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# Some analysts maintain that an embargo by country Litora on the export

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Some analysts maintain that an embargo by country Litora on the export  [#permalink]

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Updated on: 23 Jun 2017, 04:02
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35% (medium)

Question Stats:

73% (01:34) correct 27% (01:53) wrong based on 164 sessions

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Some analysts maintain that an embargo by country Litora on the export of a strategic metal to country Zenda, if imposed, would drive up the price of the metal in Zenda at least tenfold. They note that few other countries export the metal and that, with an embargo, Zenda might have to depend on as-yet-unexploited domestic sources of the metal.

Which of the following, if true, constitutes the most serious objection to the analysis above?

(A) Litora’s economy depends heavily on foreign currency earned by the export of the strategic metal to other countries.
(B) There are foreign-policy steps that Zenda could take to appease Litora and avoid being subjected to an embargo on the metal.
(C) Geologists believe that additional deposits of the metal could possibly be found within the territory of Litora.
(D) Only a small proportion of Zenda’s import expenditures is devoted to the import of the metal from Litora.
(E) In case of an embargo, Zenda could buy the metal indirectly from Litora on the world market at a less than one-third increase in cost.

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Originally posted by metallicafan on 24 Jul 2010, 15:49.
Last edited by abhimahna on 23 Jun 2017, 04:02, edited 1 time in total.
Edited the question
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Re: Some analysts maintain that an embargo by country Litora on the export  [#permalink]

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25 Jul 2010, 07:44
Conclusion : Embargo leads to exorbitant increase in prices of metals Z. This increase in prices causes the use of the unexploited sources of metals.

An explanation which will prevent the increase in the metal prices will make the Embargo non-entity.
E provides that explanation.

(D) Only a small proportion of Zenda’s import expenditures is devoted to the import of the metal from Litora. >>> does not explain how the domestic resource utilization will be avoided. It does not prevent the increase in price of metals. Irrelevant.
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Re: Some analysts maintain that an embargo by country Litora on the export  [#permalink]

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25 Jul 2010, 22:49
E is logcal because it explains why Zenda might not have to depend on unexploited domestic sources of the metal.

In D it is assumed that Zenda might have to depend on unexploited domestic sources of the metal and import less from Litora. D is in favour of the argument.
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Re: Some analysts maintain that an embargo by country Litora on the export  [#permalink]

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31 Aug 2010, 03:44
Some analysts maintain that an embargo by country Litora on the export of a strategic metal to country Zenda, if imposed, would drive up the price of the metal in Zenda at least tenfold. They note that few other countries export the metal and that, with an embargo, Zenda might have to depend on as-yet-unexploited domestic sources of the metal.
Which of the following, if true, constitutes the most serious objection to the analysis above?

Analysis: if (Embargo imposed by Litoria) -------> Price of metal increase (Zenda)
we need to make the analysis wrong-

Eventhough Litoria imposed embargo,which lead to increase in Price of the metal,Zenda could buy the metal with the cost less than what it was marked.

So: Ans E)
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Re: Some analysts maintain that an embargo by country Litora on the export  [#permalink]

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01 Sep 2010, 01:56
Simple if you ban is not effective what is the use of that?
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Re: Some analysts maintain that an embargo by country Litora on the export  [#permalink]

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06 Aug 2015, 17:43
Request you not to write your queries/answers/opinions in question window. It prevents ppl from analysing the question. The whole purpose of GMAT Club forum goes wasted by doing so.
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Re: Some analysts maintain that an embargo by country Litora on the export  [#permalink]

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23 Jun 2017, 03:29
there is still a possibility that Zenda really needs metal from Litora; also, the argument is about the export of metal from Litora to Zenda, not about expenditures.

A cannot be the answer because in a weaken question, an alternative plan does not play as a weakener. The weakener must focus on the argument.
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Re: Some analysts maintain that an embargo by country Litora on the export  [#permalink]

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18 Dec 2018, 00:37
Conclusion : Embargo leads to exorbitant increase in prices of metals Z. This increase in prices causes the use of the unexploited sources of metals.
An explanation which will prevent the increase in the metal prices will make the Embargo non-entity.
E provides that explanation. Hence, E is the answer.
Re: Some analysts maintain that an embargo by country Litora on the export &nbs [#permalink] 18 Dec 2018, 00:37
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