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# Corporations in the United States have fired thousands of workers whil

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Joined: 01 Sep 2016
Posts: 201
GMAT 1: 690 Q49 V35
Corporations in the United States have fired thousands of workers whil [#permalink]

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Updated on: 01 May 2018, 02:19
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Question Stats:

78% (01:18) correct 22% (01:48) wrong based on 191 sessions

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Corporations in the United States have fired thousands of workers while outsourcing certain manufacturing processes to countries where labor costs are lower than they are domestically. However, unemployed people are not able to buy as many goods as employed people, so these corporations will see lower revenues in the future as a result of the outsourcing.

Which of the following, if true, most strengthens the author's argument?

A. Most workers who have lost their jobs to outsourcing have been unable to find new jobs.

B. Many corporations that have failed to outsource manufacturing processes have seen their profits decline in the last few years.

C. When a company fires an employee due to a plant closure, that company must pay unemployment benefits if the former employee cannot find work.

D. Proponents of outsourcing note that closing manufacturing plants allows the United States to focus on creating higher technology jobs.

E. The initial investment in setting up a plant in a low cost labor foreign country is generally low enough that it is outweighed by the short term savings in labor costs for many corporations

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Originally posted by bkpolymers1617 on 01 Oct 2017, 07:22.
Last edited by Bunuel on 01 May 2018, 02:19, edited 1 time in total.
Renamed the topic and edited the question.
Manager
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Affiliations: Senior Manager, CA by profession, CFA(USA) Level 2
Joined: 06 Feb 2016
Posts: 94
Location: India
Concentration: Finance, Finance
GMAT 1: 560 Q44 V21
GPA: 3.82
WE: Other (Commercial Banking)
Re: Corporations in the United States have fired thousands of workers whil [#permalink]

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02 May 2018, 19:30
Corporations in the United States have fired thousands of workers while outsourcing certain manufacturing processes to countries where labor costs are lower than they are domestically. However, unemployed people are not able to buy as many goods as employed people, so these corporations will see lower revenues in the future as a result of the outsourcing.

Which of the following, if true, most strengthens the author's argument?

CONCLUSION : Corporation will see lower revenue in future as a result of outsourcing its manufacturing operations

We need to strengthen this conclusion

A. Most workers who have lost their jobs to outsourcing have been unable to find new jobs. CORRECT as since those who had lost jobs are unable to find a new job , this has directly impacted the buying power of these people as they are unable to buy new goods because of lack of money as they are not having new job in hand and sitting unemployed. Ultimately this is leading to reduction in revenue of Corporation.

B. Many corporations that have failed to outsource manufacturing processes have seen their profits decline in the last few years. Incorrect as we are talking about those corporations who have outsourced manufacturing processes hence out of scope answer choice

C. When a company fires an employee due to a plant closure, that company must pay unemployment benefits if the former employee cannot find work. OUT OF SCOPE, we are not concerned with whether employment benefits are paid or not. The issue in hand is outsourcing of manufacturing process is leading to reduction in revenue of corporations.

D. Proponents of outsourcing note that closing manufacturing plants allows the United States to focus on creating higher technology jobs. Incorrect, WEAKENER CHOICE as creating high technology jobs would help in generating more revenue to the corporations.

E. The initial investment in setting up a plant in a low cost labor foreign country is generally low enough that it is outweighed by the short term savings in labor costs for many corporations - Again a WEAKENER ANSWER CHOICE as savings in labour costs would be more than initial investments so it would help in generating more revenue
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Re: Corporations in the United States have fired thousands of workers whil   [#permalink] 02 May 2018, 19:30
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