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# Canadians now increasingly engage in out-shopping

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Director
Joined: 15 Aug 2005
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05 Oct 2005, 17:49
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Canadians now increasingly engage in â€œout-shopping,â€
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Cheers, Rahul.

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Manager
Joined: 04 Oct 2005
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05 Oct 2005, 18:05
I go for A

If more people buy outside of canada and social service costs shall remain the same, then the government have to raise the goods-and-service tax in order to compensate for the loss of tax income.

B) the stem gives in now way information, that the canadians have reason to impose a reciprocal tariff
C) if true, it would contradict the stem.
D) irrelevant. even if only different brands of goods were available outside of canada, they still could be a lot cheaper and thus provide reason to go out-shopping.
E) If true, then canadians would have no reason to go out-shopping and the whole stem makes no sense anymore.

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GMAT Club Legend
Joined: 07 Jul 2004
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05 Oct 2005, 18:49
(A) - Best choice. The goods and services tax imposed by the Canadian government would have to be increased if expenditure flowing out of the country is increased.
(B) - can't tell based on passage
(C) - not supported for
(D) - can't tell if the brands are the same
(E) - can't tell from the passage

A is the best choice.

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Director
Joined: 21 Aug 2005
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05 Oct 2005, 22:05
A is my pick.

Increase in tax rate will follow to compensate for the lost tax income in decreased sales.

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Manager
Joined: 21 Sep 2005
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06 Oct 2005, 01:11
go A go....

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Senior Manager
Joined: 11 May 2004
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06 Oct 2005, 08:18
Go with A. We are looking for an effect of the out shopping.

A answers this because the decrease in Canadian shopping will cause a decrease in the taxes generated. So, in order to meet the expenses of the social services, the tax rate has to go up.

[quote="rahulraao"]Canadians now increasingly engage in â€œout-shopping,â€

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Senior Manager
Joined: 29 Nov 2004
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06 Oct 2005, 08:40
A imo too
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Fear Mediocrity, Respect Ignorance

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SVP
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06 Oct 2005, 13:21
I have to disagree with you guys here and choose D.

I think A is out of scope.
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hey ya......

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Intern
Joined: 18 Jun 2005
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06 Oct 2005, 13:36
I pick A because this is the only conclusion that could be reach by the passage.

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Current Student
Joined: 29 Jan 2005
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06 Oct 2005, 21:55
A may not be a perfect prediction, but it is the only logical conclusion that can be made based on the limited evidence in the passage.

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06 Oct 2005, 21:55
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# Canadians now increasingly engage in out-shopping

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