GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 19 Oct 2018, 04:26

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Politician: It has been widely publicized that Tyrantech could have cu

Author Message
TAGS:

### Hide Tags

Senior SC Moderator
Joined: 14 Nov 2016
Posts: 1314
Location: Malaysia
Politician: It has been widely publicized that Tyrantech could have cu  [#permalink]

### Show Tags

09 Apr 2017, 02:58
4
00:00

Difficulty:

15% (low)

Question Stats:

77% (01:35) correct 23% (01:46) wrong based on 331 sessions

### HideShow timer Statistics

Politician: It has been widely publicized that Tyrantech could have cut its manufacturing costs by nearly 50% had it gone through with its plans to close its local factory and outsource that manufacturing to Venezuela. However, such a move would have cost our region thousands of jobs, so I met with the CEO and pleaded with her to do the right thing for her country and her hometown. Clearly, given today’s announcement that Tyrantech will keep the factory open, she has responded favorably to my call to patriotism.

Which of the following, if true, most undermines the politician’s argument?

A. Tyrantech’s CEO must gain approval from the Board of Directors before making any decisions regarding the opening or closing of factories.
B. The raw materials used for Tyrantech’s products are not native to Venezuela or any of its neighboring countries.
C. Tyrantech’s CEO has dual citizenship in her home country and in Venezuela.
D. The costs associated with shipping and import taxes from Venezuela were greater than the manufacturing savings would have been.
E. Venezuela is one of the poorer-performing sales markets for the products that Tyrantech produces.

_________________

"Be challenged at EVERY MOMENT."

“Strength doesn’t come from what you can do. It comes from overcoming the things you once thought you couldn’t.”

"Each stage of the journey is crucial to attaining new heights of knowledge."

Manager
Status: active
Joined: 25 Jan 2016
Posts: 141
Location: India
Concentration: Finance, Entrepreneurship
GPA: 4
WE: Web Development (Computer Software)
Re: Politician: It has been widely publicized that Tyrantech could have cu  [#permalink]

### Show Tags

09 Apr 2017, 06:49
Politician: It has been widely publicized that Tyrantech could have cut its manufacturing costs by nearly 50% had it gone through with its plans to close its local factory and outsource that manufacturing to Venezuela. However, such a move would have cost our region thousands of jobs, so I met with the CEO and pleaded with her to do the right thing for her country and her hometown. Clearly, given today’s announcement that Tyrantech will keep the factory open, she has responded favorably to my call to patriotism.

Which of the following, if true, most undermines the politician’s argument?

A. Tyrantech’s CEO must gain approval from the Board of Directors before making any decisions regarding the opening or closing of factories.
B. The raw materials used for Tyrantech’s products are not native to Venezuela or any of its neighboring countries.
C. Tyrantech’s CEO has dual citizenship in her home country and in Venezuela.
D. The costs associated with shipping and import taxes from Venezuela were greater than the manufacturing savings would have been.
E. Venezuela is one of the poorer-performing sales markets for the products that Tyrantech produces.

it is because of the higher cost to import the manufacturing goods rather than any patriotic feeling to the country.
Intern
Joined: 06 Oct 2015
Posts: 8
Re: Politician: It has been widely publicized that Tyrantech could have cu  [#permalink]

### Show Tags

10 Apr 2017, 05:04
The conclusion here is pretty straight forward: Politician thinks that company is kept open due to his request and they responded to favor of his request and patriotism for the country.

So find out a reason which says there is another reason for making such decision. Reason can be that they didnt find it vaible to transport or export from other place.

D says the same.
Senior Manager
Joined: 26 Dec 2015
Posts: 262
Location: United States (CA)
Concentration: Finance, Strategy
WE: Investment Banking (Venture Capital)
Re: Politician: It has been widely publicized that Tyrantech could have cu  [#permalink]

### Show Tags

26 Apr 2017, 19:40
i agree w/ everyone above but is this q correctly categorized as a 600-700 level q?
Intern
Joined: 26 Dec 2016
Posts: 29
Re: Politician: It has been widely publicized that Tyrantech could have cu  [#permalink]

