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Manager
Joined: 03 Jul 2006
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10 Aug 2006, 19:33
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Canadians now increasingly engage in “out-shopping,” which is shopping across the national border, where prices are lower. Prices are lower outside of Canada in large part because the goods-and-services tax that pays for Canadian social services is not applied.
Which one of the following is best supported on the basis of the information above?
(A) If the upward trend in out-shopping continues at a significant level and the amounts paid by the government for Canadian social services are maintained, the Canadian goods-and-services tax will be assessed at a higher rate.
(B) If Canada imposes a substantial tariff on the goods bought across the border, a reciprocal tariff on cross-border shopping in the other direction will be imposed, thereby harming Canadian businesses.
(C) The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.
(D) The same brands of goods are available to Canadian shoppers across the border as are available in Canada.
(E) Out-shopping purchases are subject to Canadian taxes when the purchaser crosses the border to bring them into Canada.

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Senior Manager
Joined: 31 May 2006
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Location: Phoenix AZ

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10 Aug 2006, 21:04
[quote="rkatl"]Canadians now increasingly engage in â€œout-shopping,â€

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SVP
Joined: 30 Mar 2006
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10 Aug 2006, 21:10
Will go with D.

Clearly the goods available in Canada are also available across the border. Hence the comparison between the prices.

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VP
Joined: 29 Dec 2005
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10 Aug 2006, 21:14
go with A.

D has nothing to do with Social service. we need a choice that includes something about social service. C also does but not in a manner that is supported by the passage..

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VP
Joined: 14 May 2006
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10 Aug 2006, 21:46
I agree with Professor and A for this one... D doesn't support the argument in any way and doesn't relate to Social Services. You must support both sentences, one of which deals with "out-shopping" and another with tax and Social Services...

A ties both together and I am 100% sure here.

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CEO
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Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008

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10 Aug 2006, 22:59
Should be A.
_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

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Manager
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10 Aug 2006, 23:22
[quote]Canadians now increasingly engage in â€œout-shopping,â€

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11 Aug 2006, 03:53
OA: A

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Current Student
Joined: 29 Jan 2005
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11 Aug 2006, 06:47
I originally chose (C) but after rereading, now understand why A is correct. "Will" seemed a little strong in A, while C was more conservatively stated. But C makes more of an assumpion than a prediction.

Good one!

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11 Aug 2006, 06:47
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