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Re: Some analysts maintain that an embargo by country Litora on the export [#permalink]
Very good question. can someone explain why c is not the answer

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Re: Some analysts maintain that an embargo by country Litora on the export [#permalink]
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Davronbek wrote:
Hello! Can someone explain why D is wrong?

Because we knot that embargo would drive up the price of the metal in Zenda at least tenfold and that few other countries export the metal, so Zenda import most of his resources from Litora. Eliminate D.
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Re: Some analysts maintain that an embargo by country Litora on the export [#permalink]
If only a small proportion is from L, why is it not D?
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Some analysts maintain that an embargo by country Litora on the export [#permalink]
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Hi! First contribution ever in the club so I hope you like it!

The passage states that if Litora imposes an embargo on the export of a strategic metal to Zenda, the price of that metal would at least tenfold (old price*10 or more). The reason for that conclusion is that few other countries export the metal and that Zenda might have to look into its unexplored domestic market to get sources of the metal.

The question then, asks for the most serious objection to the analysis (i.e, we're looking for a weakener)

A) IMO it's out of scope, as it focuses on a potential impact on Litora's economy rather than Zenda's. Eliminate it.

B) It can certainly help if Zenda could take some diplomatic steps to avoid the embargo, but for me, the outcome is not very clear (Litora could either revisit their position or politely tell Zenda to explore other options). Remember that we're looking for the MOST serious objection. Personally, I'd keep it with serious reservations and look for stronger options.

C) Again, this refers to Litora when we're trying to analyze the impact of the embargo from Zenda's POV, but it would not be an objection in any case. If Litora has even more resources of that metal, that could translate into more market power that would not benefit Zenda. Eliminate it.

D) It compares Zenda's export of this metal to its total exports, which would be relevant if the question was about the embargo's impact on Zenda's economy. It doesn't necessarilly object or undermine the possibility that the embargo will make the price of the metal to at least tenfold. Eliminate it.

E) It says that if there's an embargo, Zenda can get the resource from the world market at less than 1/3 increase in cost so clearly the price of that metal would not tenfold if there's an embargo. Therefore, choice E is the right answer. ­
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Some analysts maintain that an embargo by country Litora on the export [#permalink]
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