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# When the manufacturers in a given country are slower to

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Manager
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When the manufacturers in a given country are slower to [#permalink]

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15 Mar 2007, 20:38
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When the manufacturers in a given country are slower to adopt new technologies than their foreign competitors are, their production costs will fall more slowly than their foreign competitorsâ€™ costs will. But if manufacturersâ€™ production costs fall less rapidly than their foreign competitorsâ€™ costs do, those manufacturers will be unable to lower their prices as rapidly as their foreign competitors can; and when a countryâ€™s manufacturers cannot lower their-prices as rapidly as their foreign competitors can, that country gets squeezed out of the global market.
If the statements above are true, which one of the following must also be true on the basis of them?

(A) If the manufacturers in one country raise their prices, it is because they have squeezed their foreign competitors out of the global market.

(B) If manufacturers in one country have been squeezed out of the global market, this shows that their foreign competitors have adopted new technologies more rapidly than they have.

(C) If a countryâ€™s foreign competitors can lower their production costs more rapidly than the countryâ€™s own manufacturers can, then their foreign competitors must have adopted new manufacturing techniques.

(D) If a countryâ€™s manufacturers adopt new technologies at the same rate as their foreign competitors, neither group will be able to squeeze the other out of the global market.

(E) If a countryâ€™s manufacturers can lower their prices as rapidly as their foreign competitors can, this shows that they adopt new technology at least as fast as their foreign competitors do.

OA is E
If you have any questions
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Re: CR - new technologies [#permalink]

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15 Mar 2007, 21:28
Good one. At first I got B, which is wrong . E is the final answer.
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Re: CR - new technologies [#permalink]

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16 Mar 2007, 00:11
GMAThopeful wrote:
When the manufacturers in a given country are slower to adopt new technologies than their foreign competitors are, their production costs will fall more slowly than their foreign competitorsâ€™ costs will. But if manufacturersâ€™ production costs fall less rapidly than their foreign competitorsâ€™ costs do, those manufacturers will be unable to lower their prices as rapidly as their foreign competitors can; and when a countryâ€™s manufacturers cannot lower their-prices as rapidly as their foreign competitors can, that country gets squeezed out of the global market.
If the statements above are true, which one of the following must also be true on the basis of them?

(A) If the manufacturers in one country raise their prices, it is because they have squeezed their foreign competitors out of the global market.

----- OUT OF SCOPE

(B) If manufacturers in one country have been squeezed out of the global market, this shows that their foreign competitors have adopted new technologies more rapidly than they have.

---- NOT NECESSARY

(C) If a countryâ€™s foreign competitors can lower their production costs more rapidly than the countryâ€™s own manufacturers can, then their foreign competitors must have adopted new manufacturing techniques.

--- NOT NECESSARY

(D) If a countryâ€™s manufacturers adopt new technologies at the same rate as their foreign competitors, neither group will be able to squeeze the other out of the global market.

--- SEEMS TO BE CORRECT WHICH CAN BE DIRECTLY INFERED FROM THE PASSAGE

(E) If a countryâ€™s manufacturers can lower their prices as rapidly as their foreign competitors can, this shows that they adopt new technology at least as fast as their foreign competitors do.

--- THE PRICES REDUCTION CAN BE DONE IN MANY WAYS... NOT NECESSARY THAT THEY SHOULD ADOPT THE LATEST TECHNOLOGY.

OA is E

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16 Mar 2007, 05:46
This is a tricky one.

Mostly because of the language...

I want to pick D.

The problem with both D and E.

E. If prices drop at a similar rate this means that they are adopting technology at a similar rate...we are making the assumption that there is no other way or reason to lower prices...Maybe it is a price war, and the margins are contracting

D. I like the answer, but again this is assuming that there is no other element besides technology to squeeze a competitor.

I understand why the OA is E. Mostly because the passage is about the relationship between technology and cost. Not about technology and the global marketplace...but the logic is still flawed
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16 Mar 2007, 05:55
D and E are both not very convincing. I choose D. But am still not convinced why the OA is E.

Can anyone shed any light on this please?
Director
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16 Mar 2007, 23:09
The argument says that
A:manufacturers in a given country are slower to adopt new technologies than their foreign competitors are
B: their production costs will fall more slowly than their foreign competitorsâ€™ costs will.
and
C:those manufacturers will be unable to lower their prices as rapidly as their foreign competitors can

In all A->B->C i.e A->C
this means ~C must imply ~A
~A means atleast as fast as foreign competitors
This is what is said by E.

A leads to the final statement
X:that country gets squeezed out of the global market.
This means ~A may or may not lead to ~X
Thus what is stated in D is wrong.

Its a tricky one for sure...
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Re: When the manufacturers in a given country are slower to [#permalink]

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03 Dec 2011, 09:55
Quote:
(E) If a country’s manufacturers can lower their prices as rapidly as their foreign competitors, this shows that they adopt new technology at least as fast as their foreign competitors do.

How come that it shows that they adopt new technology as fast as their competitors? What if they're lowering the prices because it's the only way to survive?

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05 Dec 2011, 07:43
vineetgupta wrote:
The argument says that
A:manufacturers in a given country are slower to adopt new technologies than their foreign competitors are
B: their production costs will fall more slowly than their foreign competitorsâ€™ costs will.
and
C:those manufacturers will be unable to lower their prices as rapidly as their foreign competitors can

In all A->B->C i.e A->C
this means ~C must imply ~A
~A means atleast as fast as foreign competitors
This is what is said by E.

A leads to the final statement
X:that country gets squeezed out of the global market.
This means ~A may or may not lead to ~X
Thus what is stated in D is wrong.

Its a tricky one for sure...

My first choice is D, although the OA is E. I was not convinced, but I realize that we have to give the right choice based on the fact of argument, not the world outside. In the logical flow as vineetgupta reason, I am really convinced. Thanks.
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Re: When the manufacturers in a given country are slower to [#permalink]

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05 Dec 2011, 20:58
+1 for E, by applying Conditional Reasoning.

Crick
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Re: When the manufacturers in a given country are slower to [#permalink]

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05 Dec 2011, 23:15
D is out, since the argument doesn't include any reference to what happens when the two countries are equal. It is just talking about what happens if they are not equal.

+ 1 for E
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Re: When the manufacturers in a given country are slower to [#permalink]

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01 Mar 2013, 07:18
Hi Guys

This is how you solve it logically.

T = Rate of adoption of new technology
C = Rate of cost reduction
P = rate of price reduction
S = Manufacturer gets to stay in market

T*= T_Manufacturer<T_Competitor
-T*= T_Manufacturer≥T_Competitor
C*= C_Manufacturer<C_Competitor
-C*= C_Manufacturer≥C_Competitor
P*= P_Manufacturer<P_Competitor
-P*= P_Manufacturer≥P_Competitor

T* → C* : Premise 1
C* → P* : Premise 2
P* → S : Premise 3

A. A is unsupported by the premises
B. Shows the following conclusion S→ T*, However, law of syllogism suggests T*→S, therefore B is wrong.

C. Shows the following conclusion C*→ T*∪-T*, however, this conclusion is unsupported by the given premises.

D. Shows the following conclusion -T*→ -S, unfortunately this is not supported by the given premises,
However, law of syllogism suggests T*→S and by modus tollens We have -S→-T* , this logical statement is right.

E. Shows the following conclusion -P*→ -T^*
Law of syllogism suggests T*→P* and modus tollens gives -P*→-T*
Therefore E is right.

Re: When the manufacturers in a given country are slower to   [#permalink] 01 Mar 2013, 07:18
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