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Sub 505 (Easy)|   Business|   Long Passage|                  
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Question 4


ramyasree0299
GMATNinja, Could you help with Question 4?

Quote:


The passage warns of which of the following dangers?

(A) Companies in the United States may receive no protection from imports unless they actively seek protection from import competition.

(B) Companies that seek legal protection from import competition may incur legal costs that far exceed any possible gain.

(C) Companies that are United States-owned but operate internationally may not be eligible for protection from import competition under the laws of the countries in which their plants operate.

(D) Companies that are not United States-owned may seek legal protection from import competition under United States import relief laws.

(E) Companies in the United States that import raw materials may have to pay duties on those materials.


Both C and D seem to be threats, How can we eliminate C?
Both might "seem to be threats," but we're looking for the one that is explicitly called out in the passage.

The import protection laws are supposed to help US companies, but in the third paragraph the author warns us that "foreign companies will use import relief laws against the very companies the laws were designed to protect."

This is exactly what (D) says:

Quote:
Companies that are not United States-owned may seek legal protection from import competition under United States import relief laws.
(D) is specifically mentioned in the passage, so (D) is the correct answer.

(C), on the other hand, is not discussed in the passage. We have no idea about the import protection laws in other countries, and how those laws may affect US companies that operate internationally.

(C) is out, and (D) is the answer to question 4.

I hope that helps!
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