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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
Hi I chose D but i feel A is a contender as well.Because if the consumers in some industries care more for quality rather than price , the Automobile industry will get an excuse to to strengthen their demaind for Higher tariffs for Automobile exports.

A tells us that in some industries such as the ones mentioned above , the consumers go for the local products because the local products are better in quality than the imported ones . This point is , then , in support of the Automobile industry
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
mundasingh123 wrote:
Hi I chose D but i feel A is a contender as well.Because if the consumers in some industries care more for quality rather than price , the Automobile industry will get an excuse to to strengthen their demaind for Higher tariffs for Automobile exports.

A tells us that in some industries such as the ones mentioned above , the consumers go for the local products because the local products are better in quality than the imported ones . This point is , then , in support of the Automobile industry


But in choice A , automobile industry is not mentioned as one of the impacted industries and scope is also too broad ( We are talking about Country A in the question where as in the choice it takes the entire auto industry into scope).

A) In some industries -- such as childcare, scientific equipment, and higher education -- consumers care far more about the quality of the product than the price.

OA is D . I am not posting official explanation as the replies capably handle it.

Hope this helps.
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
the answer is D of course. D strengthens the position taken by the automobile industry of country A
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
Hi, I still have trouble to understand why the answer should be D, not B.

As for answer D, if the production of cars in country A relies on imported products very much, that is to say increased tariff will have a reverse effect on the cost of making card in A, and will make the industry less competitive comparing from imported cars because 'foreign automakers underpay....', I thought this option weakens country A's claim most seriously, instead of supporting it.

For B, because foreign government gives subsidies to support their automobile industry, and that is the reason why AUTOMOBIL industry differentiates other industries, and the only way to compensate the disadvantage is to increase the tariff.

I realize it does say the government would offset 'ANY EXTRA COST', but thought it is the option supporting the claim most strongly.

Please help, thank you.
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
A) In some industries -- such as childcare, scientific equipment, and higher education -- consumers care far more about the quality of the product than the price. - The passage speaks about the price rather than quality - Irrelevant - Incorrect
B) Many governments support automobile exports so strongly that they would be willing to increase subsidies to offset any additional costs that are a result of exports. - Governments support their respective automobile industry and that reduces the cost for them, which is actually mentioned in the passage - Incorrect
C) There are several industries for which the ratio of workers' wages in Country A to the workers' wages in other countries is even higher than it is in the automobile industry. - Irrelevant - No direct connection to the arguement - Incorrect
D) Because of a scarcity of mineral and metal resources, Country A's automobile industry has to import, and pay tariffs on, most mineral or metal materials used to produce automobiles. - Since raw materials are imported and tariffs has to be paid, this additional cost cuts into the profits. To gain advantage, the foreign import duty have to be increased. Fills in the gap - Correct
E) No industries in Country A other than the automobile industry, including those whose raw materials are highly taxed, have asked for an increase of the 8 tariff - Out of scope - Incorrect
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
Hello qwerty12321,

Here the Stem is pointing to the fact that: Auto Mfgrers are complaining about the cost-competitiveness to other foreign mfgrers. So, the domestic Auto industry is asking for higher tariff on these imported cars in order to boost the domestic business.

Now, the author is comparing the auto industry with other domestic industries by saying that, these other industries also face competition. But, are not asking for higher tariffs. So, it is assuming that these other industries have similar mfg processes/supplies/etc. In short, everything is comparable.

We need to negate that. So, option (D), states that the auto industry has to import Mineral/Metal which also attracts import tariff. Hence, making the raw material costly. Thus, they lose the competitive advantage. So, it weakens the author's claim.

Does that make sense?
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
The automobile industry in Country A argues that, because foreign automakers underpay workers and get nationally subsidized materials, they can offer artificially low prices. Thus, the industry argues, the current 8 percent tariff on imported products should be increased for automobiles. However, other industries in Country A remain healthy despite competition with imported products without exceptional tariffs. This fact indicates an increased automobile tariff is unnecessary.

in this argument the automobile industry in country A is compared with other industries in the country A.
if we indicate that the condition of automobile industry is different from that of the other industries in country A, then the conclusion will break apart.

D does exactly the same thing. because of the scarcity of mineral and metal resources the automobile industry incur additional costs of importing these resources.
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
Option D most likely to fit in as it tells us the reason why automobile industry of country A is looking for an increase in tariffs.

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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
Not sure that why A is incorrect. A is bringing out difference in attributes in the automobile industry vis-a-vis other industries. Note that the argument cites "other industries" and the fact that they are doing well amidst similar competitive environment to rebuke the claims of automaker.

But if we successfully highlight that qualities of those two industries are different, then, the claim of automakers is strengthened in so far as the counter comparison made in the argument is weakened.

I don't entirely agree with A being "incorrect". Sure the OA is D, but i don't think A is "incorrect" either.

Request experts to chime in here.
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
However D doesn't mention anything about the other industries so I don't feel this would be a contender

What do you think AndrewN
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
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MPRS22 wrote:
However D doesn't mention anything about the other industries so I don't feel this would be a contender

What do you think AndrewN

Hello, MPRS22. First off, what are you doing day after day practicing these 700-level third-party questions? Stick to official material. Trust me, you are not missing anything that will in and of itself net you a higher score. That said, the keyword here that we need to latch on to from the passage is tariff(s). Note that this word appears within the conclusion of the initial argument—Thus, the industry argues... tariff... should be increased for automobiles—as well as in every line thereafter—exceptional tariffs and automobile tariff. I see above that some people are caught up on (A). But we are not interested in some industries, just in the automobile industry, and we do not care, as far as the argument is concerned, about quality or price. Again, we need to focus on tariffs.

A quick scan of the answer choices reveals that only (D) and (E) center on our keyword, and (E) is easy to see off. Whether other industries have asked for an increase of the 8 [percent] tariff is beside the point. Only (D) puts the two most important pieces of the puzzle together in a compelling way, one that is consistent with the passage: automobile industry + tariffs. I would not think too much more about this one.

I will urge you one final time to work with official questions. Even if you have gone through every single one that has been released, you can learn something by going through them again. Stop focusing on the right answers and understand the wrong ones. By shifting your focus in this way, you can set yourself up for success on anything the GMAT™—not some third-party company that mimics official questions—may throw at you.

- Andrew
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
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Re: The automobile industry in Country A argues that, because foreign auto [#permalink]
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