Mark: The taxes on our business are really high here. We should move our operations to a foreign country, and in that way, increase our profits.
Alan: Governments reject the requests of foreign companies that wish to perform private development within their borders since such companies merely abuse the local resources.
Mark argues that moving to a foreign country is a better option to increase the company’s profits. While stating this, Mark assumes that costs involved in setting up a factory in a foreign country will not increase the overall costs to the company but rather result in increased profits.
Alan tries to counter Mark’s claim by pointing out that foreign governments will not allow foreign companies to operate within their boundaries to prevent abuse of local resources.
Task: Strengthening mark’s position. We need information which will support the claim that setting up factory in foreign location will result in increased profits.
Which of the following, if true, most supports Mark's position?
(A) To prevent a situation where taxes place too much of a burden on a business, every company has the right to claim tax deductions.
Irrelevant choice. In no way this choice supports Mark’s position.
(B) Transferring a company to a foreign location is an attractive option for many reasons, though two in every three companies that do so encounter complications.
We do not know for certain whether the company in discussion falls under the two out of three category or one out of three category.
(C) A recent international trend is the reforming of policies concerned with the admission of foreign business operations as such operations often nourish the economy.
This choice does lend support to Mark’s claim by mentioning that a recent trend will allow foreign companies to setup factory in the corresponding countries.
(D) Auditing companies can provide expert advice on how to limit the taxes that need to be paid by any specific business.
Irrelevant answer choice.
(E) Companies that operate in foreign countries often employ workers of their own nationality, an act that is disapproved by most governments.
In no way we get a definite answer whether this choice will help strengthening Mark’s claim.
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