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505-555 Level|   Complete the Passage|                        
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jabhatta2
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jabhatta2
In (B) – there is **very small assumption**, which is -- companies are doing the blue action ORGANICALLY (Whether tariffs are low or whether tariffs are high)
I think the missing piece for you, jabhatta2, is that the blue action wouldn't be subject to tariffs by definition (just look up the definition of tariffs). In other words, the phrase "unaffected by tariffs" is implied.
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The arguments says that from US to Mexico: Quantity of shipment increased (US exports to Mexico increased because of import export tax reduction) say from 100 to 200 Nos, But the same reason did not increase the sales of these imported items in Mexico, the sales remained 100 Nos. so the question is 200 parts were imported to Mexico from US & like last year 100 Nos were sold to Mexico customers but what happened with the remaining 100 Nos ? Because: Option B

(A) many of the United States companies that produced goods that year had competitors based in Mexico that had long produced the same kind of goods: Incorrect, we are talking about US products that are being shipped to Mexico and not simply produced.

(B) most of the increase in goods shipped by United States companies to Mexico was in parts shipped to the companies’ newly relocated subsidiaries for assembly and subsequent shipment back to the United States - Correct, answers about the reasoning about the pending 100 Nos

(C) marketing goods to a previously unavailable group of consumers is most successful when advertising specifically targets those consumers, but developing such advertising often takes longer than a year : Incorrect - Generic statement

(D) the amount of Mexican goods shipped to the United States remained the same as it had been before the tariff reductions: Incorrect - This is reverse talk. We want US to Mexico shipment status

(E) there was no significant change in the employment rate in either of the countries that year­ :Incorrect - Irrelevant, we want US to Mexico shipment status
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