Last year, Energy Corp's oil sales increased suddenly in the region of lower Ossamia. The Chief Financial Officer of the company explained this increase as the result of industrialization in the developing Ossamian nation of Kokua. He predicts that, consequently, trade made possible by industrialization will grow between Kokua and its Ossamian neighbors this year, leading to further increases in Energy Corp sales in the region.
Each of the following, if true, provides some support for the CFO's prediction described above EXCEPT:
A. Although non-Ossamian countries have a military and trade presence in Ossamia, their oil sales last year in the region were not significantly above normal levels.
B. Mines accessing Kokua's rich natural resources were put into operation for the first time last year.
C. Each of the Ossamian countries currently have few restrictions in place on the business that can be done with its neighboring countries.
D. One of Energy Corp's primary competitors had a tanker accident early last year that caused environmental damage in Ossamia and damaged the company's standing in the area.
E. One of Ossamia's neighbors, a developing nation, has a growing population with a reasonable amount of disposable wealth.
The correct answer is: D. One of Energy Corp's primary competitors had a tanker accident early last year that caused environmental damage in Ossamia and damaged the company's standing in the area.
Why this is the EXCEPT:
This option does not support the CFO’s prediction about future growth due to industrialization and trade. Instead, it explains why Energy Corp may have gained market share last year—because a competitor lost credibility. That’s a past event tied to competitive advantage, not to economic or trade expansion driven by Kokua’s industrialization.
How the other options support the prediction:
• A: Suggests Energy Corp’s growth is region-specific, not due to external players—supports the idea that local industrialization is the cause.
• B: Directly ties Kokua’s resource development to industrial growth—fueling future trade.
• C: Indicates low trade barriers, making increased regional trade more likely.
• E: A neighboring country with growing demand supports the idea of expanded trade and oil sales.
so answer is D