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Exporters in Country X are facing lower revenues due to a shortage of

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Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 26 Apr 2019, 04:07
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Exporters in Country X are facing lower revenues due to a shortage of the large metal shipping containers in which they send their goods by sea to other countries. Fewer containers arrive in Country X due to reductions in imports. This has meant lost orders, costly delays, and a scramble for alternatives, such as air freight, all of which are costlier. Moreover, the revenues of exporters in Country X will probably continue to decline in the near future. This is because other countries are likely to find it increasingly unprofitable to export their goods to Country X, and because __________.

Which of the following would most logically complete the passage?

A. production of shipping containers in Country X is growing rapidly as a response to the shortage
B. shipping companies are willing to move containers from country to country only when the containers are full
C. the cost of shipping alternatives such as air freight is likely to stabilize in the near future
D. consumers in Country X are purchasing more products than ever before
E. the worldwide demand for goods made in Country X has only recently begun to rise after a long decline


CR49551.01
OG2020 NEW QUESTION

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Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 27 Apr 2019, 01:58
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1
Bunuel wrote:
Exporters in Country X are facing lower revenues due to a shortage of the large metal shipping containers in which they send their goods by sea to other countries. Fewer containers arrive in Country X due to reductions in imports. This has meant lost orders, costly delays, and a scramble for alternatives, such as air freight, all of which are costlier. Moreover, the revenues of exporters in Country X will probably continue to decline in the near future. This is because other countries are likely to find it increasingly unprofitable to export their goods to Country X, and because __________.

Which of the following would most logically complete the passage?

A. production of shipping containers in Country X is growing rapidly as a response to the shortage
B. shipping companies are willing to move containers from country to country only when the containers are full
C. the cost of shipping alternatives such as air freight is likely to stabilize in the near future
D. consumers in Country X are purchasing more products than ever before
E. the worldwide demand for goods made in Country X has only recently begun to rise after a long decline


CR49551.01
OG2020 NEW QUESTION

Simplifying the passage gives 'there is a shortage of containers in the country and fewer containers arrive in the country, which causes problems and loss of revenue. Revenue loss (of exporters) will continue because shipping to X is unprofitable and ___.' So we need an additional reason that the revenue will continue to drop. As there are many potential reasons, instead of trying to infer one on our own we'll go through the options. This is an Alternative approach

A. this would have an opposite effect as it creates more business
B. if other countries do not ship containers to X, then shipping companies do not arrive at X and so cannot take containers from it. This works, let's check the others.
C. if the air freight stabilizes it would have the opposite effect by providing an alternative to containers
D. this could indicate that there is less of a need to export and therefore exporters revenues are falling, so is an option. As (B) directly continues the statement before it, and as (D) requires us to assume that the increased consumption comes at the expense of products for export, it is weaker.
E. if demand is increasing, why would revenues fall?

(B) is our strongest choice.
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Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 30 Apr 2019, 17:16
DavidTutorexamPAL chetan2u generis VeritasKarishma

Am I correct in below PoE?

Quote:
Exporters in Country X are facing lower revenues due to a shortage of the large metal shipping containers in which they send their goods by sea to other countries. Fewer containers arrive in Country X due to reductions in imports. This has meant lost orders, costly delays, and a scramble for alternatives, such as air freight, all of which are costlier. Moreover, the revenues of exporters in Country X will probably continue to decline in the near future. This is because other countries are likely to find it increasingly unprofitable to export their goods to Country X, and because __________.


Exporters of X are facing issues of lower revenues and SHALL CONTINUE to
face this problem since all alternatives to address the issue are costlier.

Quote:
Which of the following would most logically complete the passage?

We need a reason that will say that this decline in revenue will continue
in future because:
1. Countries that ship containers to X are not able to EXPORT more
ie REVENUE of X will remain lower in future
and
2...

Quote:
D. consumers in Country X are purchasing more products than ever before

Correct cycle is: Revenue-> Sales (Internal) -> Export remaining containers
We need to address Step 1 (i.e. loss of revenue by suggesting loss of revenue) and hence this option is incorrect
since it addresses step 2.
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Re: Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 01 May 2019, 01:46
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adkikani wrote:
DavidTutorexamPAL chetan2u generis VeritasKarishma

Am I correct in below PoE?

