Arboria is floundering in the global marketplace, incurring : Reading Comprehension Practice Questions

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KarishmaB
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I would be so appreciative for your opinion on the following questions (I apologize in advance for my long post, but I am really trying to wrestle with this passage to become a true GMAT champ):
For question 494 (which of the following best states the difference between free trade and fair trade, as explained in the passage): I was confused and initially chose choice C. The passage basically says that it is only Arboria that has free trade. The conflict between proponents of "free" and "fair" trade seems to imply that the rest of the world is following "fair" trade... thereby prompting??proponents of "fair trade" to go against Arboria's existing free trade policy. I now see why choice B is better, but how can we not make an inference from the passage that the rest of the world follows fair trade based on this?

For question 497 (the author mentions all of the following as characteristic of world trade in the mid-1940s EXCEPT): I see why Choice D is correct, but for Choice E, where does the author mention specifically Arborian "manufacturers"???

For question 498 (in presenting the argument in the passage, the author uses all of the following??except): For Choice C, the Official Guide says that "the passage??states that the supremacy of Arboria in most industries was for a long time uncontested" is a generalization. I would be so appreciative if an expert can break this down for me as to why this is a generalization. I thought that choice E WAS mentioned because the passage states "world trade is no longer dominated by the free-trade economies; nearly 75% is conducted by economic systems operating with principles at odds with those of Arboria." Doesn't this disprove Choice E? It tells you more than one economic system is not based on free-trade.

Thank you! :)

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22 Jun 2022, 16:02

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KarishmaB
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I would be so appreciative for your opinion on the following questions (I apologize in advance for my long post, but I am really trying to wrestle with this passage to become a true GMAT champ):
For question 494 (which of the following best states the difference between free trade and fair trade, as explained in the passage): I was confused and initially chose choice C. The passage basically says that it is only Arboria that has free trade. The conflict between proponents of "free" and "fair" trade seems to imply that the rest of the world is following "fair" trade... thereby prompting??proponents of "fair trade" to go against Arboria's existing free trade policy. I now see why choice B is better, but how can we not make an inference from the passage that the rest of the world follows fair trade based on this?

Question 1 (book question #494)

Overall, the passage argues that Arboria is "floundering in the global market place" because it has bad trade policy. More specifically, it is too focused on the question of free trade versus fair trade. Instead of worrying about "free trade versus protectionism," it should be focused on expanding trade.

Developing this idea, the author tell us in the third paragraph that Arboria's trade policy is paralyzed by the debate between "proponents of 'free' and 'fair' trade." Notice, however, the passage doesn't confirm which side of the debate has won, but only that there is a debate.

In the fourth paragraph, we learn that "world trade is no longer dominated by the free-trade economies." But this doesn't mean that the world is necessarily dominated by fair trade economies. For all we know, there could be several other types of economies besides free trade or fair trade, and one of those could be dominant. Because we don't know any specifics about "other world economies," or what type of trade they practice, we can't conclude that most of them have adopted fair trade.

Let's now consider (C):

Quote:

494. Which of the following best states the difference between free trade and fair trade, as explained in the passage?

C. The trade policies of countries like Arboria are based on the principles of free trade, whereas the trade policies of other types of world economies are based on fair trade.

Since Arboria is debating free trade versus fair trade, we can't conclude that one is necessarily dominant over the other. And while we know that the world is "no longer dominated by free-trade economies," this doesn't mean that most world economies have adopted fair trade, since they could have adopted some other type of trade policy. So we can't conclude that "other types of world economies are based on fair trade." For both these reasons, (C) is incorrect.

Question 4 (book question #494)

woohoo921

For question 497 (the author mentions all of the following as characteristic of world trade in the mid-1940s EXCEPT): I see why Choice D is correct, but for Choice E, where does the author mention specifically Arborian "manufacturers"???

Quote:

497. The author mentions all of the following as characteristic of world trade in the mid-1940s EXCEPT:

E. Arborian manufacturers were unsurpassed in most industries.

While discussing world trade, the second paragraph tell us that "Arborian supremacy was uncontested in virtually all industries." In other words, Arborian goods and services were dominant throughout the world. And if Arborian goods were dominant, that must be because the producers of those goods (i.e. manufacturers) were "unsurpassed in most industries." For that reason, (E) is incorrect.

