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# In order to protect its semi-conductor industry, Taiwan has

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In order to protect its semi-conductor industry, Taiwan has [#permalink]

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15 Jan 2009, 20:23
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In order to protect its semi-conductor industry, Taiwan has imposed high tariffs on chips from American manufacturers. Nevertheless, the Taiwanese continue to buy a higher number of American chips.

Which of the following helps explain why the Taiwanese continue to buy American chips?

A) American chip sales have increase this year by 25%

B) The high tariffs have created tensions between the two nations

C) American made chips are the best in the world and required for Taiwanese computer manufacturers

D) Taiwanese labor costs are considerably lower than in America

E) The Taiwanese standard of living is far below the U.S
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Last edited by vscid on 16 Jan 2009, 06:50, edited 1 time in total.
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15 Jan 2009, 20:38
IMO C. Only C has some logic explanation why Taiwanese would continue to buy american chip despite price increase.
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15 Jan 2009, 23:53
yes C for me too. Only C gives an explanation y Taiwanese still purchase ameriacn chips.
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16 Jan 2009, 00:01
Clear C.........rest every other answer choice is out of scope
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16 Jan 2009, 01:36
vscid wrote:
In order to protect its semi-conductor industry, Taiwan has imposed high tariffs on chips from American manufacturers. Nevertheless, the Taiwanese continue to buy a higher number of American chips.

Which of the following helps explain why the Taiwanese continue to buy American chips?

A) American chip sales have increase this year by 25%
This is nice information however it has nothing to do with explaining why Taiwan continues to purchase American chips.

B) The high tariffs have created tensions between the two nations
That's real unfortunate and if anything makes the situation more puzzling. Why would Taiwan continue to buy American chips if there tensions between the 2 nations?

C) American made chips are the best in the world and required for Taiwanese computer manufacturers
Bingo! This is a valid reason.
D) Taiwanese labor costs are considerably lower than in America
This would enhance the mystery of why American chips are purchased.
E) The Taiwanese standard of living is far below the U.S

Standard of living between the 2 nations has nothing to do with the increased demand in American chips

Although the OP confused me at first with his SC title, I figured it out and my analysis is above (in red)
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16 Jan 2009, 06:51
chicagocubsrule wrote:
vscid wrote:
In order to protect its semi-conductor industry, Taiwan has imposed high tariffs on chips from American manufacturers. Nevertheless, the Taiwanese continue to buy a higher number of American chips.

Which of the following helps explain why the Taiwanese continue to buy American chips?

A) American chip sales have increase this year by 25%
This is nice information however it has nothing to do with explaining why Taiwan continues to purchase American chips.

B) The high tariffs have created tensions between the two nations
That's real unfortunate and if anything makes the situation more puzzling. Why would Taiwan continue to buy American chips if there tensions between the 2 nations?

C) American made chips are the best in the world and required for Taiwanese computer manufacturers
Bingo! This is a valid reason.
D) Taiwanese labor costs are considerably lower than in America
This would enhance the mystery of why American chips are purchased.
E) The Taiwanese standard of living is far below the U.S

Standard of living between the 2 nations has nothing to do with the increased demand in American chips

Although the OP confused me at first with his SC title, I figured it out and my analysis is above (in red)

Thanks for pointing that out.
Corrected!
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16 Jan 2009, 12:03
this is easy one....C.
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17 Jan 2009, 15:23
I guess only C has some meaning......
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18 Jan 2009, 03:55
seems only C has something to do with stimulus above...

that would be my pick
Re: CR-Taiwan   [#permalink] 18 Jan 2009, 03:55
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