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The economist makes a chain of conditional assertions:

A free trade agreement will benefit Country A's automobile industry if the industry remains competitive globally.
The industry will remain competitive globally if it continues to innovate.
The industry will continue to innovate if it receives sufficient investment.
We need to determine which prediction logically follows from these assertions.


Let's analyze each option in the context of the given chain of assertions:

(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.
According to the chain: Sufficient investment → Innovation → Competitiveness. This statement logically follows from the given assertions.

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
The chain indicates: Innovation → Competitiveness → Benefit from the free trade agreement. This statement logically follows from the given assertions.

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
This statement introduces a new condition (global recession) not addressed by the assertions, so it cannot be logically derived from them.

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
The assertions do not address the duration or guarantee of sufficient investment; they only condition the outcomes based on the presence of investment.

(E) Country A's economy will become the most dominant in the automobile sector globally.
The assertions do not provide information to conclude that Country A's economy will become the most dominant in the automobile sector; they only discuss competitiveness and benefit from the free trade agreement.

Therefore, the statements that logically follow from the given assertions are:

(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.

and

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

Since we need to select the single best option, and both (A) and (B) logically follow, let's select (A) because it directly ties the condition of receiving sufficient investment to competitiveness, which is a foundational aspect of the economist's chain of reasoning.

Thus, the correct answer is: (A)
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let's take reverse if continuos investment then innovation continues, if continuos innovation then competition continues, cont. if continuos competition then there is global benefit company can leverage

hence option A is correct- If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.
Opt B- it talk only about innovation not other factors so fail
opt C- out of scope( not recession mentioned)
opt d- irrelevant (don't contribute to conclusion or logical reasoning of question)
opt e- irrelevant
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­Answer A
Logic: investment->innovation->competitivness->benefit of free trade for country A

A: Yes, if there is sufficient investment, all following factors are met and this will lead to global competitivness
B: If it innovates but has no investment, than it's over
C: Even if there is a Global recession the sufficient investment could be met. THe word global recession is out of scope.
D: The sentence is aan affirmation which doesn't fit with the argument that depends on conditions.
E:Out of scope
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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 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.
(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.


­
 


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­
­flow of argument 
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 that it will continue to innovate as long as it receives sufficient investment.
free trade agreement>>competitive globally>>continues to innovate>>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 receives sufficient investment, it will remain competitive globally.
it is FTA which will benefit to be competitive

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


(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
no mention that investment is to be made globally or deman is global 

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
irrelevant
(E) Country A's economy will become the most dominant in the automobile sector globally.
cannot be assured

OPTION B is correct


 
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IMO - B

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?

We have to check for the flow of information while solving this question.

Free trade <- competitive globally <- innovate <- sufficient investment

(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally. // Eliminate because we don't know about even if they receive sufficient investments that they will remain competitive globally
(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. // Eliminate- too far fetched
(D) The automobile industry in Country A will receive sufficient investment indefinitely. // Eliminate- too far fetched
(E) Country A's economy will become the most dominant in the automobile sector globally. // Eliminate- too far fetched
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From these assertions, we can create the following chain of conditions:

Sufficient investment → Continued innovation → Global competitiveness → Benefits from free trade agreement
Now let's evaluate each option:

(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.

From Assertion 3, we know that sufficient investment leads to continued innovation, and from Assertion 2, we know that continued innovation leads to global competitiveness. Therefore, this statement logically follows from the given assertions.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.

From Assertion 2, we know that continued innovation leads to global competitiveness, and from Assertion 1, we know that global competitiveness leads to benefits from the free trade agreement. Therefore, this statement logically follows from the given assertions.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.

There is no information provided in the assertions about the impact of a global recession on innovation. Therefore, this statement cannot be logically derived from the given assertions.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.

There is no information provided in the assertions about the indefinite nature of investment. Therefore, this statement cannot be logically derived from the given assertions.
(E) Country A's economy will become the most dominant in the automobile sector globally.

There is no information provided in the assertions about Country A's economy becoming the most dominant in the automobile sector globally. Therefore, this statement cannot be logically derived from the given assertions.
Both (A) and (B) logically follow from the given assertions. However, the question asks for the prediction that can be logically derived from the given assertions. Since the statements are equally valid, let's select the one that closely follows the chain of conditions provided:

Ans B
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Quote:
(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.
I believe this answer does the job pretty well. In order to innovate and remain competitively global, it needs sufficient investment. So if it receives the required investment, it will remain competitive globally. This is what i derived from the reasoning. Hence, the answer is A.

We wills till check all the other answers for better understanding and confirmation. Before selecting an answer, its important to eliminate all the others.

Quote:
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
For the Automobile industry in A to innovate, it needs sufficient investment to do so. So ultimately, to benefit from free trade agreement, it will require funds. Eliminate.

Quote:
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
It does makes sense that in a global recession, the automobile industry in Country A will probably not receive sufficient investments, but this cannot be derived from the reasoning. Eliminate.

Quote:
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
We know that Country A's automobile industry remains competitive globally as long as it receives sufficient investments. Option D cannot be a further prediction that is derived from the reasoning, it is not mentioned or assumed in any way. Eliminate.

