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705-805 (Hard)|   Assumption|         
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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 07:23
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Bunuel
A coalition of domestic goods manufacturers argues that higher tariffs on imported raw materials will revive local production because firms will switch from cheaper imports to marginally costlier but now tariff-free domestic inputs. However, many of these manufacturers currently depend on imported inputs because they are cheaper and more readily available.

Which of the following is an assumption on which the coalition’s argument depends?

A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
C. The higher tariffs will not prompt foreign governments to retaliate in ways that substantially reduce external demand for domestically manufactured goods.
D. Any short term disruptions caused by switching suppliers will not permanently diminish the willingness of manufacturers to produce goods domestically.
E. Replacing imported raw materials with domestic ones will not reduce the quality of the products local firms manufacture.

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A: Incorrect - The above argument is not centered around keeping the competitiveness intact. Hence, we can eliminate this option.

B: Correct - This is a key assumption. The manfucturers must be willing to switch for the plan to work.

C: Incorrect - This is out of scope. How do the foreign governments react is not of contention.

D: Incorrect - Even if this occurs for some suppliers, we can still ensure that the plan worked.

E: Incorrect - The goal is not centered around quality. Hence, we can eliminate this.

Option B
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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 07:30
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Conclusion- Higher tariffs on imported raw material will revive local production
Reason- Firms will switch from cheaper imports to marginally costly but tariff free domestic inputs.
Additional information- many of these manufacturers currently depend on imported inputs--cheaper and availability.
assumption ??
A. discusses competitiveness in international markets ,nowhere discussed ---out
C. discusses reason which will reduce demand in international market, however the argument is about the domestic production revival.--out
D. supposes a condition which may or may not arrive-non sure---hence out
E. discuses reason regarding reduction in quality of products --out
B. correctly fills the gap between the reason and the conclusion as the scheme will be successful if manufacturers have trust on local inputs--correct
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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 07:38
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B. The coalition's claim hinges on firms actually switching from imports to domestic inputs. Since imports are currently cheaper and more readily available, the argument assumes domestic suppliers can reliably meet firms need which fits
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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 07:41
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The coalition's plan addresses the "cheaper" part by higher tariffs on imported raw material but it doesn't talk about the "readily availability" of the the imported inputs. The correct choice will address this gap.

A. Incorrect. We're not concerned about international markets.

B. This directly addresses the logical gap we identified in our pre-thinking. This is the necessary assumption.

C. Incorrect. This choice talks about international demands which is irrelevant.

D. Incorrect. This is possible case but it's not the required assumption.

E. Incorrect. This is also possible but is it necessary for the conclusion to hold true? A manufacturer might be willing to accept a slight dip in quality provided the cost savings are significant. This doesn't break the conclusion.

Option B


Bunuel
A coalition of domestic goods manufacturers argues that higher tariffs on imported raw materials will revive local production because firms will switch from cheaper imports to marginally costlier but now tariff-free domestic inputs. However, many of these manufacturers currently depend on imported inputs because they are cheaper and more readily available.

Which of the following is an assumption on which the coalition’s argument depends?

A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
C. The higher tariffs will not prompt foreign governments to retaliate in ways that substantially reduce external demand for domestically manufactured goods.
D. Any short term disruptions caused by switching suppliers will not permanently diminish the willingness of manufacturers to produce goods domestically.
E. Replacing imported raw materials with domestic ones will not reduce the quality of the products local firms manufacture.

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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 08:34
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In my view, the answer is B.
We need to revive local production, and local materials will be cheaper. However, we learn that manufacturers depend on imports and their availability, not just the price.
Therefore, if manufacurers don't regard domestic suppliers as reliable enough, no tariff can change their preference.

Both A and E are out of scope. C is also not really relevant since it highlight the difficulties in external demand, and we're not sure that it's all about exports.

D isn't too bad, but it says that such tariffs will disrupt the whole manufacturing indusrty, but it's the step after the one we're considering. Like, it's a longer term impact, since in the prompt we strictly care abot imposing tariffs to boost production.
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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 08:35
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A -> This is about imports not competitiveness in international markets
B -> This is necessary. If this does not happen then even with higher tariffs manufacturers would prefer the imported materials.
C -> What happens win other countries does not affect the argument
D -> The result of switching to the domestic suppliers does not dictate the logic for switching
E -> This goes beyond the passage and again refers to the result post switching

Option B
Bunuel
A coalition of domestic goods manufacturers argues that higher tariffs on imported raw materials will revive local production because firms will switch from cheaper imports to marginally costlier but now tariff-free domestic inputs. However, many of these manufacturers currently depend on imported inputs because they are cheaper and more readily available.

Which of the following is an assumption on which the coalition’s argument depends?

A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
C. The higher tariffs will not prompt foreign governments to retaliate in ways that substantially reduce external demand for domestically manufactured goods.
D. Any short term disruptions caused by switching suppliers will not permanently diminish the willingness of manufacturers to produce goods domestically.
E. Replacing imported raw materials with domestic ones will not reduce the quality of the products local firms manufacture.

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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 08:42
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The argument of the text above can be simplified as the following:

Increase of tariffs ==> Revival of local firms

And in order for this to happen we need that the local firms must remain competitive otherwise the implication will not work.

Hence IMO A!
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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 08:46
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Putting higher tariff on imported raw material WILL revive local production of raw materials

So, here is the link on which the argument depends.
Now, tell me a condition in which this link is weakened. Maybe, if local producers can't produce enough quality or in sufficient quality standard the local manufacturers will require. Any weakness apart from price would be valid.
My objective here is not to guess the answer, but, to set the context of what we need to look for in the argument.

