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Option B

Clearly, the only two close options are A and B

I eliminated A
coz - If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.
The relationship says --> if investment weel - then innovate -- then competitive
It will be competitive globally ONLY if there is free trade, which cannot be inferred from the logical relationship.
Which is why I eliminated it
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­chain of consequences:
automobile industry receives sufficient investment -> it continues to innovate -> it remains competitive globally -> it will benefit from the free trade agreement (if the agreement is finally signed)


(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.
CORRECT Either the agreement is finally signed or not, if it receives sufficient investment, it continues to innovate, so it will remain competitive globally.

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
INCORRECT It will be true ONLY if the agreement is finally signed.

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
INCORRECT Even if there is a global recession, automobile industry could receive sufficient investment, so it would continue to innovate.

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
INCORRECT "Receiving sufficient investment indefinitely" is not in the "chain of consequences".

(E) Country A's economy will become the most dominant in the automobile sector globally.
INCORRECT "Becoming the most dominant" is not in the "chain of consequences".


IMO A
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If the assertions above are correct, which of the following further predictions can logically be derived from them?

Sufficient globally invest in an industry --->lead to globally industry innovation
globally industry innovation ---> lead to globally competitiveness in the industry
globally competitiveness in the industry ---> lead to Country A's automobile industry benefits from free trade agreement
free agreement ----> benefits Country A's automobile industry

ANS A

(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.
CORRECT
To keep globally competitive it is necessary to innovate, and to innovate is crucial to receive sufficient investment. So we can predict that Country A can continue innovating because of the sufficient investment in the automobile industry, so they can keep globally competitive.

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
INCORRECT
Even if industry in Country A innovates if there is no globally industry innovation there will not be globally competitiveness in the industry so Country A's automobile industry will not benefits from free trade agreement.

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
INCORRECT
A global recession does not mean to stop investing in an industry. But even though the case of a global recession and all country cease invest in the automobile industry, may be the case that Country A still receiving sufficient investment to continue innovating.

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
INCORRECT
no information to infer this.

(E) Country A's economy will become the most dominant in the automobile sector globally.
INCORRECT
We can not infer this since we don't know about the situation of other countries in the automobile industry and much less about other industries in Country A compared with others.

ANS LETTER
A­
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­A free trade agreement will benefit as long as the industry remains competitive globally.
The industry will remain competitive as long as it continues to innovate.
It will continue to innovate as long as it receives sufficient investment.

Inference: If sufficient investment is provided, there can be innovation.
As long as there is innovation, the industry will remain competitive.
As long as the industry is competitive it will benefit from free trade agreement.

(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
Both the options are very close, but even with investment, its the industries choice to innovate. Investment can be used elsewhere aswell. However, if there is innovation the industry will be competitive and as a result it will benefit. This will happen for sure if the assertions are true.

The following options cant be logically predicted as nothing is mentioned regarding what happens in case of global recession, flow of investment or any signs of economy becoming most dominant:
(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.


Correct Option: B
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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) 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.

Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle

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­
Question is asking for "further prediction" that can be logically derived from statement

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
this is fact we know from argument . not a prediction.INCORRECT
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.

if A contineus to innovate (meeting other conditions as well), then can benefit from agreement.it is predicted from entire argument . CORRECT
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
Cannot predict about investment directly after recession. INCORRECT
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
Cannot be predicted.INCORRECT
(E) Country A's economy will become the most dominant in the automobile sector globally.
Cannot be predicted.INCORRECT

ANS B
 
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Inference.

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
Sufficient investment is necessary to innovate but may not be suff.

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
Correct.

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
Can't be inferred.

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
indefinitely ??? Can't be inferred.


(E) Country A's economy will become the most dominant in the automobile sector globally.
most dominant???? Can't be inferred.
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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) 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.

Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle

­
 


This question was provided by GMAT Club
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­
­1: FTA will benefit Country A' Automobile Industry
2: Industry remains competitive globally
3: industry remains Competitive
4: Industry continues to innovate
5: Industry receives sufficient funding

1 follows 2
3 follows 4
4 follows 5

Answer Choices:
A: if no 5 -> there's no 4
B: 1 follows 4 - not true. the word globally is the gap
C,D,E irrelevant
 
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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) 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.

Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle

­
 


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­

It can be inferred from the assertion provided that:
‘benefits from trade agreement’ follows only from ‘remains competitive’ follows only from ‘continues to innovate’ follows only from ‘sufficient investment’

Thus if we’re given that the industry ‘remains competitive’ it definitely ‘continues to innovate’ and definitely has ‘sufficient investment’ and definitely ‘benefits from trade agreement’. On the other hand if we’re similarly asked if industry ‘remains competitive’, the same conclusion cannot be drawn, if it’s an ‘if’ statement, it has to start with ‘sufficient investment’.

Among the given options, only (A) satisfies, thus is the correct answer.

Posted from my mobile device
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­(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.
This prediction feels logically correct but the wording of the passage differs from what this option means to say. 

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
This directly follows from the second assertion. If innovation is a condition for benefiting from the free trade agreement, then this prediction is correct and is a better option than A. 

