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Zambia is a closed economy in which the best and the brightest work

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Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 09 Mar 2018, 21:36
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A
B
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D
E

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  95% (hard)

Question Stats:

51% (02:22) correct 49% (02:20) wrong based on 462 sessions

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Zambia is a closed economy in which the best and the brightest work for domestic companies and few foreign companies operate. Because of limited innovation by domestic companies, the economic growth in Zambia has been non-existent. To spur innovation, the government has proposed allowing foreign companies to operate in Zambia. While this move may increase the overall economic growth in Zambia, it will increase competition for local talent, thereby decreasing the domestic companies’ overall ability to innovate.

Which of the following is an assumption made in the argument?


A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.

B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia.

C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition.

D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with.

E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent.

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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 11 Mar 2018, 10:28
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Zambia is a closed economy in which the best and the brightest work for domestic companies and few foreign companies operate. Because of limited innovation by domestic companies, the economic growth in Zambia has been non-existent. To spur innovation, the government has proposed allowing foreign companies to operate in Zambia. While this move may increase the overall economic growth in Zambia, it will increase competition for local talent, thereby decreasing the domestic companies’ overall ability to innovate.
We have to find a connection between the decrease in talents available and the decrease in innovation power

Which of the following is an assumption made in the argument?
A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.This assumption tells us that innovation power was stagnant before. It doesn't explain convincingly why the innovation power should decrease. Yes, talents will go to other companies, which will decrease the power. However, the innovation power could increase too because of the increasing competition, right?
B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia. Doesn't provide insight why the innovation power in domestic companies will decrease
C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition. Similar to A
D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with. Aha! This assumptions explains the decrease in innovation power and mentions the workforce too. Decreases in innovation power occur because of talents leaving while these decreases aren't compensated by new management practices from foreign countries
E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent. Irrelevant for this question

I hope it's clear what I want to say. However, I am aware that somebody undoubtedly will explain it in a better way :grin:
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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 10 Mar 2018, 01:01
Will go with A...
Foreign competition Will not increase the innovation in domestic company ...negate this ..it will break the argument..

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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 11 Mar 2018, 10:10
I chose A over D.

However, the OA is D. Can you please explain?
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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 11 Mar 2018, 11:17
Answer D.
Conclusion -
Increase in competition will lead to decrease in innovation.

A implies more competition means more innovation.

Thus D seems right.

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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 15 Sep 2018, 05:01
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This is strange. In e-GMAT the correct answer choice is A.

The source is egmat and the answer choice is A

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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 15 Sep 2018, 06:19
I chose D but could not eliminate A confidently. Can you help out?
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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 15 Sep 2018, 13:13
Zambia is a closed economy in which the best and the brightest work for domestic companies and few foreign companies operate. Because of limited innovation by domestic companies, the economic growth in Zambia has been non-existent. To spur innovation, the government has proposed allowing foreign companies to operate in Zambia. While this move may increase the overall economic growth in Zambia, it will increase competition for local talent, thereby decreasing the domestic companies’ overall ability to innovate.

Which of the following is an assumption made in the argument?
A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.
Innovation engine is not the core reason for reaching the conclusion, it is the brightest work force.

B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia.
Nothing as such is mentioned in the argument.

C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition.
the competition is between local talent in the conclusion.

D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with.

Correct answer choice.
E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent.
while wages indirectly effect the workforce and best workers will get best wages, but wages is not discussed in the argument so out of scope.
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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 18 Sep 2018, 23:55
abhishekdadarwal2009 wrote:
.

Which of the following is an assumption made in the argument?
A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.
Innovation engine is not the core reason for reaching the conclusion, it is the brightest work force.
==>Disagree. Had the brightest work force been the reason for innovation, what has stopped/made stagnant, the innovation before (when almost all of the brightest workforce was available for domestic companies).
This surely can NOT to be the justification.


B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia.
Nothing as such is mentioned in the argument.

C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition.
the competition is between local talent in the conclusion.

D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with.

Correct answer choice.
==> Shouldn't the Management practices be out of scope at first place (premise/argument in whole doesn't mention anything of that). And why would companies share the practices with competitors?

E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent.
while wages indirectly effect the workforce and best workers will get best wages, but wages is not discussed in the argument so out of scope.


I was able to narrow down the choice to 'A' and 'D'. However, eliminated 'D' with the justification I gave above.
Experts, please help.

