Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 1811:00 AM PST
-12:00 PM PST
Join us in a live GMAT practice session and solve 30 challenging GMAT questions with other test takers in timed conditions, covering GMAT Quant, Data Sufficiency, Data Insights, Reading Comprehension, and Critical Reasoning questions.
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
09 Mar 2018, 22:36
Kudos
Bookmarks
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
55% (02:18) correct
45%
(02:19)
wrong
based on 1053
sessions
History
Date
Time
Result
Not Attempted Yet
Zambia is a closed economy in which the best and the brightest work for domestic companies and few foreign companies operate. Because of limited innovation by domestic companies, the economic growth in Zambia has been non-existent. To spur innovation, the government has proposed allowing foreign companies to operate in Zambia. While this move may increase the overall economic growth in Zambia, it will increase competition for local talent, thereby decreasing the domestic companies’ overall ability to innovate.
Which of the following is an assumption made in the argument?
A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.
B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia.
C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition.
D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with.
E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent.
Which of the following is an assumption made in the argument?
A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.
B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia.
C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition.
D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with.
E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent.
19 Sep 2018, 08:18
Kudos
Bookmarks
Skywalker18
Premises:
Zambia is a closed economy with few foreign companies.
Because of limited innovation by domestic companies, the economic growth in Zambia has been non-existent.
To spur innovation, the government has proposed allowing foreign companies to operate in Zambia.
While this move may increase the overall economic growth in Zambia, it will increase competition for local talent
Conclusion
This move will decrease the domestic companies’ overall ability to innovate.
A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.
The argument talks about "ability to innovate". There will be fewer smart people so lower ability to innovate. Whether foreign competition will spur innovation in domestic companies (and hence domestic companies may actually innovate more than before) is irrelevant. The argument does not assume anything about the level of innovation after the foreign companies come in. It only talks about "higher economic growth" and "lower ABILITY to innovate".
B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia.
Not true. The argument actually says that economic growth is expected to increase with this move.
C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition.
Not known. The argument doesn't say why innovation doesn't happen. Perhaps the domestic companies don't have the skill set, perhaps they don't have the required experience, we don't know. The argument doesn't say that the domestic companies will start innovating once the foreign companies come in. It just says that the ability to innovate will reduce.
D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with.
The argument says that the ability to innovate will reduce if foreign companies come in because they will take away some work force. It assumes that the foreign companies will not bring in any value which will significantly enhance the "ability" to innovate. Taking away some work force may reduce the ability but if some practices brought in by foreign companies significantly increase the ability, the move will not decrease the domestic companies’ overall ability to innovate.
Hence, this is something the argument assumes.
E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent.
Not an assumption. Even if they do offer below average wages, some talent will be taken away by them and the ability of domestic companies to innovate will reduce.
Answer (D)
11 Mar 2018, 11:28
Kudos
Bookmarks
Zambia is a closed economy in which the best and the brightest work for domestic companies and few foreign companies operate. Because of limited innovation by domestic companies, the economic growth in Zambia has been non-existent. To spur innovation, the government has proposed allowing foreign companies to operate in Zambia. While this move may increase the overall economic growth in Zambia, it will increase competition for local talent, thereby decreasing the domestic companies’ overall ability to innovate.
We have to find a connection between the decrease in talents available and the decrease in innovation power
Which of the following is an assumption made in the argument?
A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.This assumption tells us that innovation power was stagnant before. It doesn't explain convincingly why the innovation power should decrease. Yes, talents will go to other companies, which will decrease the power. However, the innovation power could increase too because of the increasing competition, right?
B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia. Doesn't provide insight why the innovation power in domestic companies will decrease
C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition. Similar to A
D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with. Aha! This assumptions explains the decrease in innovation power and mentions the workforce too. Decreases in innovation power occur because of talents leaving while these decreases aren't compensated by new management practices from foreign countries
E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent. Irrelevant for this question
I hope it's clear what I want to say. However, I am aware that somebody undoubtedly will explain it in a better way
We have to find a connection between the decrease in talents available and the decrease in innovation power
Which of the following is an assumption made in the argument?
A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.This assumption tells us that innovation power was stagnant before. It doesn't explain convincingly why the innovation power should decrease. Yes, talents will go to other companies, which will decrease the power. However, the innovation power could increase too because of the increasing competition, right?
B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia. Doesn't provide insight why the innovation power in domestic companies will decrease
C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition. Similar to A
D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with. Aha! This assumptions explains the decrease in innovation power and mentions the workforce too. Decreases in innovation power occur because of talents leaving while these decreases aren't compensated by new management practices from foreign countries
E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent. Irrelevant for this question
I hope it's clear what I want to say. However, I am aware that somebody undoubtedly will explain it in a better way