Question 5 (book question #498)

woohoo921

For question 498 (in presenting the argument in the passage, the author uses all of the following??except): For Choice C, the Official Guide says that "the passage??states that the supremacy of Arboria in most industries was for a long time uncontested" is a generalization. I would be so appreciative if an expert can break this down for me as to why this is a generalization. I thought that choice E WAS mentioned because the passage states "world trade is no longer dominated by the free-trade economies; nearly 75% is conducted by economic systems operating with principles at odds with those of Arboria." Doesn't this disprove Choice E? It tells you more than one economic system is not based on free-trade.

Quote:

498. In presenting the argument in the passage, the author uses all of the following EXCEPT:
C. generalizations about Arboria's economic system

Simply put, a generalization is a general statement. For example, if I say "apples are delicious," that's a generalization. I'm not talking about some specific apple, but apples in general. Similarly, the passage makes the following statement about Arborian industries: "Arborian supremacy was uncontested in virtually all industries." It's not talking about some particular Arborian industry, but about Arborian industries in general. This makes it a generalization, so (C) is incorrect.

Let's now consider (E):

Quote:

E. an example of an economic system whose principles differ from those of Arboria

As you say, the passage tell us that world trade is no longer dominated by free trade economies. However, we are never given an example of one of these economies. In other words, the author makes a general statement about various world economies, but we are never given a specific example of a particular world economy. Since the passage never gives "an example of an economic system whose principles differ from those of Arboria," (E) is correct.

I hope that helps!

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woohoo921

KarishmaB
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I would be so appreciative for your opinion on the following questions (I apologize in advance for my long post, but I am really trying to wrestle with this passage to become a true GMAT champ):
For question 494 (which of the following best states the difference between free trade and fair trade, as explained in the passage): I was confused and initially chose choice C. The passage basically says that it is only Arboria that has free trade. The conflict between proponents of "free" and "fair" trade seems to imply that the rest of the world is following "fair" trade... thereby prompting??proponents of "fair trade" to go against Arboria's existing free trade policy. I now see why choice B is better, but how can we not make an inference from the passage that the rest of the world follows fair trade based on this?

Question 1 (book question #494)

Overall, the passage argues that Arboria is "floundering in the global market place" because it has bad trade policy. More specifically, it is too focused on the question of free trade versus fair trade. Instead of worrying about "free trade versus protectionism," it should be focused on expanding trade.

Developing this idea, the author tell us in the third paragraph that Arboria's trade policy is paralyzed by the debate between "proponents of 'free' and 'fair' trade." Notice, however, the passage doesn't confirm which side of the debate has won, but only that there is a debate.

In the fourth paragraph, we learn that "world trade is no longer dominated by the free-trade economies." But this doesn't mean that the world is necessarily dominated by fair trade economies. For all we know, there could be several other types of economies besides free trade or fair trade, and one of those could be dominant. Because we don't know any specifics about "other world economies," or what type of trade they practice, we can't conclude that most of them have adopted fair trade.

Let's now consider (C):

Quote:

494. Which of the following best states the difference between free trade and fair trade, as explained in the passage?

C. The trade policies of countries like Arboria are based on the principles of free trade, whereas the trade policies of other types of world economies are based on fair trade.

Since Arboria is debating free trade versus fair trade, we can't conclude that one is necessarily dominant over the other. And while we know that the world is "no longer dominated by free-trade economies," this doesn't mean that most world economies have adopted fair trade, since they could have adopted some other type of trade policy. So we can't conclude that "other types of world economies are based on fair trade." For both these reasons, (C) is incorrect.

Question 4 (book question #494)

woohoo921

For question 497 (the author mentions all of the following as characteristic of world trade in the mid-1940s EXCEPT): I see why Choice D is correct, but for Choice E, where does the author mention specifically Arborian "manufacturers"???

Quote:

497. The author mentions all of the following as characteristic of world trade in the mid-1940s EXCEPT:

E. Arborian manufacturers were unsurpassed in most industries.

While discussing world trade, the second paragraph tell us that "Arborian supremacy was uncontested in virtually all industries." In other words, Arborian goods and services were dominant throughout the world. And if Arborian goods were dominant, that must be because the producers of those goods (i.e. manufacturers) were "unsurpassed in most industries." For that reason, (E) is incorrect.

Question 5 (book question #498)

woohoo921

For question 498 (in presenting the argument in the passage, the author uses all of the following??except): For Choice C, the Official Guide says that "the passage??states that the supremacy of Arboria in most industries was for a long time uncontested" is a generalization. I would be so appreciative if an expert can break this down for me as to why this is a generalization. I thought that choice E WAS mentioned because the passage states "world trade is no longer dominated by the free-trade economies; nearly 75% is conducted by economic systems operating with principles at odds with those of Arboria." Doesn't this disprove Choice E? It tells you more than one economic system is not based on free-trade.