Quote:
Exporters in Country X are facing lower revenues due to a shortage of the large metal shipping containers in which they send their goods by sea to other countries. Fewer containers arrive in Country X due to reductions in imports. This has meant lost orders, costly delays, and a scramble for alternatives, such as air freight, all of which are costlier. Moreover, the revenues of exporters in Country X will probably continue to decline in the near future. This is because other countries are likely to find it increasingly unprofitable to export their goods to Country X, and because __________.


Exporters of X are facing issues of lower revenues and SHALL CONTINUE to
face this problem since all alternatives to address the issue are costlier.

Quote:
Which of the following would most logically complete the passage?

We need a reason that will say that this decline in revenue will continue
in future because:
1. Countries that ship containers to X are not able to EXPORT more
ie REVENUE of X will remain lower in future
and
2...

Quote:
D. consumers in Country X are purchasing more products than ever before

Correct cycle is: Revenue-> Sales (Internal) -> Export remaining containers
We need to address Step 1 (i.e. loss of revenue by suggesting loss of revenue) and hence this option is incorrect
since it addresses step 2.


Hey adkikani,

As I see it, the POE for (D) is a bit more towards:

The last sentence of the passage can be broken down to:
The revenues of *exporters of X* will continue to decline because:
1. other countries will not export to X
2. __

The first 'reason' given is not a reason at all: without making all sorts of assumptions about how other countries' exports to X affect the revenues of exporters in X, we cannot fill in the logic. Put differently, why would 'other countries don't ship X stuff' prevent 'companies in X can't ship stuff'?
Even if the model you suggest above works, it is not based on anything in the passage (as far as I can see). In general, adding our own assumptions and models to the given data is very dangerous (but very tempting!) and should be avoided whenever possible.

This is one reason to go for (B), as it directly fills in the missing logic between the 'first reason' and the given claim. ( (B) requires making assumptions too, but these are much smaller. e.g. the chain of logic 'less companies want to export to X' causes 'less full shipping containers' is not actually stated but is almost immediate and is therefore a less dangerous assumption to make).

Additionally, when we analyze (D), we have the same 'missing information' problem:
What is the link between 'consumers are purchasing more' to 'exporters are shipping less'? We can of course invent a model, such as that an increase in local sales means there is less left over to export, but this requires assumptions such as 'items exported are also sold internally' or 'only leftovers are exported' or somesuch which are entirely non-trivial.

So (D) is overall a weaker answer than (B): (D) leaves the link between 'other countries will not export to X' and the conclusion hanging, and it requires we make additional (non-trivial) assumptions.

Makes sense?
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Re: Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 03 May 2019, 21:27
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DavidTutorexamPAL wrote:
Bunuel wrote:
Exporters in Country X are facing lower revenues due to a shortage of the large metal shipping containers in which they send their goods by sea to other countries. Fewer containers arrive in Country X due to reductions in imports. This has meant lost orders, costly delays, and a scramble for alternatives, such as air freight, all of which are costlier. Moreover, the revenues of exporters in Country X will probably continue to decline in the near future. This is because other countries are likely to find it increasingly unprofitable to export their goods to Country X, and because __________.

Which of the following would most logically complete the passage?

A. production of shipping containers in Country X is growing rapidly as a response to the shortage
B. shipping companies are willing to move containers from country to country only when the containers are full
C. the cost of shipping alternatives such as air freight is likely to stabilize in the near future
D. consumers in Country X are purchasing more products than ever before
E. the worldwide demand for goods made in Country X has only recently begun to rise after a long decline


CR49551.01
OG2020 NEW QUESTION

Simplifying the passage gives 'there is a shortage of containers in the country and fewer containers arrive in the country, which causes problems and loss of revenue. Revenue loss (of exporters) will continue because shipping to X is unprofitable and ___.' So we need an additional reason that the revenue will continue to drop. As there are many potential reasons, instead of trying to infer one on our own we'll go through the options. This is an Alternative approach

A. this would have an opposite effect as it creates more business
B. if other countries do not ship containers to X, then shipping companies do not arrive at X and so cannot take containers from it. This works, let's check the others.
C. if the air freight stabilizes it would have the opposite effect by providing an alternative to containers
D. this could indicate that there is less of a need to export and therefore exporters revenues are falling, so is an option. As (B) directly continues the statement before it, and as (D) requires us to assume that the increased consumption comes at the expense of products for export, it is weaker.
E. if demand is increasing, why would revenues fall?

