An interesting approach to reducing the Unites States’ trade deficit

Question

An interesting approach to reducing the Unites States’ trade deficit has been suggested: relax export restrictions to China. That this suggestion has come from the President of the People’s Republic of China perhaps warrants some skepticism. That this idea is seconded by U.S. trade groups that represent aerospace, software, and microchip manufacturers, all of whom produce equipment that can be used for military purposes, also gives one pause. Despite some reforms, real and promised, China’s “private” sector is too entangled with a government whose aims and actions are frequently at odds with U.S. policy and ideology.

To expedite “safe” trade with China, the U.S. has recently compiled a list of acceptable Chinese businesses with which our high-tech firms can trade. This replaces a system that required that exporters take the time—sometimes a considerable amount—to get licenses for the items they wished to export. Supposedly, the new system has stringent criteria that ensure that the Chinese firms will only use the imported goods for non-military purposes. Many of these products are, however, dual-purpose; they have military as well as commercial applications. Despite assurances that ground checks will prevent imported goods from being diverted for military purposes, China is simply too big, and the links between its companies and its government agencies too byzantine, for these assurances to be meaningful.

Another area in which trade with China needs to be handled carefully is that of intellectual property. Here, U.S. companies are largely on their own; our government can establish guidelines and issue warnings, but it cannot take a direct part in legal actions pursued by an American firm that believes its patents, trademarks, or copyrights have been violated. This is no small problem. About 20% of all consumer products in the Chinese market are counterfeit. China’s government has taken some steps to address this problem, but these steps have not yet resulted in enough punishment for those who pirate intellectual property to serve as much of a deterrent to others. Furthermore, what the central government promises is one thing; what provincial governments do is another. Corruption, protectionism, and apathy contribute to a climate in which pirating is considered business as usual by local officials located at great distances from the central government.   1 
 OA B 
1. Which of the following, if true, would most weaken the author’s assumptions regarding the effectiveness of the new system of controlling high-tech trade to China?

(A) Several local police chiefs in remote provinces have been demoted for taking bribes to not enforce pirating laws.
(B) New practices in China have led to greater transparency of the connections between companies and government agencies.
(C) Several U.S. manufacturing firms have expressed reservations regarding the list of acceptable exports.
(D) The new policy makes clear that any business that exports items that are not on the list of acceptable exports will be subject to large fines, and that the company’s chief officers will likely face jail sentences.
(E) The list of acceptable exports makes clear which ones have military applications.

2 
Q2. The attitude of the author of the passage toward trade with China is best described as one of _______.

A) skeptical advocacy 
B) disinterested description 
C) considered wariness 
D) amused fascination 
E) troubled confusion

3 
Q3. According to the author, the new system of exporting high-tech goods to China _______.

A) is an imperfect improvement over the old system 
B) can take too much time to be truly effective 
C) will almost certainly be adversely affected by local corruption 
D) aims to speed up the process of receiving approval for the exportation of some goods 
E) will only apply to items that can be used for military purposes

4 
Q4. One issue that affects both high-tech exports and intellectual property rights is ______________.

A) the difficulty of knowing what is truly going on in all parts of the country 
B) that some products intended for commercial use can have military applications 
C) the lack of interest in monitoring illegal activity of this sort on the part of provincial governments 
D) the willingness of some American firms to do business with China without due consideration of the political repercussions 
E) too many of China's products infringe on existing patents, trademarks, and copyrights

ritikasingh · Answer

Here’s what I think:

New system : Compiling a list of acceptable Chinese Businesses.
 Effectiveness of this new system : To expedite “safe” trade.
 Assumption regarding effectiveness of this new system : If they follow this “New System”, US govt will be able to expedite safe trade.

Weakening the assumption : If the new practices in China lead to greater transparency, then there is no point in implementing this new system.

See lines “China’s “private” sector is too entangled with a government whose aims and actions are frequently at odds with U.S. policy and ideology”.

If there is transparency, this system need not be implemented, and hence won’t be effective(obviously).

kkrrsshh · Answer

My take:
Lets focus on second para for this.
Now break down the question:
What are author's assumptions regarding effectiveness? 
One assumption: The new system will not be effective as the links between companies and government are byzantine.

What weakens this assumption?
If there is transparency between companies and government, then it wouldnt be as byzantine as it seems and tracking/tracing of US exports will be possible. Thus, new system will be effective.