Quote:

498. In presenting the argument in the passage, the author uses all of the following EXCEPT:
C. generalizations about Arboria's economic system

Simply put, a generalization is a general statement. For example, if I say "apples are delicious," that's a generalization. I'm not talking about some specific apple, but apples in general. Similarly, the passage makes the following statement about Arborian industries: "Arborian supremacy was uncontested in virtually all industries." It's not talking about some particular Arborian industry, but about Arborian industries in general. This makes it a generalization, so (C) is incorrect.

Let's now consider (E):

Quote:

E. an example of an economic system whose principles differ from those of Arboria

As you say, the passage tell us that world trade is no longer dominated by free trade economies. However, we are never given an example of one of these economies. In other words, the author makes a general statement about various world economies, but we are never given a specific example of a particular world economy. Since the passage never gives "an example of an economic system whose principles differ from those of Arboria," (E) is correct.

I hope that helps!

GMATNinja

I cannot thank you enough for your thorough response!

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Calling GMATNinja for further help on question 4 (497). I read your answer but it was more specific to answer why E can be eliminated, not complete explanation for other choices. Can you please offer more insights into how to eliminate these choices and prove the D is right?

I was struggling selecting between D vs E. Clearly the passage has a strong support for option D so how can it be the right answer?

“World trade is no longer dominated by the free-trade economies; nearly 75 percent is conducted by economic systems operating with principles at odds with those of Arboria.” I interpret this as the world trade was dominated back then. And that means D should be an incorrect choice

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Question 4 (book question #497)

mindsf

Calling GMATNinja for further help on question 4 (497). I read your answer but it was more specific to answer why E can be eliminated, not complete explanation for other choices. Can you please offer more insights into how to eliminate these choices and prove the D is right?

I was struggling selecting between D vs E. Clearly the passage has a strong support for option D so how can it be the right answer?

“World trade is no longer dominated by the free-trade economies; nearly 75 percent is conducted by economic systems operating with principles at odds with those of Arboria.” I interpret this as the world trade was dominated back then. And that means D should be an incorrect choice

As you suggest, the last paragraph has a key sentence:

Quote:

World trade is no longer dominated by the free-trade economies; nearly 75 percent is conducted by economic systems operating with principles at odds with those of Arboria.

This implies that international trade was dominated by free-trade economies in the 1940's, not fair-trade economies, as (D) says. So based on that (D) is correct, since the passage never says that fair-trade economies dominated.

Let's now consider another key sentence, this time from the second paragraph:

Quote:

Arboria is operating with an obsolete trade policy, an artifact of the mid-1940s when Arboria and Whorfland dominated the global economy, tariffs were the principal obstacle to trade, and Arborian supremacy was uncontested in virtually all industries.

Since Arboria dominated the global marketplace, we can eliminate (A). Since Whorfland also played a major role, we can eliminate (B). And since tariffs were the "principal obstacle to trade" we can eliminate (C).

Regarding (E), the above sentence confirms that Arboria was supreme in "virtually all industries," so we can eliminate (E).

I hope that helps!

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This is amazing but question 4 was a very tricky one.

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admission2020

Quote:

495. ???It can be inferred that the author of the passage would most likely agree with which of the following statements about multilateral trade negotiations?

A. They are the most effective way to resolve trade problems.
B. They are most effective in dealing with fair-trade issues between nations.
C. They have only recently begun to make an impact on world trade.
D. Arborian reliance on multilateral trade negotiations, while appropriate in the past, is inadequate for today's global marketplace.
E. The principles of multilateral trade negotiations are incompatible with current Arborian foreign trade policy.

GMATNinja
How to decide between D and E?

The author states at the beginning of the 3rd paragraph that Arboria's current trade policy seems "seems paralyzed by the relentless conflict between proponents of ???free??? and ???fair??? trade."

He/she goes on to say that both of these groups operate under the incorrect assumption that "multilateral negotiations are the most effective way to resolve pressing trade issues."

The reason why he/she believes that this assumption is wrong is that "forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible."

Take a look at answer choice (E) for question #495:

Quote:

E. The principles of multilateral trade negotiations are incompatible with current Arborian foreign trade policy.

From the analysis above, the author believes that those involved in Arboria's current policy are operating under the assumption that multilateral trade negotiations are the way to go. So, he/she would not agree that the principles of multilateral trade negotiations are incompatible with current policy -- he/she just thinks that the assumption regarding multilateral trade negotiations should be questioned when developing a new trade policy. (E) is out.