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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 18 Sep 2018, 23:58
Was able to narrow down answer choices to 'A' and 'D'. And then ended with eliminating 'D' as it seems out of scope.
None of the explanations here are convincing. please help.
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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 19 Sep 2018, 07:18
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Skywalker18 wrote:
Zambia is a closed economy in which the best and the brightest work for domestic companies and few foreign companies operate. Because of limited innovation by domestic companies, the economic growth in Zambia has been non-existent. To spur innovation, the government has proposed allowing foreign companies to operate in Zambia. While this move may increase the overall economic growth in Zambia, it will increase competition for local talent, thereby decreasing the domestic companies’ overall ability to innovate.

Which of the following is an assumption made in the argument?


A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.

B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia.

C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition.

D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with.

E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent.


Premises:
Zambia is a closed economy with few foreign companies.
Because of limited innovation by domestic companies, the economic growth in Zambia has been non-existent.
To spur innovation, the government has proposed allowing foreign companies to operate in Zambia.
While this move may increase the overall economic growth in Zambia, it will increase competition for local talent

Conclusion
This move will decrease the domestic companies’ overall ability to innovate.

A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.

The argument talks about "ability to innovate". There will be fewer smart people so lower ability to innovate. Whether foreign competition will spur innovation in domestic companies (and hence domestic companies may actually innovate more than before) is irrelevant. The argument does not assume anything about the level of innovation after the foreign companies come in. It only talks about "higher economic growth" and "lower ABILITY to innovate".

B. Innovation by foreign companies is not likely to improve the rate of economic growth in Zambia.

Not true. The argument actually says that economic growth is expected to increase with this move.

C. Lack of domestic innovation today is primarily caused by the complacency of domestic companies which face little competition.

Not known. The argument doesn't say why innovation doesn't happen. Perhaps the domestic companies don't have the skill set, perhaps they don't have the required experience, we don't know. The argument doesn't say that the domestic companies will start innovating once the foreign companies come in. It just says that the ability to innovate will reduce.

D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with.

The argument says that the ability to innovate will reduce if foreign companies come in because they will take away some work force. It assumes that the foreign companies will not bring in any value which will significantly enhance the "ability" to innovate. Taking away some work force may reduce the ability but if some practices brought in by foreign companies significantly increase the ability, the move will not decrease the domestic companies’ overall ability to innovate.
Hence, this is something the argument assumes.

E. Many foreign companies that start operating in Zambia do not offer below average wages to the local talent.
Not an assumption. Even if they do offer below average wages, some talent will be taken away by them and the ability of domestic companies to innovate will reduce.

Answer (D)
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Re: Zambia is a closed economy in which the best and the brightest work  [#permalink]

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New post 20 Sep 2018, 06:53
VeritasKarishma wrote:
Skywalker18 wrote:
Zambia is a closed economy in which the best and the brightest work for domestic companies and few foreign companies operate. Because of limited innovation by domestic companies, the economic growth in Zambia has been non-existent. To spur innovation, the government has proposed allowing foreign companies to operate in Zambia. While this move may increase the overall economic growth in Zambia, it will increase competition for local talent, thereby decreasing the domestic companies’ overall ability to innovate.

Which of the following is an assumption made in the argument?

Premises:
Zambia is a closed economy with few foreign companies.
Because of limited innovation by domestic companies, the economic growth in Zambia has been non-existent.
To spur innovation, the government has proposed allowing foreign companies to operate in Zambia.
While this move may increase the overall economic growth in Zambia, it will increase competition for local talent

Conclusion
This move will decrease the domestic companies’ overall ability to innovate.

A. Foreign competition will not spur the innovation engine at domestic companies, which has been stagnant because of lack of competition.
The argument talks about "ability to innovate". There will be fewer smart people so lower ability to innovate. Whether foreign competition will spur innovation in domestic companies (and hence domestic companies may actually innovate more than before) is irrelevant. The argument does not assume anything about the level of innovation after the foreign companies come in. It only talks about "higher economic growth" and "lower ABILITY to innovate".


D. Management practices brought and shared by the foreign companies in Zambia will not significantly enhance the ability of domestic companies to innovate with whatever workforce they are left with.

The argument says that the ability to innovate will reduce if foreign companies come in because they will take away some work force. It assumes that the foreign companies will not bring in any value which will significantly enhance the "ability" to innovate. Taking away some work force may reduce the ability but if some practices brought in by foreign companies significantly increase the ability, the move will not decrease the domestic companies’ overall ability to innovate.
Hence, this is something the argument assumes.


Answer (D)


Thanks for the detailed explanation VeritasKarishma.
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Re: Zambia is a closed economy in which the best and the brightest work &nbs [#permalink] 20 Sep 2018, 06:53
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