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# Economic considerations color every aspect of international dealings

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Senior Manager
Joined: 21 Sep 2004
Posts: 338
Economic considerations color every aspect of international dealings  [#permalink]

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Updated on: 19 Jan 2020, 05:28
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13
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Difficulty:

55% (hard)

Question Stats:

56% (02:00) correct 44% (02:14) wrong based on 828 sessions

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Economic considerations color every aspect of international dealings, and nations are just like individuals in that the lender sets the terms of its dealings with the borrower. That is why a nation that owes money to another nation cannot be world leader.

The reasoning in the passage assumes which one of the following?

(A) A nation that does not lend to any other nation cannot be a world leader.

(B) A nation that can set the terms of its dealings with other nations is certain to be a world leader.

(C) A nation that has the terms of its dealings with another action set by that nation cannot be a world leader.

(D) A nation that is a world leader can borrow from another nation as long as that other nation does not set the terms of the dealings between the two nations.

(E) A nation that has no dealings with any other nation cannot be world leader.

Originally posted by vprabhala on 22 Mar 2005, 16:42.
Last edited by Bunuel on 19 Jan 2020, 05:28, edited 3 times in total.
Renamed the topic.
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Re: Economic considerations color every aspect of international dealings  [#permalink]

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22 Mar 2005, 19:06
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1
1) Economic considerations color every aspect of international dealing
2) Nations are just like individuals in that the lender sets the terms of its dealing with the borrower
3) That is why a nation that owes money to another nation cannot be a world leader <-- conclusion

nation owe money ---> cannot be world leader
can be world leader ---> does not owe money

Conclusion is true only if a nation is a world leader when it does not owe money to any other nation. We need an assumption along this line of reasoning.

The reasoning in the passage assumes which one of the following?

(A) A nation that does not lend to any other nation cannot be a world leader.
- Out

(B) A nation that can set the terms of its dealings with other nations is certain to be a world leader.
- No. We're told the nation can be one, but not definitely one (which the word 'certain' suggests)

(C) A nation that has the terms of its dealings with another action set by that nation cannot be a world leader.
- Yes. If we're told a nation that has the terms of its dealing set by another nation and this is sufficient to make it not be a 'world leader', then it's true that a nation that does not owe money (sets the terms) is a world leader.

(D) A nation that is a world leader can borrow from another nation as long as that other nation does not set the terms of the dealings between the two nations.
- No. Does not tells us why not oweing money makes a nation a world leader

(E) A nation that has no dealings with any other nation cannot be world leader.
- Out

I'll take C
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Re: Economic considerations color every aspect of international dealings  [#permalink]

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24 Jun 2013, 20:16
Re-posting for further discussion.

Aristotle CR.

Economic considerations colour every aspect of international dealings, and nations are just like individuals in that the lender sets the terms of its dealings with the borrower. That is why a nation that owes money to another nation cannot be world leader.
The reasoning in the passage assumes which one of the following?
(A) A nation that does not lend to any other nation cannot be a world leader.
(B) A nation that can set the terms of its dealings with other nations is certain
(C) A nation that has the terms of its dealings with another action set by that
nation cannot be a world leader.
(D) A nation that is a world leader can borrow from another nation as long as that
other nation does not set the terms of the dealings between the two nations.
(E) A nation that has no dealings with any other nation cannot be world leader.

Doubt: Why is D wrong? What exactly does C mean by another action set?
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Re: Economic considerations color every aspect of international dealings  [#permalink]

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24 Jun 2013, 23:21
3
swati007 wrote:
Doubt: Why is D wrong? What exactly does C mean by another action set?

Hi Swaiti007

This question is about "supporter assumption".

The stimulus says:
Fact: Lender sets the terms of its dealings with a nation who wants to borrow money
Conclusion: a nation that borrows money from another nation cannot be world leader

You can see the flow: Lender sets terms of borrowing to A nation who wants to borrow ==> This nation cannot be World leader.
The assumption should connect "terms of borrowing" to "world leader".
The assumption should be: Any nation who has terms of borrowing that are set by another nation ==> cannot be world leader

C says: A nation that has the terms of its dealings with another action set by that nation cannot be a world leader.
It means: X, who has the terms of X's dealing with Y set by Y, cannot be a world leader
Hence, C is correct.

D is wrong because It's simply a reverse answer. D says: X is world leader because Y does not set terms of dealing with X. But the real assumption is: X has terms of dealing that are set by Y ==> X is not world leader.

Hope it helps.
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Re: Economic considerations color every aspect of international dealings  [#permalink]

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30 Jul 2016, 12:39
A,E straight away out.

I chose B initially which Says: (B) A nation that can set the terms of its dealings with other nations is certain

But, I found the wording of the statement is really strong.This is less like an assumption but seems more like a conclusion.

(C) A nation that has the terms of its dealings with another action set by that
nation cannot be a world leader.

This perfectly fits as the answer and also matches the wording.
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Re: Economic considerations color every aspect of international dealings  [#permalink]

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30 Jul 2016, 16:40
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Actually, B and C are equally strong. B says "If X happens, then Y will certainly happen." C says "If X does NOT happen, Y will certainly NOT happen."

The easiest way to spot the difference is in looking at the end result. The argument concludes that certain countries will NOT be world leaders, so we need a choice that leads to that outcome. Knowing what will guarantee leadership does not tell us what will prevent leadership. However, we could just as well look at the first part of the conditional. We are talking about countries that CANNOT set their own terms, so the premise feeds into C, not B.

A more intuitive way to look at it is that B helps us to conclude that lending countries ARE world leaders (something the argument isn't claiming), while C addresses the actual claim made in the argument: that borrowing countries cannot be world leaders.
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Re: Economic considerations color every aspect of international dealings  [#permalink]

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14 Dec 2017, 06:02
vprabhala wrote:
Economic considerations color every aspect of international dealings, and nations are just like individuals in that the lender sets the terms of its dealings with the borrower. That is why a nation that owes money to another nation cannot be world leader.

The reasoning in the passage assumes which one of the following?

(A) A nation that does not lend to any other nation cannot be a world leader.

(B) A nation that can set the terms of its dealings with other nations is certain to be a world leader.

(C) A nation that has the terms of its dealings with another action set by that nation cannot be a world leader.

(D) A nation that is a world leader can borrow from another nation as long as that other nation does not set the terms of the dealings between the two nations.

(E) A nation that has no dealings with any other nation cannot be world leader.

"the conclusion is about nations who own the money can not be a leader, but that does not mean the other nation would be a leader." Indeed, as far as we're concerned, maybe none of them can be a world leader.

So we're concluding that a nation that owes money to another nation cannot be a world leader. But all we know from the premise about the debtor nation is that it doesn't get to set the terms of the deal -- it's the lender who gets to set the terms. So we need an assumption that says, "If you're not setting the terms of your loan, you can't be a world leader."

That's exactly what (C) says, which is why it's correct.

(A) is out because this doesn't tell us anything about the nation that owes money.

(B) also is irrelevant as we discussed; we care about the nation that borrows, not the one that lends.

(D) was tempting to me, but it's actually backwards. It's telling us that if the other nation doesn't set the terms, you can be a world leader -- but that doesn't mean you can't be a world leader if the other nation does set the terms.

(E) is incorrect because we're talking about a nation that does have dealings with other nations.
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Re: Economic considerations color every aspect of international dealings  [#permalink]

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03 May 2019, 02:51
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Re: Economic considerations color every aspect of international dealings   [#permalink] 03 May 2019, 02:51