For a country to obtain the benefits of direct investment by foreign

Question

For a country to obtain the benefits of direct investment by foreign multinationals in its industries, unrestricted incentives to foreign multinationals and a high degree of support to local businesses are both necessary. While the government of Kokua is prepared to offer incentives to foreign multinationals, the population of the country would most likely demand that the national legislature place restrictions on these incentives by the next voting term.

The claims above, if true, most strongly support which of the following conclusions?

A. If Kokua offers unrestricted incentives to foreign multinationals, public discord will make it impossible to provide a high degree of support to local businesses.

B. As long as support to local businesses in Kokua is generous, direct investment by foreign multinationals is likely to succeed.

C. Incentives to foreign multinationals are sufficient to generate direct investment by those multinationals, if those incentives are unrestricted.

D. Direct investment by foreign multinationals in Kokua is likely to fail in the long term.

E. Overwhelming popular support is required for successful direct investment by foreign multinationals in Kokua.

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DeepanshuPandey · Answer

The claims above, if true, most strongly support which of the following conclusions?

A.  If Kokua offers unrestricted incentives to foreign multinationals, public discord will make it impossible to provide a high degree of support to local businesses. -  Wrong. It does not explain why the national legislature should restrict these incentives by the next voting term.

B.  As long as support to local businesses in Kokua is generous, direct investment by foreign multinationals is likely to succeed .- Wrong. It does not explain why the national legislature should restrict these incentives by the next voting term.

C.  Incentives to foreign multinationals are sufficient to generate direct investment by those multinationals, if those incentives are unrestricted -  Wrong. It does not explain why the national legislature should restrict these incentives by the next voting term.

D.  Direct investment by foreign multinationals in Kokua is likely to fail in the long term .- Correct. It explains why the national legislature should restrict these incentives by the next voting term. If direct investment by foreign multinationals is likely to fail in the long then national legislature should restrict these incentives

E.  Overwhelming popular support is required for successful direct investment by foreign multinationals in Kokua -  Wrong. It does not explain why the national legislature should restrict these incentives by the next voting term.

shaurya_gmat · Answer

D IMO,

-> To obtain benefits of direct investment by FMNC, the following two conditions need to be met -
a) unrestricted incentives to foreign multinationals
b) high degree of support to local businesses
Govt of Kokua is ready to meet condition 1 but the population of the country is most likely to ask for a change to this condition in the future.
Hence, benefits of direct investment by FMNC is likely to fail in the long term as condition 1 will not be met.

Bunuel · Answer

Official Explanation

Reading the question: we glance at the prompt but skip down and check out the question stem. The understated language "most strongly support" tips us off that we can answer this question by proving in stronger terms. We will determine which answer choice must be true, given the prompt.

Logical proof: Choice (A) need not be true - we just have grounds to know it must be true - so it's out. Choice (B) sounds false, because we know there is the problem with the unrestricted incentives. (C) is wrong: the prompt makes clear that there are two key things we need, not just one. (C) is out. (D) has some potential: it's at least pointing out that there are problems with getting the investment done. We're down to (D) and (E). One must be true, given the prompt; the other need not be true. In (E), "overwhelming" is a very strong term that decreases the quality of the answer. After all, we don't really need overwhelming popular support--only enough for the incentives to be unrestricted and for support to local businesses to be in place. So (E) is out. Meanwhile, the prompt states as a fact that if Kokua offers incentives, the people will make demands messing it up. According to the prompt, it hasn't already happened, but it's a fact that it's likely to happen. On those grounds, it must be true that failure is likely.

The correct answer is (D).

For a country to obtain the benefits of direct investment by foreign

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For a country to obtain the benefits of direct investment by foreign

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