Quote:

D. Arborian reliance on multilateral trade negotiations, while appropriate in the past, is inadequate for today's global marketplace.

Bingo! The author believes that both "free" and "fair" trade advocates are wrong in assuming that multilateral trade negotiations are appropriate in the current marketplace.

(D) is the correct answer to question #495.

I hope that helps!

dear GMATNinjaTwo, and other experts VeritasKarishma, MartyTargetTestPrep, AndrewN,VeritasPrepBrian,GMATRockstar
KarishmaB

avigutman, AndrewN,MartyTargetTestPrep ,,
I am still confused
the passage says, forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible. and the author also says But both sides base their positions on the same two OUTDATED premises.
that's what I understand "incompatible with CURRENT " Arborian foreign trade policy. that's why picked up E.
and I am not sure where the passage says Arborian reliance on multilateral trade negotiations, the passage says And while multilateral talks drag on, Arboria misses opportunities for trade expansion. I think Arborian keeps on multilateral talks, leading it loss the opportunities, but it does not mean it relies on multilateral read negotiation. that's way I crossed off D.

please elaborate further, thank in advance

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zoezhuyan

I am still confused
the passage says, forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible. and the author also says But both sides base their positions on the same two OUTDATED premises.
that's what I understand "incompatible with CURRENT " Arborian foreign trade policy. that's why picked up E.

I didn't quote your entire post. So, for future readers I'll say here that it's about question 495.

Here's (E) from question 495.

E. The principles of multilateral trade negotiations are incompatible with current Arborian foreign trade policy.

Notice that you went from "outdated" in the passage to "incompatible with current Arborian foreign trade policy" in choice (E).

"Outdated" is a general term. "Incompatible with current Arborian foreign trade policy" is a specific issue.

Does the passage say that multilateral trade negotiations are "outdated" that specific way?

No, it does not. Rather, it says that they are outdated because "Forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible."

So, the issue is not that multilateral trade negotiations are "incompatible with current Arborian foreign trade policy." It's that they are incompatible with the current situation worldwide.

Quote:

I am not sure where the passage says Arborian reliance on multilateral trade negotiations, the passage says And while multilateral talks drag on, Arboria misses opportunities for trade expansion. I think Arborian keeps on multilateral talks, leading it loss the opportunities, but it does not mean it relies on multilateral read negotiation. that's way I crossed off D.

Here's (D).

D. Arborian reliance on multilateral trade negotiations, while appropriate in the past, is inadequate for today's global marketplace.

Now, here's the thing. That passage doesn't have to support (D) directly. Notice that the question asked is the following?

It can be inferred that the author of the passage would most likely agree with which of the following statements about multilateral trade negotiations?

So, we just need information from the passage that indicates that "the author of the passage would most likely agree with" (D).

Here's what the passage says.

First it says that people Arboria "base their positions" on the outdated premise that "Multilateral negotiations are the most effective way to resolve pressing trade issues."

Then, it says that "World trade is no longer dominated by the free-trade economies; nearly 75 percent is conducted by economic systems operating with principles at odds with those of Arboria. Forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible."

Given that the author has made those statements, it follows that the author would believe what (D) says, that in "today's global marketplace," other other words one in which there are many "economic systems operating with principles at odds with those of Arboria, and in which "Forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible," "Arborian reliance on multilateral trade negotiations, while appropriate in the past, is inadequate."

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Here's (D).

D. Arborian reliance on multilateral trade negotiations, while appropriate in the past, is inadequate for today's global marketplace.

Now, here's the thing. That passage doesn't have to support (D) directly. Notice that the question asked is the following?

It can be inferred that the author of the passage would most likely agree with which of the following statements about multilateral trade negotiations?

So, we just need information from the passage that indicates that "the author of the passage would most likely agree with" (D).

Here's what the passage says.

First it says that people Arboria "base their positions" on the outdated premise that "Multilateral negotiations are the most effective way to resolve pressing trade issues."

Then, it says that "World trade is no longer dominated by the free-trade economies; nearly 75 percent is conducted by economic systems operating with principles at odds with those of Arboria. Forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible."

