The easier that the government of Zanga makes it to start a wholly own

Question

The easier that the government of Zanga makes it to start a wholly owned subsidiary in Zanga, the greater the likelihood that companies that have a sales and operations establishment in Zanga will set up R&D facilities in Zanga, thereby employing more people. For example, if foreign ownership of patents that are developed by citizens of Zanga who are employed by foreign multinationals is allowed, the unemployment rate will come down.

If the information in the passage is true, then what else must be true from the statements below?

A) Some companies that previously filed for patents will now get the full right to execute those patents worldwide.
B) More and more students in Zanga will pursue degrees in Science and Engineering if the restriction on wholly owned subsidiaries is removed.
C) If Zanga relaxes its regulations against foreign ownership of patents, more companies will expand their employee base in Zanga.
D) If more companies open wholly owned subsidiaries in Zanga, then some companies that do not have sales and operations today may set up shop in Zanga.
E) If the government of Zanga makes it easier to start a wholly owned subsidiary, then companies that do not have R&D operations in Zanga will start one.

relaxes its regulations does not necessarily mean giving permission to start a wholly owned subsidiary, does it?

VeritasKarishma   sayantanc2k   nightblade354

GmatPrime · Answer

Option C is correct. 
C. If Zanga relaxes its regulations against foreign ownership of patents, more companies will expand their employee base in Zanga.
From the stimulus, 
 For example, if foreign ownership of patents that are developed by citizens of Zanga who are employed by foreign multinationals is allowed, the unemployment rate will come down.

If we consider this  fact  to be true, which we must as per the question, then  option C is essentially paraphrasing this fact . Hence, Correct.

A. We know nothing about  'worldwide'  execution.
B.  Well, may be they won't . It doesn't have to be true. May be they will pursue arts or philosophy because of their varied interests or better opportunities elsewhere.
D. We don't know if new companies will open up shops in Zanga. No guarantees.  Could be true but doesn't have to be. 
E.  Again, may be they won't . It takes money to open up R&D operations, we don't know if companies will be willing to invest in Zanga.

BoundMan · Answer

GmatMinion

The paragraph mentions -wholly owned subsidiary in Zanga i.e. 100% Then there is possibility of R&D department.
What if Zanga relaxes its regulations against foreign ownership of patent( only for foreign ownership upto 60%). In that case we do not know whether there is a possibility of R&D department department being opened by foreign subsidiary.
 VeritasKarishma

GmatPrime · Answer

Okay. 
So what's your question?

The part of the argument you are referring to is not airtight. It also includes the word 'likelihood'.
But that's not from where the answer is being derived. It's from the second part of the argument.

Hope it helps.

KarishmaB · Answer

Second statement of argument: 
For example, if foreign ownership of patents that are developed by citizens of Zanga who are employed by foreign multinationals is allowed, the unemployment rate will come down.

Option (C) is a rewording of this: 
C) If Zanga relaxes its regulations against foreign ownership of patents, more multinationals will expand their employee base in Zanga.

aggvipul · Answer

This is an  Inference Question .
Lookout for an option that has to be 100% true with the information given in the passage.  Pls note: No assumptions or alternative theories are allowed in Inference questions

Ayushpandiya · Answer

Option C is saying the same thing as given in the passage so can it be the right answer to the question.

VerbalBot · Answer

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The easier that the government of Zanga makes it to start a wholly own

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