GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 21 Nov 2018, 04:06

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

## Events & Promotions

###### Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
• ### All GMAT Club Tests are Free and open on November 22nd in celebration of Thanksgiving Day!

November 22, 2018

November 22, 2018

10:00 PM PST

11:00 PM PST

Mark your calendars - All GMAT Club Tests are free and open November 22nd to celebrate Thanksgiving Day! Access will be available from 0:01 AM to 11:59 PM, Pacific Time (USA)
• ### Free lesson on number properties

November 23, 2018

November 23, 2018

10:00 PM PST

11:00 PM PST

Practice the one most important Quant section - Integer properties, and rapidly improve your skills.

# AWA - Review Request - Corporations should look to the city of Helios

Author Message
Intern
Joined: 07 Dec 2012
Posts: 10
AWA - Review Request - Corporations should look to the city of Helios  [#permalink]

### Show Tags

27 Nov 2015, 07:37
1
The following appeared as part of an article in a magazine devoted to regional life:
“Corporations should look to the city of Helios when seeking new business opportunities or a new location. Even in
the recent recession, Helios’s unemployment rate was lower than the regional average. It is the industrial center of
the region, and historically it has provided more than its share of the region’s manufacturing jobs. In addition, Helios
is attempting to expand its economic base by attracting companies that focus on research and development of
innovative technologies.”
Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning and
the use of evidence in the argument. For example, you may need to consider what questionable assumptions
underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can
also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would
make it more logically sound, and what, if anything, would help you better evaluate its conclusion.

The part of an article described above attempts to attract the corporations to Helios by providing – seemingly- lucrative opportunities. However, in an attempt to do this, the article fails to provide necessary information to evaluate the claim about why corporations should consider Helios as their next destination to do the business.
The article suggests the Helios’ lower employment rate as one of the reasons why corporations should consider moving to the city. However, it provides no information to substantiate such claim or provides no reasons why low employment rate is an opportunity for the corporations. For example, the opportunities for the corporations might be better in the cities that have suffered a drastic unemployment, as they will be able to target two opportunities at once: 1. The city may offer the corporations better incentives such as low taxation or subsidies to relocate. 2. Due to high unemployment, the corporations may gain access to the labor force at a lower cost in comparison with the city that have a low unemployment rate. In such situation, it would be more likely that the corporation would prefer relocating to the city that have high unemployment, rather than moving to Helios. Therefore, having proper information with regards to how low unemployment rate would benefit the corporations will help evaluate the seriousness of the claim made in the article.
Even if, for once, we assume that the low unemployment rate is a great opportunity for the corporations to move to Helios, the article still lacks to provide necessary information about how “historically provided more of its share of the manufacturing jobs” can attract corporations to do business in Helios or relocate there. For example, due to its strong standing as a manufacturing city in the region, the suburban cities to Helios may have started offering better incentives that make them more suitable for the new businesses due to cheap real estate costs, better tax incentives and a closer proximity to Helios. In such case, the entire argument falls apart. Therefore, had the argument provided more information about how the status quo of Helios in the region would be beneficial in comparison to the other cities in the region, it would help evaluate the argument better.
From the idea of low unemployment rate, to the manufacturing status quo in the region, and an opportunity for research and development companies, the argument provides no necessary details to substantiate the claim it sets out to prove. Hence, the argument is flawed and a proper revision with the necessary information included will help evaluate the argument better.
Manager
Joined: 06 Oct 2015
Posts: 91
Re: AWA - Review Request - Corporations should look to the city of Helios  [#permalink]

### Show Tags

09 Oct 2018, 22:07
Quote:
The following appeared as part of an article in a magazine devoted to regional life:
“Corporations should look to the city of Helios when seeking new business opportunities or a new location. Even in
the recent recession, Helios’s unemployment rate was lower than the regional average. It is the industrial center of
the region, and historically it has provided more than its share of the region’s manufacturing jobs. In addition, Helios
is attempting to expand its economic base by attracting companies that focus on research and development of
innovative technologies.”

