Find all School-related info fast with the new School-Specific MBA Forum

It is currently 26 Jul 2014, 03:16

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

When the manufacturers in a given country are slower to

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
Manager
Manager
User avatar
Joined: 22 Feb 2007
Posts: 165
Followers: 2

Kudos [?]: 7 [1] , given: 0

When the manufacturers in a given country are slower to [#permalink] New post 15 Mar 2007, 19:38
1
This post received
KUDOS
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 13 sessions
When the manufacturers in a given country are slower to adopt new technologies than their foreign competitors are, their production costs will fall more slowly than their foreign competitors’ costs will. But if manufacturers’ production costs fall less rapidly than their foreign competitors’ costs do, those manufacturers will be unable to lower their prices as rapidly as their foreign competitors can; and when a country’s manufacturers cannot lower their-prices as rapidly as their foreign competitors can, that country gets squeezed out of the global market.
If the statements above are true, which one of the following must also be true on the basis of them?

(A) If the manufacturers in one country raise their prices, it is because they have squeezed their foreign competitors out of the global market.

(B) If manufacturers in one country have been squeezed out of the global market, this shows that their foreign competitors have adopted new technologies more rapidly than they have.

(C) If a country’s foreign competitors can lower their production costs more rapidly than the country’s own manufacturers can, then their foreign competitors must have adopted new manufacturing techniques.

(D) If a country’s manufacturers adopt new technologies at the same rate as their foreign competitors, neither group will be able to squeeze the other out of the global market.

(E) If a country’s manufacturers can lower their prices as rapidly as their foreign competitors can, this shows that they adopt new technology at least as fast as their foreign competitors do.


OA is E
Manager
Manager
User avatar
Joined: 07 Feb 2007
Posts: 212
Followers: 1

Kudos [?]: 6 [0], given: 0

GMAT Tests User
Re: CR - new technologies [#permalink] New post 15 Mar 2007, 20:28
Good one. At first I got B, which is wrong :oops: . E is the final answer.
Manager
Manager
avatar
Joined: 20 Nov 2006
Posts: 215
Followers: 1

Kudos [?]: 6 [0], given: 0

GMAT Tests User
Re: CR - new technologies [#permalink] New post 15 Mar 2007, 23:11
GMAThopeful wrote:
When the manufacturers in a given country are slower to adopt new technologies than their foreign competitors are, their production costs will fall more slowly than their foreign competitors’ costs will. But if manufacturers’ production costs fall less rapidly than their foreign competitors’ costs do, those manufacturers will be unable to lower their prices as rapidly as their foreign competitors can; and when a country’s manufacturers cannot lower their-prices as rapidly as their foreign competitors can, that country gets squeezed out of the global market.
If the statements above are true, which one of the following must also be true on the basis of them?

(A) If the manufacturers in one country raise their prices, it is because they have squeezed their foreign competitors out of the global market.

----- OUT OF SCOPE

(B) If manufacturers in one country have been squeezed out of the global market, this shows that their foreign competitors have adopted new technologies more rapidly than they have.

---- NOT NECESSARY

(C) If a country’s foreign competitors can lower their production costs more rapidly than the country’s own manufacturers can, then their foreign competitors must have adopted new manufacturing techniques.

--- NOT NECESSARY

(D) If a country’s manufacturers adopt new technologies at the same rate as their foreign competitors, neither group will be able to squeeze the other out of the global market.

--- SEEMS TO BE CORRECT WHICH CAN BE DIRECTLY INFERED FROM THE PASSAGE

(E) If a country’s manufacturers can lower their prices as rapidly as their foreign competitors can, this shows that they adopt new technology at least as fast as their foreign competitors do.

--- THE PRICES REDUCTION CAN BE DONE IN MANY WAYS... NOT NECESSARY THAT THEY SHOULD ADOPT THE LATEST TECHNOLOGY.


OA is E



I choose the answer D.
Senior Manager
Senior Manager
avatar
Joined: 27 Jul 2006
Posts: 299
Followers: 1

Kudos [?]: 6 [0], given: 0

GMAT Tests User
 [#permalink] New post 16 Mar 2007, 04:46
This is a tricky one.

Mostly because of the language...

I want to pick D.

The problem with both D and E.

E. If prices drop at a similar rate this means that they are adopting technology at a similar rate...we are making the assumption that there is no other way or reason to lower prices...Maybe it is a price war, and the margins are contracting

D. I like the answer, but again this is assuming that there is no other element besides technology to squeeze a competitor.

I understand why the OA is E. Mostly because the passage is about the relationship between technology and cost. Not about technology and the global marketplace...but the logic is still flawed
Manager
Manager
User avatar
Joined: 22 Feb 2007
Posts: 165
Followers: 2

Kudos [?]: 7 [0], given: 0

OA [#permalink] New post 16 Mar 2007, 04:55
D and E are both not very convincing. I choose D. But am still not convinced why the OA is E.

Can anyone shed any light on this please?
Director
Director
avatar
Joined: 29 Jul 2006
Posts: 877
Followers: 3

Kudos [?]: 13 [0], given: 0

GMAT Tests User
 [#permalink] New post 16 Mar 2007, 22:09
The argument says that
A:manufacturers in a given country are slower to adopt new technologies than their foreign competitors are
B: their production costs will fall more slowly than their foreign competitors’ costs will.
and
C:those manufacturers will be unable to lower their prices as rapidly as their foreign competitors can

In all A->B->C i.e A->C
this means ~C must imply ~A
~A means atleast as fast as foreign competitors
This is what is said by E.

