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Statement of a United States copper mining company: Import quotas shou

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Statement of a United States copper mining company: Import quotas shou  [#permalink]

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New post 18 Sep 2018, 22:58
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Statement of a United States copper mining company: Import quotas should be imposed on the less expensive copper mined outside the country to maintain the price of copper in this country; otherwise, our companies will not be able to stay in business.

Response of a United States copper wire manufacturer: United States wire and cable manufacturers purchase about 70 percent of the copper mined in the United States. If the copper prices we pay are not at the international level, our sales will drop, and then the demand for United States copper will go down.

If the factual information presented by both companies is accurate, the best assessment of the logical relationship between the two arguments is that the wire manufacturer’s argument


(A) is self-serving and irrelevant to the proposal of the mining company

(B) is circular, presupposing what it seeks to prove about the proposal of the mining company

(C) shows that the proposal of the mining company would have a negative effect on the mining company’s own business

(D) fails to give a reason why the proposal of the mining company should not be put into effect to alleviate the concern of the mining company for staying in business

(E) establishes that even the mining company’s business will prosper if the mining company’s proposal is rejected

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Re: Statement of a United States copper mining company: Import quotas shou  [#permalink]

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New post 19 Sep 2018, 00:17
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As per Mining company, import quotas on less expensive copper mined outside will increase market price of copper within US but what if maximum of copper is purchased within US. The price will go up and finished good made from copper will be expensive. so in the end, companies might start buying copper at international level. So the proposal of copper mining will give negative impact.
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Statement of a United States copper mining company: Import quotas shou  [#permalink]

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New post 19 Sep 2018, 01:16
Bunuel wrote:
Statement of a United States copper mining company: Import quotas should be imposed on the less expensive copper mined outside the country to maintain the price of copper in this country; otherwise, our companies will not be able to stay in business.

Response of a United States copper wire manufacturer: United States wire and cable manufacturers purchase about 70 percent of the copper mined in the United States. If the copper prices we pay are not at the international level, our sales will drop, and then the demand for United States copper will go down.

If the factual information presented by both companies is accurate, the best assessment of the logical relationship between the two arguments is that the wire manufacturer’s argument


(A) is self-serving and irrelevant to the proposal of the mining company

(B) is circular, presupposing what it seeks to prove about the proposal of the mining company

(C) shows that the proposal of the mining company would have a negative effect on the mining company’s own business

(D) fails to give a reason why the proposal of the mining company should not be put into effect to alleviate the concern of the mining company for staying in business

(E) establishes that even the mining company’s business will prosper if the mining company’s proposal is rejected


Breaking the premise down :

P1 states that import quotas should be put on less expensive copper(mined outside the country) while the company should not have any restriction on the expensive copper (mined inside the country). Copper Mfg won't be able to stay in business if there are restrictions imposed on expensive copper.

P2 responds that Wire Mfg company buys a good chunk of Expensive copper(mined inside the country). So, if there are no quotas on on expensive copper than sales of wire will decrease and hence, the demand of copper, hurting the business of Copper Mfg.

C --> shows that the proposal of the mining company would have a negative effect on the mining company’s own business

PS: Although the logic is legitimate, I am not sure about the correctness of imposing Import Quotas on something mined inside the country.
Of course, there is no explicit mention of imposing those on copper mined inside the country but, since the Wire Mfg. talks only about the copper mined inside the United States, the imposition of Import Quotas on that seems to be flawed in its very meaning.
GMATNinja , Request your insights if I am missing something. Thank you.
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Re: Statement of a United States copper mining company: Import quotas shou  [#permalink]

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New post 19 Sep 2018, 02:03
Mining company is favoring import quota for cheap imports
and Wire manufacturer is going for cheap prices of copper they get from international market...

as wire manufacturer says that they consume 70% of copper from US origin..
they use 30% from outside and if prices of 30% of copper will increase , the demand for
70% copper will also decrease ...due to lack of overall demand

SO proposal of Mining company will have negative impact on itself...

SO C is the ans
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Re: Statement of a United States copper mining company: Import quotas shou &nbs [#permalink] 19 Sep 2018, 02:03
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