[note - here "domestic input for the firms" means raw materials for the firm that are produced domestically.]

Now that we are all set, look for an answer choice which Defends our link from any possible objection apart from price. (because price has already been considered in the argument)
Bunuel
A coalition of domestic goods manufacturers argues that higher tariffs on imported raw materials will revive local production because firms will switch from cheaper imports to marginally costlier but now tariff-free domestic inputs. However, many of these manufacturers currently depend on imported inputs because they are cheaper and more readily available.

Which of the following is an assumption on which the coalition’s argument depends?

A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
C. The higher tariffs will not prompt foreign governments to retaliate in ways that substantially reduce external demand for domestically manufactured goods.
D. Any short term disruptions caused by switching suppliers will not permanently diminish the willingness of manufacturers to produce goods domestically.
E. Replacing imported raw materials with domestic ones will not reduce the quality of the products local firms manufacture.

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A. We are not at all concerned about sales and that too in the international market. Just that, the firms will adopt local inputs or not?
B. Okay, even if they don't regard them as reliable enough, will this single reason alone stop the firms from opting for local inputs? [Vague choice]
C. Same as option A, what other government do is none of our concern
D. What kind of short-term disruption, if any, it's not a main point of the argument anyway.
E. Absolutely true, if it reduces the quality, the Firms will get a very strong reason to not select domestic inputs. Hence very strong choice.

Hope it helps,
Thanks :)
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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 08:51
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Summary: Firms rely on imported inputs because they are cheaper and more readily available. So higher tariffs on these imported things will revive local production as firms will switch to domestics inputs instead.

A. Incorrect. International competitiveness is irrelevant since the argument is about reviving local production.
B. CORRECT. Negate B -> firms will face shortages or unable to maintain their production. This will break the argument.
C. Incorrect. This can weaken the argument, but not necessary for the argument to hold.
D. Incorrect. Even with some disruption, local production could still revive and this statement is not necessary required.
E. Incorrect. Quality issues could happen and the argument does not require this to hold.
Bunuel
A coalition of domestic goods manufacturers argues that higher tariffs on imported raw materials will revive local production because firms will switch from cheaper imports to marginally costlier but now tariff-free domestic inputs. However, many of these manufacturers currently depend on imported inputs because they are cheaper and more readily available.

Which of the following is an assumption on which the coalition’s argument depends?

A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
C. The higher tariffs will not prompt foreign governments to retaliate in ways that substantially reduce external demand for domestically manufactured goods.
D. Any short term disruptions caused by switching suppliers will not permanently diminish the willingness of manufacturers to produce goods domestically.
E. Replacing imported raw materials with domestic ones will not reduce the quality of the products local firms manufacture.

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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 08:51
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A. Irrelevant as it isnt required since the argument is about reviving local production and not export success
B. Relevant since if the assumption is to be false, we see that the firms will have to continue imported inputs even if tariffs rise and the proposed structure will fail which would cause an issue in the conclusion. Therefore its a necessary assumption
C. Irrelevant as the argument doesent look at export demand remaining constant
D. Irrelevant as short term disruptions is not seen to negate the main logic here
E. Irrelevant since even if the quality reduces, the production will still go on to a good extent

B.
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12 Days of Christmas GMAT Competition 2025 - Day 8: A coalition of 25 Dec 2025, 08:54
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Another assumption questions, so we need to ask ourselves, "will not assuming what we see in the answer choice, or assuming the opposite, lead the argument to fail?"

Here, domestic manufacturers belief imported raw material should be tariffed, to revive local production, as this'll turn the tariff-free domestic inputs relatively cheaper.

However, it adds, these manufacturers themselves depend on imported inputs. So it might just be a "darned if you do, darned if you don't" situation for the manufacturers.

Let's see which assumption makes the most sense.

A: This isn't relevant. We need the assumption to highlight how, as the coalition argues, higher tariffs will help revive local production; we aren't quite concerned with how the market fares internationally.

B: Yes, this is a key assumption for the argument. If despite the international tariffs, manufacturers don't shift to domestic suppliers, it might have to do with a lack of trust and reliability.

C: If foreign players act against the country in question's international market presence, that only really justifies the continuation of these tariffs - while the dynamics of local production won't have a direct impact. Reject.

D: We're talking about manufacturer sentiment here. This disruption, despite the disillusionment it may cause, even if permanently, will have to be resolved insofar as the manufacturer wishes to continue generating revenue.

E: Even if domestic raw material reduces the quality, the key point being debated is tariffs vs non-tariffs, not quality. Quality may figure after such a switch happens - after said revival. Plus, a product can compensate for raw materials' defects with other innovation.
Bunuel
A coalition of domestic goods manufacturers argues that higher tariffs on imported raw materials will revive local production because firms will switch from cheaper imports to marginally costlier but now tariff-free domestic inputs. However, many of these manufacturers currently depend on imported inputs because they are cheaper and more readily available.

Which of the following is an assumption on which the coalition’s argument depends?

A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
C. The higher tariffs will not prompt foreign governments to retaliate in ways that substantially reduce external demand for domestically manufactured goods.
D. Any short term disruptions caused by switching suppliers will not permanently diminish the willingness of manufacturers to produce goods domestically.
E. Replacing imported raw materials with domestic ones will not reduce the quality of the products local firms manufacture.

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