A leads to the final statement
X:that country gets squeezed out of the global market.
This means ~A may or may not lead to ~X
Thus what is stated in D is wrong.

Its a tricky one for sure...
Director
Director
avatar
Joined: 23 Apr 2010
Posts: 584
Followers: 2

Kudos [?]: 23 [0], given: 7

Re: When the manufacturers in a given country are slower to [#permalink] New post 03 Dec 2011, 08:55
Quote:
(E) If a country’s manufacturers can lower their prices as rapidly as their foreign competitors, this shows that they adopt new technology at least as fast as their foreign competitors do.


How come that it shows that they adopt new technology as fast as their competitors? What if they're lowering the prices because it's the only way to survive?

Please explain
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Status: Flying over the cloud!
Joined: 16 Aug 2011
Posts: 796
Location: Viet Nam
Concentration: International Business, Marketing
Schools: Duke '16
GMAT Date: 06-06-2014
GPA: 3.07
Followers: 32

Kudos [?]: 162 [0], given: 40

GMAT ToolKit User Premium Member CAT Tests
Re: [#permalink] New post 05 Dec 2011, 06:43
vineetgupta wrote:
The argument says that
A:manufacturers in a given country are slower to adopt new technologies than their foreign competitors are
B: their production costs will fall more slowly than their foreign competitors’ costs will.
and
C:those manufacturers will be unable to lower their prices as rapidly as their foreign competitors can

In all A->B->C i.e A->C
this means ~C must imply ~A
~A means atleast as fast as foreign competitors
This is what is said by E.

A leads to the final statement
X:that country gets squeezed out of the global market.
This means ~A may or may not lead to ~X
Thus what is stated in D is wrong.

Its a tricky one for sure...


My first choice is D, although the OA is E. I was not convinced, but I realize that we have to give the right choice based on the fact of argument, not the world outside. In the logical flow as vineetgupta reason, I am really convinced. Thanks.
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you :)

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Director
Director
avatar
Status: Prep started for the n-th time
Joined: 29 Aug 2010
Posts: 708
Followers: 5

Kudos [?]: 93 [0], given: 37

GMAT Tests User
Re: When the manufacturers in a given country are slower to [#permalink] New post 05 Dec 2011, 19:58
+1 for E, by applying Conditional Reasoning.

Crick
Senior Manager
Senior Manager
avatar
Joined: 13 Aug 2010
Posts: 316
Followers: 1

Kudos [?]: 7 [0], given: 1

GMAT Tests User
Re: When the manufacturers in a given country are slower to [#permalink] New post 05 Dec 2011, 22:15
D is out, since the argument doesn't include any reference to what happens when the two countries are equal. It is just talking about what happens if they are not equal.

+ 1 for E
Intern
Intern
avatar
Joined: 19 Feb 2012
Posts: 17
Followers: 0

Kudos [?]: 1 [0], given: 1

GMAT ToolKit User
Re: When the manufacturers in a given country are slower to [#permalink] New post 01 Mar 2013, 06:18
Hi Guys

This is how you solve it logically.

T = Rate of adoption of new technology
C = Rate of cost reduction
P = rate of price reduction
S = Manufacturer gets to stay in market

T*= T_Manufacturer<T_Competitor
-T*= T_Manufacturer≥T_Competitor
C*= C_Manufacturer<C_Competitor
-C*= C_Manufacturer≥C_Competitor
P*= P_Manufacturer<P_Competitor
-P*= P_Manufacturer≥P_Competitor

T* → C* : Premise 1
C* → P* : Premise 2
P* → S : Premise 3

A. A is unsupported by the premises
B. Shows the following conclusion S→ T*, However, law of syllogism suggests T*→S, therefore B is wrong.

C. Shows the following conclusion C*→ T*∪-T*, however, this conclusion is unsupported by the given premises.

D. Shows the following conclusion -T*→ -S, unfortunately this is not supported by the given premises,
However, law of syllogism suggests T*→S and by modus tollens We have -S→-T* , this logical statement is right.

E. Shows the following conclusion -P*→ -T^*
Law of syllogism suggests T*→P* and modus tollens gives -P*→-T*
Therefore E is right.

Adhil
Re: When the manufacturers in a given country are slower to   [#permalink] 01 Mar 2013, 06:18
    Similar topics Author Replies Last post
Similar
Topics:
Experts publish their posts in the topic If a country s manufacturing capacity is fully utilized, Legendaddy 3 27 Jan 2013, 13:08
2 A decade ago, the manufacturing industry of Country X could martie11 5 23 Aug 2011, 15:57
Country X imposes heavy tariffs on imported manufactured mojorising800 16 20 Jan 2010, 13:39
6 Country X imposes heavy tariffs on imported manufactured ISBtarget 29 17 Nov 2009, 19:32
Country X imposes heavy tariffs on imported manufactured noboru 14 01 Aug 2009, 12:59
Display posts from previous: Sort by

When the manufacturers in a given country are slower to

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.