Is my understanding correct?

gmathunk · Answer

Q2. The attitude of the author of the passage toward trade with China is best described as one of _______.
 A) skeptical advocacy 
 B) disinterested description 
 C) considered wariness 
 D) amused fascination 
 E) troubled confusion

Q3. According to the author, the new system of exporting high-tech goods to China _______.
 A) is an imperfect improvement over the old system 
 B) can take too much time to be truly effective 
 C) will almost certainly be adversely affected by local corruption 
 D) aims to speed up the process of receiving approval for the exportation of some goods 
 E) will only apply to items that can be used for military purposes

Q4. One issue that affects both high-tech exports and intellectual property rights is ______________.
 A) the difficulty of knowing what is truly going on in all parts of the country 
 B) that some products intended for commercial use can have military applications 
 C) the lack of interest in monitoring illegal activity of this sort on the part of provincial governments 
 D) the willingness of some American firms to do business with China without due consideration of the political repercussions 
 E) too many of China's products infringe on existing patents, trademarks, and copyrights

OA Q2. C, Q3. D, Q4. A

anairamitch1804 · Answer

I believe your understanding towards this question is correct.

anairamitch1804 · Answer

I understand Q2 and Q3. However, I am very much skeptical about Q4, unable to understand how come the answer is A and not E when information is explicitly mentioned in Paragraph 3.

GMATYoda · Answer

Veritas Prep Official Solution:

Question No. 4

The second paragraph which deals with high-tech exports states that "china is simply too big..."

The third paragraph which deals with intellectual property, states that there are problems with "local officials located at great distances from the central government."
(B): This is mentioned regarding high-tech exports only.
(C): This is mentioned regarding intellectual property only.
(D): This is not specified anywhere, though this 1st paragraph suggests this possibility regarding high-tech exports only.
(E): This is alluded to in the last paragraph, regarding intellectual property. 
The 1st and 2nd paragraph doesn't mention that high-tech exports violate any intellectual property laws.

GittinGud · Answer

7 minutes, 3/4 correct. Can someone please explain Q3? Why is option A incorrect? The new system is an improvement in that companies need not go through the cumbersome process of applying for licences and it is imperfect because the exported goods could be used for military purposes.

Help is greatly appreciated. Thanks!

Help is greatly appreciated. Thanks!

gmexamtaker1 · Answer

GittinGud  you can find the answer on par 2 "" This replaces a system that required that exporters take the time—sometimes a considerable amount—to get licenses for the items they wished to export " , well the reason that it isn't A in my opinion is that D is more to the point. A is general and it doesn't get verified by the passage ... what if the author believes that the speeding up of the process might actually had a negative impact, there isn't a positive change in the "tone".

Pranjal3107 · Answer

the new system has stringent criteria that ensure that the Chinese firms will only use the imported goods for non-military purposes.
Hi, I thought the above line gave a little positive tone and then it was modified by saying that there is a huge entaglement, more complex so it will likely not work. What do you think ?

KeyurJoshi · Answer

Can anyone explain why answer to Q4 is A, as C talks about the chinese govt ignoring the ground checks in trade and piracy for intellectual property. Isnt that really the issue rather whats going on in the parts of the country?

Sajjad1994 · Answer

Official Explanation

Q4. One issue that affects both high-tech exports and intellectual property rights is ______________.

Difficulty Level:   Hard

Explanation

The  2nd paragraph , which deals with high-tech exports states that  “China is simply too big...”  The  3rd paragraph , which deals with intellectual property, states that there are problems with  “local officials located at great distances from the central government.”

(B):  This is mentioned regarding high-tech exports only.

(C):  This is mentioned regarding intellectual property only.

(D):  This is not specified anywhere, though the  1st paragraph  suggests this possibility regarding high-tech exports only.

(E):  This is alluded to in the  last paragraph , regarding intellectual property. The 1st or 2nd paragraph does not mention that high-tech exports violate any intellectual property laws.

Answer: A

thakurarun85 · Answer

Please provide an explanation for Q2.

Sajjad1994 · Answer

Sometimes one word, sometimes a few words, and another we have to pick many instances from the passage to realize the tone of the author. In this passage, I think paragraphs one and three (mainly) provide the answer to the question.

From Para 1:

Despite  some reforms, real and promised, China’s “private” sector is too entangled with a government whose aims and actions are frequently at odds with U.S. policy and ideology.

From Para 3:

Another area in which trade with China  needs to be handled carefully  is that of intellectual property.

government can establish guidelines and issue warnings, but it cannot take a direct part in legal actions

This is no small problem. About 20% of all consumer products in the Chinese market are counterfeit.

All these instances in the passage reveal the warisome of the author regarding trade with china.

C is the best answer:

VerbalBot · Answer

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An interesting approach to reducing the Unites States’ trade deficit

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An interesting approach to reducing the Unites States’ trade deficit

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