Last visit was: 06 Sep 2026, 23:49 It is currently 06 Sep 2026, 23:49
Close
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

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
siddhantvarma
Joined: 12 May 2024
Last visit: 12 Jan 2026
Posts: 526
Own Kudos:
902
 [7]
Given Kudos: 197
GMAT Focus 1: 655 Q87 V85 DI76
GMAT Focus 1: 655 Q87 V85 DI76
Posts: 526
Kudos: 902
 [7]
Kudos
Add Kudos
7
Bookmarks
Bookmark this Post
User avatar
ragnarshelby
Joined: 30 Apr 2025
Last visit: 19 May 2025
Posts: 1
Own Kudos:
2
 [2]
Given Kudos: 3
Posts: 1
Kudos: 2
 [2]
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
User avatar
Clive1234
Joined: 30 Apr 2025
Last visit: 27 Apr 2026
Posts: 1
Posts: 1
Kudos: 0
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
bekhzod23
Joined: 25 Apr 2024
Last visit: 17 Apr 2026
Posts: 29
Own Kudos:
Given Kudos: 14
Posts: 29
Kudos: 14
Kudos
Add Kudos
Bookmarks
Bookmark this Post
The answer choice B is something mentioned in the passage. The amount of aid received by poorer nations for industrial projects=The level of financial aid given by rich nations (text)

is in proportion to the extent to which they develop new industrial bases that pose no threat to rich nation=nations have to find areas of industrial activities that pose no threat to the industrial global order (text)

Answer A. Passage doesn't mention the poors' industrial output. INCORRECT.

Answer C. Depend on is something very specific

D. Passage doesn't mention the results of foreign aid. Incorrect


E. Export markets are unrelated. Incorrect
User avatar
BekzodSigma
Joined: 10 May 2025
Last visit: 25 May 2025
Posts: 1
Own Kudos:
1
 [1]
Posts: 1
Kudos: 1
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
ragnarshelby
Can someone explain why the answer is B?
the passage itself says that rich countries fear the competition against poor counties. so if they would give them aid, poorer counties could surpass other nations (which supported them with financial aid) and became even richer
User avatar
dhruva09
Joined: 02 Sep 2024
Last visit: 06 Sep 2026
Posts: 100
Own Kudos:
Given Kudos: 139
Concentration: Strategy, General Management
Products:
Posts: 100
Kudos: 22
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Option B states ".......that pose no threat to rich nations."
And, the argument stated covers "The amount of aid recommended by Congress is invariably reduced and redistributed by presidential decree according to the findings of a select committee judging aid packages purely from an American business perspective."

American business perspective would only be valid in America. Why would it represent rich nations per say ?
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I am still not convinced nor get the gist of it as why the answer is B instead of E, therefore, I ask Claude for the explanation:

Why B doesn't have to be true:
B asserts a proportional relationship: the more poorer nations develop non-threatening industries, the more aid they receive. That's a specific causal/quantitative claim the passage never makes. The passage only says:

Aid is reduced and redistributed based on a business-perspective review, and
As a consequence, poor nations end up steering toward non-threatening industries.

That's a one-way consequence (limited aid → forces a shift in industry choice), not a scaling rule where developing safer industries earns proportionally more aid. It's entirely possible, for instance, that aid is just cut uniformly across the board regardless of how "safe" a recipient's industrial choices are — nothing in the passage rules that out. Since B could be false without contradicting the passage, it isn't something that must be true.

Why E does have to be true:
The passage explicitly ties the reduction in aid to two things: donor fear of competition/lost exports, and a review process that judges aid "purely from an American business perspective." Put together, that directly entails that aid has been cut back in order to protect donors' existing export markets — there's no additional unstated assumption required, unlike with B.
User avatar
guddo
Joined: 25 May 2021
Last visit: 06 Sep 2026
Posts: 1,831
Own Kudos:
14,408
 [2]
Given Kudos: 32
Posts: 1,831
Kudos: 14,408
 [2]
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
The level of financial aid given by rich nations to poorer nations in order to raise the poorer nations’ industrial capacity is directly influenced by the extent to which the donors fear competition and the threat of diminished exports. The amount of aid recommended by Congress is invariably reduced and redistributed by presidential decree according to the findings of a select committee judging aid packages purely from an American business perspective. As a consequence, many poorer nations have to find areas of industrial activities that pose no threat to the industrial global order.

