then the comparison should be with the same people. Here we are comparing the elderly people in japan and elderly people in other countries. So two different set of elderly people right? SO we should those right?
In Japan elderly people are treated with far greater respect than most Western countries.
(E) they are in most Western countries
So first of all "In Japan" does not modify "elderly people", it modifies the action (the verb) "are treated".
So you can look at the sentence in this way:"Elderly people are treated (where?) in Japan with far greater respect than they are in most Western countries."
So we are taking about "elderly people" in general and NOT about "elderly people OF Japan". The meaning is different:
if an elderly person will go to Japan, he'll be treated with great respect regardless of where he is from(case #1).
[If I say "Elderly people OF JAPAN are treated with far greater respect"]
it means that a Japanese elderly will be treated with great respect regardless of where he is right now (in Japan or in Europe for example)(case #2).
With this out of the way, we can see that the sentence talks about "elderly people" in general, so the set is one
(all the elderly people).
Hope everything is clear
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