### Show Tags

15 Jan 2018, 14:29
I narrowed it down to B and E and ultimately picked E which ended up being right. My reasoning was that the answer talked about costs including manufacturing. But, I want to know why I had a hard time completely eliminating B. Raw materials are needed for manufacturing so if they're not available in Venezuela, then it makes sense that the company didn't move.
Manager
Joined: 20 Feb 2017
Posts: 88
Location: United States
Re: Politician: It has been widely publicized that Tyrantech could have cu  [#permalink]

### Show Tags

15 Jan 2018, 15:02
rnz wrote:
I narrowed it down to B and E and ultimately picked E which ended up being right. My reasoning was that the answer talked about costs including manufacturing. But, I want to know why I had a hard time completely eliminating B. Raw materials are needed for manufacturing so if they're not available in Venezuela, then it makes sense that the company didn't move.

Politician: It has been widely publicized that Tyrantech could have cut its manufacturing costs by nearly 50% had it gone through with its plans to close its local factory and outsource that manufacturing to Venezuela. However, such a move would have cost our region thousands of jobs, so I met with the CEO and pleaded with her to do the right thing for her country and her hometown. Clearly, given today’s announcement that Tyrantech will keep the factory open, she has responded favorably to my call to patriotism.

Even though raw material is not native to Venezuela or any native country, we can't conclude that producing products in Venezuela will not be cheaper. If we were given that raw material import is prohibited, this could have been a possible answer.
_________________

*****************************************************************
Kudos are always welcome.

Math Expert
Joined: 02 Sep 2009
Posts: 50001
Re: Politician: It has been widely publicized that Tyrantech could have cu  [#permalink]

### Show Tags

25 May 2018, 03:42
hazelnut wrote:
Politician: It has been widely publicized that Tyrantech could have cut its manufacturing costs by nearly 50% had it gone through with its plans to close its local factory and outsource that manufacturing to Venezuela. However, such a move would have cost our region thousands of jobs, so I met with the CEO and pleaded with her to do the right thing for her country and her hometown. Clearly, given today’s announcement that Tyrantech will keep the factory open, she has responded favorably to my call to patriotism.

Which of the following, if true, most undermines the politician’s argument?

A. Tyrantech’s CEO must gain approval from the Board of Directors before making any decisions regarding the opening or closing of factories.
B. The raw materials used for Tyrantech’s products are not native to Venezuela or any of its neighboring countries.
C. Tyrantech’s CEO has dual citizenship in her home country and in Venezuela.
D. The costs associated with shipping and import taxes from Venezuela were greater than the manufacturing savings would have been.
E. Venezuela is one of the poorer-performing sales markets for the products that Tyrantech produces.

VERITAS PREP OFFICIAL SOLUTION:

The flaw inherent in the given argument is one of correlation/causation: just because the politician called the CEO does not make that call the cause of the outcome. Here you're looking for an alternative cause, and likely one that has to do with the only other cold, hard fact: that the company could have saved quite a bit on manufacturing costs.

Reflect on the addition of the word "manufacturing" to limit the type of costs being cut by the factory move. If the stimulus were about "overall" costs you'd have less to work with, but since it limits the savings to one type of cost, you should try to find a different type of cost that would rise. And choice D, the correct answer, provides that: shipping and import taxes are the costs that will rise, and to the point where they outweigh the savings. Therefore D is correct.
_________________
Manager
Joined: 11 Apr 2018
Posts: 120
Location: India
GPA: 4
WE: Information Technology (Computer Software)
Re: Politician: It has been widely publicized that Tyrantech could have cu  [#permalink]

### Show Tags

15 Jun 2018, 22:26
A. Tyrantech’s CEO must gain approval from the Board of Directors before making any decisions regarding the opening or closing of factories. - No effect on the argument if negated
B. The raw materials used for Tyrantech’s products are not native to Venezuela or any of its neighboring countries. - This option indicates that there might be some extra charges involved but does not affect the option is negated.
C. Tyrantech’s CEO has dual citizenship in her home country and in Venezuela. - Out of focus.
D. The costs associated with shipping and import taxes from Venezuela were greater than the manufacturing savings would have been. - This option weakens the argument
E. Venezuela is one of the poorer-performing sales markets for the products that Tyrantech produces. - Out of focus.
Re: Politician: It has been widely publicized that Tyrantech could have cu &nbs [#permalink] 15 Jun 2018, 22:26
Display posts from previous: Sort by