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

(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.