Quote:
(E) Country A's economy will become the most dominant in the automobile sector globally.
The passage doesnt talk about this. We have absolutely no idea if Country A's economy will be the most dominant in the automobile sector. It is out of scope. Eliminate.
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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 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.
(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.


­
 


This question was provided by GMAT Club
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­
The text yields some conditional relationships:
- A free trade agreement will benefit Country A's automobile industry if the industry remains competitive globally.
- The industry will remain competitive globally if it continues to innovate.
- The industry will continue to innovate if it receives sufficient investment.

I chose B since it goes from top down, ensure the flow of the conditional relationships said above that Country A will enjoy the benefit of the free trade agreement since it can remain its global competitiveness, and it can because it will continue to innovate. 
Answer A is only describing a condition in the argument but does not yield any causal relationship. Other answers are outside of context and irrelevant.  

­
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The answer is option B.
Firstly, options C, D and E clearly cannot be derived.
Then, a little confusion may arise between option A or option B. But according to me, if country A continues to innovate, it may benefit from the agreement. But even if a country receives sufficient investment, it might not be able to compete globally, even if something new is produced...cuz the competetion 'globally' also consists of another countries whose conditions can't be predicted
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(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.
The idea is that it will continue to innovate as long as it receives sufficient investment. receving investments in a punctual way is not sufficient, False

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
If the automobile industry in Country A continues to innovate then it will be competitive, and if it is competitive then
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.
False, nothing guarenties this implication. It could be that even if experiencing a recession the auto industry still continue to innovate

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
False, this cannot be logically drawn from the infos given, receving investments indefinitely is not stated not could be drawn

(E) Country A's economy will become the most dominant in the automobile sector globally.
Certainly we cannot draw that logicaly from the infos given. comparing country A's economy globally is incoherent with infos given.

Correct answer is B
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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 receives sufficient investment, it will remain competitive globally. => CORRECT because free trade agreement will benefit the industry when it continues to receive sufficient investment => it continues to innovate => it remains competitive globally
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement. => The other way around
(C) If there is a global recession, the automobile industry in Country A will cease to innovate. => No such info provided in the text
(D) The automobile industry in Country A will receive sufficient investment indefinitely. => No info provided in the text that the investment is indefinite.
(E) Country A's economy will become the most dominant in the automobile sector globally. => No such info provided in the text
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­(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally: it also has to be innovative to remain compettetive globally so there is  a flaw 
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement: Innovate -> competitive ->will benefit from the free trade agreement- logical flow 
(C) If there is a global recession, the automobile industry in Country A will cease to innovate: cannot be logically derived 
(D) The automobile industry in Country A will receive sufficient investment indefinitely: cannot be logically derived 
(E) Country A's economy will become the most dominant in the automobile sector globally: too far fetched  

Ans B
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­The stimulus tell us that:

Benefit from agreement --> Competitive globally
Competitive globally --> Innovate
Innovate --> Suff Investment

A --> trap answer, could be tempting to choose, but this one is not a prediction
B --> it is the prediction, if it has suff investment it will achieve every other condition and thus benefit from the agreement
C --> can't infer this
D --> does not say in stimulus
E --> does not say in stimulus

Answer is B
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For me it's A and B which are very confusing.
but. I choose option A because
Sufficient Invesment -> Innovation
Innovation -> Competitiveness
in summary SI + I + C
but B's also looking correct idk Good Question tho.
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Investment leads to innovation, innovation keep industry globally competitive. Logically, investment makes industry competitive, hence A can be the right prediction

Let's look at other options as well

B - free trade and innovation benefit the industry, but no clear relationship between innovation and free trade

C - new information

D - the paragraph has a suggestive tone while this option makes a statement

E - there are many factors to predict if economy can be a global leader, paragraph doesn't talk about it's positioning

Posted from my mobile device
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Answer B

I am not sure about that one because A and B can be derived logically from the argument. I went with B because it is more related to the initial argument from the economist, which I believe is what the question is about.

(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.

This can be derived logically and it goes back full circle to the initial argument. However, I did not pick A because I think there is a better answer.

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

The initial argument from the economist is about free trade. We can logically derive that free trade will benefit the automobile industry in Country A if it continues to innovate as innovation is what allows them to be competitive globally.

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

While we can assume that a global recession will affect the investment in the automible industry, therefore the innovation as well, it can also not be the case. If Country A's auto industry is becoming competitive globally, then they may keep investing in it despite the recession. I feel like this argument is a bit too far-fetched.

(D) The automobile industry in Country A will receive sufficient investment indefinitely.

There is nothing indicating towards this argument.

(E) Country A's economy will become the most dominant in the automobile sector globally.

There is nothing indicating towards this argument.
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­Given that, 
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.

Asked logicla conculsion ?

1. If the automobile industry in Country A receives sufficient investment, it will remain competitive globally.
     I belive statement 1 is logical conculsion , its resolves cause and effect relationship. ( Free trade will benfit -->  industry remains competitive --> innovate ---> investment ) 
     So if sufficient investement is recieved, it will be competative globally. Statemnet 1 is correct


2.  Statement 2: i think its revers relationship
3. Statement 3: it dosen't address inovation
4. Statement 4: This statement doesn't mention about sufficient investment
5. Statement 5: out of scope
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