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Over the last several decades, the demand for Country Y’s automobiles

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Over the last several decades, the demand for Country Y’s automobiles  [#permalink]

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New post 07 Jul 2018, 08:53
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Question Stats:

53% (01:49) correct 47% (01:55) wrong based on 139 sessions

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Over the last several decades, the demand for Country Y’s automobiles increased in Country X but demand for Country X’s automobiles in Country Y has remained stagnant. Initially, this disparity was plausibly due to Y’s manufacturers having superior technology, which has yielded more fuel efficient cars with cheaper maintenance. However, now Country X’s cars are comparable—if not slightly superior—in these respects. What Country X’s manufacturers fail to acknowledge is that Country Y’s drivers drive on the left side of the road.Clearly, to help lessen this trade imbalance, Country X manufacturers should produce more cars with right-side steering wheels.

Which of the following is an assumption made by the argument?

(A) Reversing the trade imbalance requires making right-side steering wheels.

(B) If Country X makes automobiles with right-side steering wheels, most consumers from Country Y will chose to purchase a car from Country X.

(C) If consumers from Country Y drive on the left side of the road, these consumers are less inclined to buy steering wheels found on the left-side of the car.

(D) Cars from Country X will continue to improve their fuel efficiency and reduce their maintenance costs.

(E) The government of Country Y requires all its citizens to purchase cars with right-side steering wheels.

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Re: Over the last several decades, the demand for Country Y’s automobiles  [#permalink]

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New post 07 Jul 2018, 10:37
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Over the last several decades, the demand for Country Y’s automobiles increased in Country X but demand for Country X’s automobiles in Country Y has remained stagnant. Initially, this disparity was plausibly due to Y’s manufacturers having superior technology, which has yielded more fuel efficient cars with cheaper maintenance. However, now Country X’s cars are comparable—if not slightly superior—in these respects. What Country X’s manufacturers fail to acknowledge is that Country Y’s drivers drive on the left side of the road.Clearly, to help lessen this trade imbalance, Country X manufacturers should produce more cars with right-side steering wheels.

Which of the following is an assumption made by the argument?

(A) Reversing the trade imbalance requires making right-side steering wheels.
This is already stated although not in this extreme manner..

(B) If Country X makes automobiles with right-side steering wheels, most consumers from Country Y will chose to purchase a car from Country X.
Not necessary. we are not looking for MOSt but to help lessen the trade balance

(C) If consumers from Country Y drive on the left side of the road, these consumers are less inclined to buy steering wheels found on the left-side of the car.
YES. then only it makes sense to shift to right-side steering wheels

(D) Cars from Country X will continue to improve their fuel efficiency and reduce their maintenance costs.
Out of scope

(E) The government of Country Y requires all its citizens to purchase cars with right-side steering wheels.
Not necessary

C
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Re: Over the last several decades, the demand for Country Y’s automobiles  [#permalink]

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New post 07 Jul 2018, 19:56
Can any expert discuss in detail why choice c) to be preferred over choice b)?

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Re: Over the last several decades, the demand for Country Y’s automobiles  [#permalink]

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New post 07 Jul 2018, 21:18
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Harshgmat wrote:
Can any expert discuss in detail why choice c) to be preferred over choice b)?

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(B) If Country X makes automobiles with right-side steering wheels, most consumers from Country Y will chose to purchase a car from Country X.

This is an extreme case, we do not know for sure if this would happen because Country Y might very well be making cars with right-side steering wheels. Making right-side steering wheels for Country Y may not increase the demand for country X's cars with right-side steering wheels.

(C) If consumers from Country Y drive on the left side of the road, these consumers are less inclined to buy steering wheels found on the left-side of the car.

This option, however, is based on the preference of the drivers.
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Re: Over the last several decades, the demand for Country Y’s automobiles &nbs [#permalink] 07 Jul 2018, 21:18
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