Some analysts maintain that an embargo by country Litora on : GMAT Critical Reasoning (CR)
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# Some analysts maintain that an embargo by country Litora on

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Manager
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Some analysts maintain that an embargo by country Litora on [#permalink]

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03 Apr 2006, 21:08
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Some analysts maintain that an embargo by country Litora on the export of a strategic metal to country Zenda, if imposed, would drive up the price of the metal in Zenda at least tenfold. They note that few other countries export the metal and that, with an embargo, Zenda might have to depend on as-yet-unexploited domestic sources of the metal.
Which of the following, if true, constitutes the most serious objection to the analysis above?

(A) Litoraâ€™s economy depends heavily on foreign currency earned by the export of the strategic metal to other countries.
(B) There are foreign-policy steps that Zenda could take to appease Litora and avoid being subjected to an embargo on the metal.
(C) Geologists believe that additional deposits of the metal could possibly be found within the territory of Litora.
(D) Only a small proportion of Zendaâ€™s import expenditures is devoted to the import of the metal from Litora.
(E) In case of an embargo, Zenda could buy the metal indirectly from Litora on the world market at a less than one-third increase in cost.
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03 Apr 2006, 22:50
It looks like E. Whats the OA?
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Re: CR- Litora [#permalink]

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04 Apr 2006, 01:02
I go for D. Since if it's true that in turn would mean that Litor embargo would not have any effect on the price of metal in Zenda
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04 Apr 2006, 01:14
Ans = E.
because if E were true, then "Zenda might have to depend on as-yet-unexploited domestic sources of the metal" will not hold.
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04 Apr 2006, 09:30
Go for 'E'.
04 Apr 2006, 09:30
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# Some analysts maintain that an embargo by country Litora on

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