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
This prediction goes beyond the economist's assertions.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
The economist does not make any claim about the duration or investment being given indefinitely. 
(E) Country A's economy will become the most dominant in the automobile sector globally.
This has not been predicted.  ­
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As Given:

investment->Innovation->Competitive->Benefit from FTA

Hence No Investment->> No Innovation->> Not Competitive->>No FTA Benefit

A. Correct, Based on above mentioned order.
B- Not correct logically, before innovation there is one more step which is the enabler.
C. Out of Score, recession not mentioned in the argument.
D.Out of Score
E.Out of Score
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We are given following logical implications by question stem:
Sufficient investment -> Continue to innovate -> Industry remain competitive -> Free trade benifit

We are looking for what can be inferred. Let's look at the options:

A. If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
This type of statement is called contrapositive. If we are given A -> B then if not B -> not A. Assertion is that industry will continue to innovate as long as there is sufficient investment. So if there was no investment, we can assert that innovation will not happen because if this statement was wrong, then assertions provided by question stem will not follow logic. Correct

B. If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
This statement does follow logic provided by question by it is missing a step. There is no mention of industry remaining competitive. The economist says that innovation leads to competitiveness, and competitiveness leads to free trade agreement benefit. But this answer is linking innovation directly to free trade benefit, which is not a guanteed inference. Incorrect

C. 
If there is a global recession, the automobile industry in Country A will cease to innovate.
There is no information provided for global recession. We do not know effect of recession on innovation. There is no mention that recession will lead to less investment in auto industry. Incorrect

D. The automobile industry in Country A will receive sufficient investment indefinitely.
We do not have sufficient information to say that sufficient investment will be provided indefinitely. External factors could be at play. Incorrect

E. Country A's economy will become the most dominant in the automobile sector globally.
We do not have any information about auto industry of other countries. We do not even know if Country A's auto industry is major player or not.  Incorrect­
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The logical chain goes as follows:
  • sufficient investment => continued innovation => competitive globally => benefit from FTA
As this is an inference question, we need to choose the answer option that is, roughly speaking, 'most guaranteed' by the prompt.

(A)
While it's tempting, if we only know that A leads to B, the absence of A does not necessarily lead to B.
(Example: if coffee makes Mary happy, it doesn't mean that no coffee necessarily makes her unhappy. It's a strong possibility, but not a guarantee). Eliminate.

(B)
This one is literally repeating our logic, from step 2 to step 4. Seems like it's right.

(C)
Indeed, the recession may lead to less investment - or it may not. Valid supposition, but not a guarantee. Eliminate.

(D)
This one is completely unbiased. Eliminate.

(E)
Again, fully unbiased, as there's no talk of domination. Eliminate.

Therefore, the right answer is B.­
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Quote:
­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) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
- May or may not be true. The argument only says investment is required for innovation, but doesn't mean the reverse is also true. Read more on suffiecient and necessary conditions to get a better idea of this.

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
- innovate->competetive->will benefit from trade agreement. This can be derived.

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
- The innovation is tied to investment-> innovate, may or may not be true as the investment might or might not increase/decrease.

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
- This is nowhere said in the argument. If it receives sufficient investment is what the argument is further based upon, but there's no guarantee whether it will.

(E) Country A's economy will become the most dominant in the automobile sector globally.
- Can't be derived, there is not tie to being competetive globally and being dominant.
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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) 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.

Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle

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­Benifit from free trade agreement => Competitive => innovate => sufficient investment

Correct choice: B

Innovation is required for getting benefits from free trade agreement. Also it's logically derived based on given requirements.

Incorrect choices:

A: This is directly stated.

C: If there's global recession company may reduce amount of trades but it it ceases the innovation then it will not stand.

D: We can not be sure about it.

E: There is no information about other companies to conclude to this.
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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) 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.

Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle

­
 


This question was provided by GMAT Club
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­
­
  1. Free trade agreement benefits → Competitiveness
  2. Competitiveness → Innovation
  3. Innovation → Sufficient investment

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
  • Correct. This follows directly from the assertion that innovation depends on sufficient investment.

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
  • Incorrect. Innovation alone doesn't guarantee the benefits of the free trade agreement; competitiveness is also required.

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
  • Incorrect. This introduces an external factor (global recession) not covered by the assertions.

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
  • Incorrect. This assumes perpetual investment without basis in the given assertions.

(E) Country A's economy will become the most dominant in the automobile sector globally.
  • Incorrect. This is an unsupported broad conclusion not derived from the assertions.
­
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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) 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.

Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle
­A. We only know what happens when the conditions are present. We cannot speculate what happens when sufficient investment is not present.
B. We know that as long as the industry innovates, it will remain competitive and as long as it remains competitive, it will benefit from free trade agreement.
C. If there is global recession, trade might go down but we don't know if it will have an effect on its innovation.
D. We don't know enough information to derive this.
E. We cannot derive this from given information.
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(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
This does not match the contrapositive of the first statement.

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
This combines the first two original statements (innovation leads to competitiveness, which leads to benefiting from the agreement). This is a direct logical progression from the assertions.

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
This is unrelated to the given assertions.

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
This is unrelated to the given assertions.

(E) Country A's economy will become the most dominant in the automobile sector globally.
This is unrelated to the given assertions.

IMO B
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