Given that the author has made those statements, it follows that the author would believe what (D) says, that in "today's global marketplace," other other words one in which there are many "economic systems operating with principles at odds with those of Arboria, and in which "Forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible," "Arborian reliance on multilateral trade negotiations, while appropriate in the past, is inadequate."

thanks for your quick response, MartyTargetTestPrep ,

The 40-year-old GATT now covers less than 7 percent of global commerce. World trade is no longer dominated by the free-trade economies; nearly 75 percent is conducted by economic systems operating with principles at odds with those of Arboria. I think this refers to the GATT.
Forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible. And while multilateral talks drag on, Arboria misses opportunities for trade expansion. I think this refers to multilateral negotiations. form this part , I am not sure whether Arboria relays on multilateral trade negotiations.

MartyTargetTestPrep

Does the passage say that multilateral trade negotiations are "outdated" that specific way?

No, it does not. Rather, it says that they are outdated because "Forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible."

So, the issue is not that multilateral trade negotiations are "incompatible with current Arborian foreign trade policy." It's that they are incompatible with the current situation worldwide.

I need your further elaborate, do you think the outdated still refers to incompatible with current Arborian foreign trade policy, I guess the author thinks so , although Arborian policy didn't realized. I agree with you what you said worldwide, and the worldwide includes ARboria.

appreciate your further help.

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zoezhuyan

thanks for your quick response, MartyTargetTestPrep ,

The 40-year-old GATT now covers less than 7 percent of global commerce. World trade is no longer dominated by the free-trade economies; nearly 75 percent is conducted by economic systems operating with principles at odds with those of Arboria. I think this refers to the GATT.
Forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible. And while multilateral talks drag on, Arboria misses opportunities for trade expansion. I think this refers to multilateral negotiations. form this part , I am not sure whether Arboria relays on multilateral trade negotiations.

It's true that the passage does not explicitly say that Arboria relies on multilateral trade negotiations.

However, in discussing "Arboria's trade policy," the passage says that "both sides" believe that "Multilateral negotiations are the most effective way to resolve pressing trade issues."

If they believe that " Multilateral negotiations are the most effective way," and "multilateral talks drag on," the presumably Arborians are engaging in "multilateral talks" that they believe will be effective and, thus, are relying on those talks.

zoezhuyan

MartyTargetTestPrep

Does the passage say that multilateral trade negotiations are "outdated" that specific way?

No, it does not. Rather, it says that they are outdated because "Forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible."

So, the issue is not that multilateral trade negotiations are "incompatible with current A borian foreign trade policy." It's that they are incompatible with the current situation worldwide.

I need your further elaborate, do you think the outdated still refers to incompatible with current Arborian foreign trade policy, I guess the author thinks so , although Arborian policy didn't realized. I agree with you what you said worldwide, and the worldwide includes ARboria.

Actually, since it is the case that Arborians believe that ""Multilateral negotiations are the most effective way to resolve pressing trade issues," and they are engaging in such negotiations, then engaging in multilateral negotiations IS THEIR POLICY. So, it would be correct to say that the author would believe that multilateral trade negotiations ARE COMPATIBLE with current Arborian foreign trade policy.

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Why the answer of Q5 (499) is not B? There is a conflit between free traders and fair traders (protectionism)

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11 May 2023, 10:29

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Winataharry

Why the answer of Q5 (499) is not B? There is a conflit between free traders and fair traders (protectionism)

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I believe you mean question 6? If so, check out this post and let us know if you have any more questions!

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07 Aug 2023, 03:00

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Question, In exam I know from others that you can only see the first questions. But do they tell you how many questions will be asked on a passage? Is it normal that it takes >6mins to solve?

Also, seeing such a passage,It is not possible to solve under 6 mins as per the Quiz Forum New in Gmatclub.

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Question, In exam I know from others that you can only see the first questions. But do they tell you how many questions will be asked on a passage? Is it normal that it takes >6mins to solve?

Also, seeing such a passage,It is not possible to solve under 6 mins as per the Quiz Forum New in Gmatclub.

No! They will not tell you the number of questions attached with the passage. A short passage accompany three questions while a long passage accompany four questions as a usual practice.

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Fish181

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02 Feb 2024, 12:28

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What bothers me about this question is that in the last paragraph it states: "World trade is no longer dominated by the free-trade economies;".

Wouldn't the last part that is implied be "World trade is no longer dominated by the free-trade economies [like they were in the 1940's]"?

Now I understand that stem asks you to look for the MENTIONED i.e. EXPLICITLY STATED options, but in the OG answer guide it says that this concept was neither EXPLICITLY STATED nor IMPLIED. Which I just find false. Can anyone explain how this wasn't implied in the passage?

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09 Feb 2025, 09:52

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Hello from the GMAT Club VerbalBot!

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