The argument that corporations should look to the city of Helios when seeking new business omits some important concerns that needs to be addressed to substantitate the argument. The statements that follow the description of what corporations should do simply describes a prevalent condition in Helios and an incentive for a spefic kind of business. This alone does not constitute a logical argument in favor of the Helios city, and it certainly does not provide support or proof of the main argument.
Most conspicuously, the argument does not addresses the reasons or factors that should be considered when seeking new business opporunities or new location, the relationship between unemployment and opening of new business, and that between manufacturing jobs and choosing new location or business.

First, the argument assumes that the lower unemployement rate is the prime factor in choosing new location for a new business. However, the low unemployment may work against the company's profitabilty and thereby provide an obstacle in opening business in that location. In regions where unemployment is high, companies can exploit the cheap labor but this is not possible in the former case. Nevertheless, the argment does not specify how lower is the unemployment rate. If the nation wide unemployement is 25% and unemployement for Helios is 24%, then its not going to help the business, even if unemployment is good for corporations.

Second, the arguemnt never addresses the type of corporations that will start operating in Helios. But, later it states that Helios has provided manufacturing job more than its share. But the argument is suggesting corporations in general and not manufacturing corporations. Again, the share of Helios in respect of what? share may be calculated based on size of the city or that of population. Either way, it might not be a good idea to open business in Helios as there might be more competition for opening business in that area that result in increased cost of occupying place. In additions, tax structure might be higher in this type of area.

Third, Helios is providing incentives for specific categories of corporations and other types of corporations are not referred. If other types of corporations are discouraged by not providing facilities provided to innovative corporations then opening business in Helios is not a good idea. Additionally, the argument does not address how the govt. would react when Helios will be heavily incorporated.

Because, the argument leaves out several key issues, it is not sound or persuasive. If it included the items discussed above the argument would have been more thorough and convincing.
Intern
Joined: 09 Sep 2018
Posts: 1
Re: AWA - Review Request - Corporations should look to the city of Helios  [#permalink]

### Show Tags

03 Nov 2018, 21:09
The argument claims that corporations should look to the city of Helios when seeking new business opportunities or a new location since even during recession the unemployment rate was lower than the regional average. It has always provided more than its share of the regions manufacturing jobs. Additionally, it mentions that Helios is attempting to expand its economic base by attracting companies that focus on research and development. Stated in this way the argument fails to mention several key factors, on the basis of which it could be evaluated. Therefore, the argument is rather weak, unconvincing and has flaws.

First, the argument readily assumes because even during the recession the unemployment rate was lower than the regional average, corporations should look to the city of Helios for business opportunities or a new location. This statement is a stretch and not substantiated in any way. The argument compares the unemployment rate with the regional average. However, it is possible that it is much higher than the national average and there are many other cities in the nation that have a much lower average rate of unemployment. In that case corporations will look to locate their business or seek opportunities in cities other than Helios. The author fails to clarify if the city average is indeed lower than the national average.

Second, the argument claims that Helios is the industrial center of the region and historically has provided plenty of jobs to the manufacturing sector. It thus suggests this is more of a reason for the corporations to seek for business opportunities in Helios. This is again a very weak and unsupported claim as the argument does not demonstrate any correlation between manufacturing jobs and other business opportunities. It is possible that Helios provides plenty of manufacturing jobs, however, the author fails to mention the type of manufacturing jobs available in the city. Helios might be known for only one particular manufacturing industry but author makes a generalization with all types of industry. For example, the city of Aligarh in India is known as an industrial hub in its region. However, it only manufactures hardware items such as Locks and would be able to find the necessary workforce for such products. An industry that manufactures automobiles will resist to locate to Aligarh and rather locate to city of Jamnagar which is known for automobile industry.

Finally, the argument states that it is looking to attract companies that focus on research and development of innovative technologies. From this statement again it is not clear how the city would provide employment to the corporations. Research and development requires the workforce to have a particular type of skill set and education. However, the argument does not mention if the people do possess such skills.

In conclusion, the argument is flawed for therefore unconvincing. It could be strengthened if the author presented the argument with unemployment rate data of the nation and where it ranks overall. The type of manufacturing jobs available and the skills possesses by the workforce in the city. In order to assess the merits of a certain situation, it is essential to have full knowledge of all contributing factors.

Re: AWA - Review Request - Corporations should look to the city of Helios &nbs [#permalink] 03 Nov 2018, 21:09
Display posts from previous: Sort by