Hi
Bunuel,
There is a lot of chatter around either option A or B.
My two cents here, would like to know your opinion:
C, D, and E are clear rejects, so no doubts over there.
Option B says that “If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement”, IMO this should be negated, why because the passage mentions - “free trade agreement will benefit Country A's automobile industry as long as the industry remains
competitive globally; that the industry will remain
competitive as long as it continues to innovate”. Since the passage mentioned that FTA will benefit as long as the industry is competitive globally and the industry will be competitive as long as it innovates, which basically means that if there is innovation, company can be competitive (perhaps domestically), not sure about globally.
Since there was a negation in Option B and I chose Option A.
Looking forward to your comment.
Bunuel
Bunuel
An economist asserts that a free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally; that the industry will remain competitive as long as it continues to innovate; and that it will continue to innovate as long as it receives sufficient investment.
If the assertions above are correct, which of the following further predictions can logically be derived from them?
(A) A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
(E) Country A's economy will become the most dominant in the automobile sector globally.
GMAT Club Official Explanation:
Correct Answer: B. If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.(B) connects the conditions laid out: innovation leads to competitiveness, and competitiveness under a free trade agreement leads to benefits. Hence, if innovation continues, then the benefits from the free trade agreement will follow because competitiveness is maintained as a result of innovation.
(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.(A) We only know that sufficient investment guarantees innovation but we dont know if insuffient investment guarantees no innovation. It still may, but we only know that it will as long as long as it receives sufficient investment. Eliminate.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.(C) introduces an external factor (global recession) that is not covered by the economist’s assertions. There is no direct connection between a recession and innovation. Perhaps during the recession there will be less investment but maybe there will be even more - we do not know and we cannot assume anything else. This statement is insufficient by itself and irrelevant. Eliminate.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.This answer choice makes a prediction that is not based on any of the stated facts. We do not know or have any reason to believe that investments will continue in the future. Eliminate
(E) Country A's economy will become the most dominant in the automobile sector globally.This choice goes way beyond the provided facts. There are many condidtions that have to happen for this to be true and we do not have any evidence that it will indeed happen. Eliminate