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Exports of United States wood pulp will rise consid- erably

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Senior Manager
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Exports of United States wood pulp will rise consid- erably [#permalink]

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New post 07 Apr 2004, 07:23
00:00
A
B
C
D
E

Difficulty:

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Question Stats:

100% (01:21) correct 0% (00:00) wrong based on 1 sessions

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Exports of United States wood pulp will rise consid-
erably during this year. The reason for the rise is
that the falling value of the dollar will make it
cheaper for paper manufacturers in Japan and West-
ern Europe to buy American wood pulp than to get
it from any other source.

Which of the following is an assumption made in
drawing the conclusion above?
(A) Factory output of paper products in Japan and
Western Europe will increase sharply during
this year.
(B) The quality of the wood pulp produced in the
United States would be adequate for the
purposes of Japanese and Western European
paper manufacturers.
(C) Paper manufacturers in Japan and Western
Europe would prefer to use wood pulp
produced in the United States if cost were
not a factor.
(D) Demand for paper products made in Japan and
Western Europe will not increase sharply
during this year.
(E) Production of wood pulp by United States
companies will not increase sharply during
this year.

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SVP
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New post 07 Apr 2004, 09:42
B it is for me.

C is very tempting. But if you negate C then Japan and europian countries would not have imported any wood pulp at all. The fact that they did import some wood pulp means they did prefer to import for whatever reasons.

Negate C as follows

Paper manufacturers in Japan and Western
Europe would not prefer to use wood pulp
produced in the United States if cost were
not a factor.

Meaning they will never use woodpulp from US. But the argument said otherwise in one of the premises.

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New post 07 Apr 2004, 10:01
Agree with B
C is tempting indeed but if you negate it as:

"Paper manufacturers in Japan and Western
Europe would prefer to use wood pulp
produced in the United States if cost were a factor"

then the argument stands so C is not an assumption
_________________

Best Regards,

Paul

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Director
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New post 07 Apr 2004, 10:12
Agree with B

Many assumption are needed to make the conclusion work.

Few are listed below.

1. Transportation cost does not offset the difference in the price between
Janpan and US.

2. There are no tariff on US imports in Japan.

3. Quality is comparable.

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New post 07 Apr 2004, 10:37
B & C are contenders, agree.

C is the answer here, imo

B is tempting. However, the author is assuming that Japan and Europe will buy American pulp b/c the price is suitable. In other words, if we dont assume that price is a factor, then no matter how cheap the $ is, they wont our pulp, and thus exports wont increase.

Costs were not a factor-means that there is probably no 'real' difference in price of buyng US pulp, or pulp of country X or Y or Z
_________________

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New post 07 Apr 2004, 16:11
I choose B as well... I was really tempted to choose C.

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New post 10 Apr 2004, 20:20
OA is B, but confused as to why the heck issue of quality is preferred over cost $$ the real issue?

agree that the argrument falls apart if B is negated, but not so in the case of C.


rgds,
batli

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  [#permalink] 10 Apr 2004, 20:20
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