(B) is our strongest choice.


I passed B because B says "only when containers are full", and nowhere in the passage tells whether the containers are full. I am stucked here. pls help me with it. Thanks!
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Re: Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 04 May 2019, 10:48
apple0073603 wrote:
I passed B because B says "only when containers are full", and nowhere in the passage tells whether the containers are full. I am stucked here. pls help me with it. Thanks!


Hey apple0073603,

You are right that this isn't an extremely 'clean' GMAT question. In other words, the correct answer is a bit problematic, mainly for the reason that you state.
However, of the available answers it is strongest and so is the correct choice.
See above for a discussion of why (B) is better than (D). (All other options are much easier to eliminate)
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Re: Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 29 May 2019, 03:06
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I couldn't come up with a reason why would B strengthen the argument until I read the passage slowly once again: " <...> This has meant lost orders, costly delays, and a scramble for alternatives, such as air freight, all of which are costlier. <...>". This small portion provides a subtle little fact that B capitalizes on. If containers can't leave until they're full and if you can't fill the container quickly, the container won't move for an extended time. Thus the turnover of the containers drop and so do the exporter's revenues.

Hope this helps
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Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 01 Aug 2019, 23:35
GMATNinja I am not able to understand how B completes the passage logically. Please help.

Shipping companies must be moving containers only when full in the already existing shortage situation as well. How does this fact help support the conclusion that revenues will decline further in future?
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Re: Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 02 Aug 2019, 11:40
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neo23 wrote:
GMATNinja I am not able to understand how B completes the passage logically. Please help.

Shipping companies must be moving containers only when full in the already existing shortage situation as well. How does this fact help support the conclusion that revenues will decline further in future?


It is not a strengthening question. It's a complete the passage type of question. If you look at the answers all answer how the country will gain revenue, except for B. The passage states, less shipping containers are coming to Country X and thus there are costly delays. The only answer that most directly addresses the shipping delay is containers waiting to set sail till they are full.This would exacerbate the lower revenue situation, because less countries would be willing to wait on full containers, to send goods to Country X.
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Re: Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 02 Aug 2019, 11:55
point 1: there is scarcity of containers in the country and also less containers get into the country,
point 2: this causes issues and revenue declines.
Point 3: the decline in revenues will endure as shipping to country is not garnering any profit
What we require is another reason that would help us understand how revenue will continue to drop.

A. NO… would actually negate what we are looking for
B. POSSIBLE ANSWER… shipping companies won’t come to country X if other countries do not ship containers to X.
C. NO. again this would actually negate
D. NO. an assumption is required to be made
E. NO. revenues won’t fall if demand is growing

ANSWER: B
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Re: Exporters in Country X are facing lower revenues due to a shortage of  [#permalink]

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New post 10 Aug 2019, 09:38
khan0210 wrote:
neo23 wrote:
GMATNinja I am not able to understand how B completes the passage logically. Please help.

Shipping companies must be moving containers only when full in the already existing shortage situation as well. How does this fact help support the conclusion that revenues will decline further in future?


It is not a strengthening question. It's a complete the passage type of question. If you look at the answers all answer how the country will gain revenue, except for B. The passage states, less shipping containers are coming to Country X and thus there are costly delays. The only answer that most directly addresses the shipping delay is containers waiting to set sail till they are full.This would exacerbate the lower revenue situation, because less countries would be willing to wait on full containers, to send goods to Country X.

Great analysis, khan0210! You're right -- using POE, none of the other answer choices explain why revenues of exporters in Country X will "probably continue to decline."

The question asks which answer choice would "most logically complete the passage." So, we are not searching for an air-tight solution that absolutely WILL cause the revenue of Country X exporters to decline. It is enough to show that (B) completes the passage more logically than the other answer choices.

I hope that helps!
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Re: Exporters in Country X are facing lower revenues due to a shortage of   [#permalink] 10 Aug 2019, 09:38
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