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Editorial in Krenlandian Newspaper: Krenland’s steelmakers are losing

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Editorial in Krenlandian Newspaper: Krenland’s steelmakers are losing  [#permalink]

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New post Updated on: 27 Sep 2018, 20:43
10
20
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

67% (01:31) correct 33% (01:50) wrong based on 666 sessions

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Editorial in Krenlandian Newspaper:

Krenland’s steelmakers are losing domestic sales because of lower-priced imports, in many cases because foreign governments subsidize their steel industries in ways that are banned by international treaties. But whatever the cause, the cost is ultimately going to be jobs in Krenland’s steel industry. Therefore, it would protect not only steel companies but also industrial employment in Krenland if our government took measures to reduce cheap steel imports.

Which of the following, if true, most seriously weakens the editorial’s argument?


(A) Because steel from Krenland is rarely competitive in international markets, only a very small portion of Krenlandian steelmakers’ revenue comes from exports.

(B) The international treaties that some governments are violating by giving subsidies to steelmakers do not specify any penalties for such violations.

(C) For many Krenlandian manufacturers who face severe international competition in both domestic and export markets, steel constitutes a significant part of their raw material costs.

(D) Because of advances in order-taking, shipping, and inventory systems, the cost of shipping steel from foreign producers to Krenland has fallen considerably in recent years.

(E) Wages paid to workers in the steel industry in Krenland differ significantly from wages paid to workers in many of the countries that export steel to Krenland.

Originally posted by ttram on 09 Jan 2008, 18:08.
Last edited by Bunuel on 27 Sep 2018, 20:43, edited 4 times in total.
Renamed the topic and edited the question.
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Re: Editorial in Krenlandian Newspaper: Krenland’s steelmakers are losing  [#permalink]

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New post 22 May 2008, 09:53
2
C

with the current situation, only the domestic steel industry is harmed. But if restrict steel import, everybody will be harmed. Other manufacturing industries will not be competitive, and they will go bankrupt, therefore no more customers for the domestic steel makers.
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Re: Editorial in Krenlandian Newspaper: Krenland’s steelmakers are losing  [#permalink]

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New post 23 May 2008, 10:24
1
Great discussion. OA is C. Thanks

reducing cheap steel imports(cause) --- > protects steel companies & employment in Krenland. (Effect)


To weaken either find a different cause or find opposite effect.
C is saying for the same cause there is an opposite effect.

C. For many Krenlandian manufacturers who face severe international competition
in both domestic and export markets, steel constitutes a significant part of their
raw material costs. ( Now if govt reduces steel imports, these manufacturers cannot keep up with 'severe international competition'. So this will hurt them.) (opposite effect).

D.Because of advances in order-taking, shipping, and inventory systems, the cost of
shipping steel from foreign producers to Krenland has fallen considerably in
recent years.(So now foreign steel is cheaper. This means it will hurt manufacturers. If govt reduces imports , it will not hurt manufacturers. Implies,
reducing cheap steel imports --- > protects steel companies & employment in Krenland.
So D is strengthens.
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Re: Editorial in Krenlandian Newspaper: Krenland’s steelmakers are losing  [#permalink]

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New post 12 Jul 2009, 09:17
1
I go for 'C'.
To weaken we have to attack conclusion . Argument's conclusion is 'Therefore, it would protect not only steel companies but also industrial employment in Krenland if our government took measures to reduce cheap steel imports.' Imported steel is low-priced and will allow industrial employment in Krenland to remain competitive in international competition in both domestic and export markets. Thus cheap imported steel benefits industrial employment and weaken conclusion.
What is the official answer?
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Re: Editorial in Krenlandian Newspaper: Krenland’s steelmakers are losing  [#permalink]

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New post 13 Jul 2009, 07:59
3
Great explanation found from the net:


Answer : C


The author says that there are 2 reasons why the Govt should take measure to cut cheap steel imports. The 2 reasons cite that Krenland’s steelmakers are suffering because of the imports.

Now, to weaken this, the answer choice should show that there is some advantage to Krenland’s steelmakers because of the imports. This advantage is given in choice C.
Othere choices can safely be considered 'out of scope'.


Choice C says that for many Krenlandian manufacturers, steel is a significant part of their raw material costs. It means that having cheap steel imports actually helps these (many) Krenlandian manufacturers because they are getting steel (a significant part for them) at a cheaper cost. Now, if these imports are banned, then it will be a disadvantage for them - they probably might have to get steel from some other source at a higher cost.
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Re: Editorial in Krenlandian Newspaper: Krenland’s steelmakers are losing  [#permalink]

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New post 18 Oct 2016, 14:02
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Nevernevergiveup wrote:
Im having tough time in getting gist of the CR pb.

