A small country, Country S, has instituted a hefty tax on

Question

A small country, Country S, has instituted a hefty tax on imported electronics in an attempt to protect the largest company and employer in the country. As a result of this import tax, the national electronics company is now able to compete in the electronics market.

Which of the following can be inferred from the information above?

Only small quantities of electronics from companies outside of Country S will now be sold in Country S.
 
To take further advantage of the import tax, the national electronics company will expand its product line.
 
Electronics have become more expensive to import not only due to the added import taxes but also due to increased transportation costs.
 
Electronics are cheaper to produce outside Country S than inside Country S. 
 
The national electronics company not only sells electronics products in Country S but also exports them to Country T and Country U.

OA  D . However, how is it inferred? Which sentence talks about OA?

amma4u · Answer

IMO E......this is by infering from the last stmt, that after the hefty taxes the company can compete

moonstone · Answer

Is it D?

sidhu4u · Answer

Can anyone explain this? It looks to me like E should be the right answer. They are able to compete in the market by exporting.

D seems wrong to me. People could be importing electronics from other countries into Country S for reasons other than cheap costs abroad. There could be factors like quality being better abroad, certain models being available only abroad, etc. Hence cost does not seem to be a logical inference.

gurpreetsingh · Answer

I will go wid d

OA pls

vannbj · Answer

This is an ambiguous question. I don't really like any of the answers. And D assumes too much to be inferred from the passage.

alexBLR · Answer

This is the "Family #1" (refer to PowerScore CR Bible) question, that means that you can/need to assume that the stimulus is true. If the statements in the stimulus is true, than the the cost is the determining factor in the competition between Country's S electronics company and importing companies(refer to premise:"As a result of this import tax"). As this is the case we can eliminate all the other oportunities and focus on money attribute only.
Hope it helps.

I personaly chose D, but recognize the question imperfection. One example: the importing companies could be dumping their product for less than it cost to produce so they can gain market share, reputation, etc.

gurpreetsingh · Answer

Yes, in Gmat its not about what is ideally true.
We need to choose the best answer which might not be 100% true.

Zatarra · Answer

The national electronics company became profitable only after taxes on imported electronics were increased.
The increase in taxes can only result in increase in selling price of imported electronics.
Then the argument has to centre around the manufacturing cost.Therefore,D.

sidhu4u · Answer

Yes. I understand now. So basically in inference questions we dont take note of details that are outside the sphere of the stimulus. The answer must derive itself logically from only the facts in the stimulus. Thanks.

ykaiim · Answer

IMO D.

A small country, Country S, has instituted a hefty tax on imported electronics in an attempt to protect the largest company and employer in the country. As a result of this import tax, the national electronics company is now able to compete in the electronics market.
Which of the following can be inferred from the information above?

Only small quantities of electronics from companies outside of Country S will now be sold in Country S.  Incorrect ]

To take further advantage of the import tax, the national electronics company will expand its product line.  Incorrect ]

Electronics have become more expensive to import not only due to the added import taxes but also due to increased transportation costs.  Incorrect ]

Electronics are cheaper to produce outside Country S than inside Country S.  Correct  ]

The national electronics company not only sells electronics products in Country S but also  exports  them to  Country T and Country U .  Incorrect ]

A small country, Country S, has instituted a hefty tax on

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