If the above statements are true, which one of the following must also be true?

The passage says aid is not given only according to the needs of poorer nations. It is adjusted according to whether the poorer nations’ industrial development threatens the business interests of richer nations. The key inference is that poorer nations are more likely to receive aid for industrial projects that do not threaten richer nations.

(A) The most needy countries are those with the smallest industrial output.

This is not supported. The passage discusses aid decisions and donor interests, not which countries are most needy.

(B) The amount of aid received by poorer nations for industrial projects is in proportion to the extent to which they develop new industrial bases that pose no threat to rich nations.

This is correct. The passage says aid is reduced and redistributed based on American business interests, and poorer nations must find industrial activities that do not threaten the existing industrial order. So aid depends on how nonthreatening their industrial development is to rich nations.

(C) Poorer nations depend on foreign aid to advance their industrial economies.

This is too strong. The passage says aid affects what industrial activities many poorer nations pursue, but it does not say they depend entirely on foreign aid.

(D) The wealth of richer nations has expanded thanks to a policy of withholding foreign aid.

This is not supported. The passage says aid is controlled to protect donor interests, but it does not say this has increased the wealth of richer nations.

(E) The amount of foreign aid given to poorer nations by richer industrialized nations has been reduced to safeguard existing export markets.

This is close but too narrow. The passage mentions fear of diminished exports, but it also mentions broader fear of competition and the industrial global order. (B) captures the broader relationship more accurately.

Answer: (B)
User avatar
egmat
User avatar
e-GMAT Representative
Joined: 02 Nov 2011
Last visit: 06 Sep 2026
Posts: 6,291
Own Kudos:
Given Kudos: 716
GMAT Date: 08-19-2020
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 6,291
Kudos: 33,901
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi grantmyh,

I see exactly where this is splitting for you. You're treating B's "in proportion to" as an extra claim the passage never made. But look again at the very first sentence you're reacting to:

"The level of financial aid ... is directly influenced by the extent to which the donors fear competition and the threat of diminished exports."

That phrase is a proportional relationship. "Directly influenced by the extent to which" means: the more the fear, the less the aid - and the less the threat, the more the aid. So when B says aid is "in proportion to the extent to which they develop new industrial bases that pose no threat," it isn't adding anything - it's just flipping the same scale around: less threat - more aid. B is a restatement, not an overreach.

Now E - why it fails the must-be-true test.

E says aid "has been reduced to safeguard existing export markets." That pins a specific purpose onto the reduction. But the passage says the reduction happens "by presidential decree according to the findings of a select committee judging aid packages purely from an American business perspective." Fear of competition is only one input to that business judgment, and "safeguard existing export markets" is narrower and more specific than anything stated. A must-be-true answer can't require us to fill in a motive - E does, so it's out.

Quick way to feel the difference:

"Your grade is directly influenced by the extent to which you study."

- Must be true: your grade is in proportion to how much you study. Yes - that's B's move.
- Must be true: you studied specifically to raise your GPA for a scholarship? No - that adds a purpose. That's E's move.

Same concept every time: "extent to which" gives you proportionality for free, but a specific motive you have to invent is never a must-be-true.

Answer: B

grantmyh
I am still not convinced nor get the gist of it as why the answer is B instead of E, therefore, I ask Claude for the explanation:

Why B doesn't have to be true:
B asserts a proportional relationship: the more poorer nations develop non-threatening industries, the more aid they receive. That's a specific causal/quantitative claim the passage never makes. The passage only says:

Aid is reduced and redistributed based on a business-perspective review, and
As a consequence, poor nations end up steering toward non-threatening industries.

That's a one-way consequence (limited aid → forces a shift in industry choice), not a scaling rule where developing safer industries earns proportionally more aid. It's entirely possible, for instance, that aid is just cut uniformly across the board regardless of how "safe" a recipient's industrial choices are — nothing in the passage rules that out. Since B could be false without contradicting the passage, it isn't something that must be true.

Why E does have to be true:
The passage explicitly ties the reduction in aid to two things: donor fear of competition/lost exports, and a review process that judges aid "purely from an American business perspective." Put together, that directly entails that aid has been cut back in order to protect donors' existing export markets — there's no additional unstated assumption required, unlike with B.
Moderators:
GMAT Club Verbal Expert
7399 posts
Verbal Forum Moderator
705 posts