Can you explain the question argument in detail?

Editorial in Krenlandian Newspaper: Krenland’s steelmakers are losing domestic sales because of lower-priced imports, in many cases because foreign governments subsidize their steel industries in ways that are banned by international treaties. But whatever the cause, the cost is ultimately going to be jobs in Krenland’s steel industry. Therefore, it would protect not only steel companies but also industrial employment in Krenland if our government took measures to reduce cheap steel imports.

Which of the following, if true, most seriously weakens the editorial’s argument?

A. Because steel from Krenland is rarely competitive in international markets, only a very small portion of Krenlandian steelmakers’ revenue comes from exports.
B. The international treaties that some governments are violating by giving subsidies to steelmakers do not specify any penalties for such violations.
C. For many Krenlandian manufacturers who face severe international competition in both domestic and export markets, steel constitutes a significant part of their raw material costs.
D. Because of advances in order-taking, shipping, and inventory systems, the cost of shipping steel from foreign producers to Krenland has fallen considerably in recent years.
E. Wages paid to workers in the steel industry in Krenland differ significantly from wages paid to workers in many of the countries that export steel to Krenland.

Dear Nevernevergiveup,

I'm happy to respond. :-) This entire argument is more than little bit reminiscent of the situation involving Chinese steel and its impact on the US steel industry. Even when the GMAT CR uses fictional places, there's often a strong connection to currents in the real-world market.

The prompt is interesting. The first two sentences highlight clear and reasonable threats to Krenland’s steel industry. Then, the prompt argument throws in this sly wrinkle:
Therefore, it would protect not only steel companies but also industrial employment in Krenland if our government took measures to reduce cheap steel imports.
Wait a moment! Clearly, the cheap imported steel hurts the Krenland’s steel industry, because it's a direct competitor, but why would it hurt employment in other industries? Might it be that other industries are benefitting from cheap steel? The last line of the argument slipped something in that was not part of the preceding argument.

There's a color phrase in American culture that you do NOT need to know for the GMAT: to slip [someone] a Mickey. A "Mickey" or "Mickey Finn" is an old slang term for an alcohol drink that has been laced with some kind drug. Metaphorically, slipping someone a Mickey means surreptitiously throwing in some small but potent detail that actually changes the whole situation. That's precisely what this prompt argument does to us. This prompt argument slips us a Mickey!

A. Because steel from Krenland is rarely competitive in international markets, only a very small portion of Krenlandian steelmakers’ revenue comes from exports.
This argument is about domestic sales, so sales in the international market are irrelevant. This is incorrect.

B. The international treaties that some governments are violating by giving subsidies to steelmakers do not specify any penalties for such violations.
This may be unfortunate, but if the treaties themselves provide no disincentives for those foreign companies, that's all the more reason that Krenland should take measures to reduce the cheap steel imports. This could be a strengthener, so it's definitely not a weakener. This is incorrect.

C. For many Krenlandian manufacturers who face severe international competition in both domestic and export markets, steel constitutes a significant part of their raw material costs.
Aha! This picks up on that subtle wrinkle in the final sentence. What if the cheap imported steel is bad for Krenland’s steel industry but good for many of Krenland’s other industries? It could be that by eliminating the cheap imported steel, a few jobs would be saved in Krenland’s steel industry, but many more jobs would be lost in other industries! This choice suggests exactly what: many Krenlandian manufacturers who are already in a precarious position depend on the cheap imported steel, because steel is a huge supply cost for these companies. If we eliminate the cheap imported steel, so that these companies would be forced to buy the more expensive domestic steel from Krenland’s steel industry, then many of this other companies might fold in the face of steep competition. A win for Krenland’s steel industry but a loss for all the other companies! That's not a win for Krenland as a whole! This is a very promising choice.

D. Because of advances in order-taking, shipping, and inventory systems, the cost of shipping steel from foreign producers to Krenland has fallen considerably in recent years.
This simply explains why the imported steel is so cheap now. This provides no justification for the proposed action. This is incorrect.

E. Wages paid to workers in the steel industry in Krenland differ significantly from wages paid to workers in many of the countries that export steel to Krenland.
This may be true, and may in fact explain part of the difference in steel price. (Ironically, I believe this is also the case between Chinese & US steel workers!) Like (D), this explains the problem but does nothing to solve it. This is incorrect.

The only possible answer is (C).

Does this make sense?
Mike :-)
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Re: Editorial in Krenlandian Newspaper: Krenland’s steelmakers are losing  [#permalink]

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New post 27 Sep 2018, 09:11
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Re: Editorial in Krenlandian Newspaper: Krenland’s steelmakers are losing &nbs [#permalink] 27 Sep 2018, 09:11
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