GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 19 Jun 2018, 22:43

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

2 KUDOS received
Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2016
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Zambia is a closed economy in which the best and the brightest work [#permalink]

Show Tags

New post 09 Mar 2018, 22:36
2
2
00:00
A
B
C
D
E

Difficulty:

  85% (hard)

Question Stats:

49% (01:41) correct 51% (01:38) wrong based on 190 sessions

HideShow timer Statistics

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.

_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

Director
Director
avatar
P
Joined: 14 Nov 2014
Posts: 667
Location: India
Schools: Rotman '20 (S)
GMAT 1: 700 Q50 V34
GPA: 3.76
Re: Zambia is a closed economy in which the best and the brightest work [#permalink]

Show Tags

New post 10 Mar 2018, 02:01
Will go with A...
Foreign competition Will not increase the innovation in domestic company ...negate this ..it will break the argument..

Posted from my mobile device
Intern
Intern
avatar
B
Joined: 29 Aug 2017
Posts: 27
GMAT ToolKit User
Re: Zambia is a closed economy in which the best and the brightest work [#permalink]

Show Tags

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

However, the OA is D. Can you please explain?
4 KUDOS received
Manager
Manager
User avatar
G
Joined: 14 Oct 2017
Posts: 234
CAT Tests
Re: Zambia is a closed economy in which the best and the brightest work [#permalink]

Show Tags

New post 11 Mar 2018, 11:28
4
1
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:
_________________

My goal: 700 GMAT score

If I could help you with my answer, please think about giving me Kudos :)

Intern
Intern
avatar
Joined: 24 Jun 2013
Posts: 13
Schools: HBS '17
GMAT 1: 710 Q49 V37
GMAT 2: 700 Q49 V35
Re: Zambia is a closed economy in which the best and the brightest work [#permalink]

Show Tags

New post 11 Mar 2018, 12:17
Answer D.
Conclusion -
Increase in competition will lead to decrease in innovation.

A implies more competition means more innovation.

Thus D seems right.

Sent from my Redmi Note 4 using GMAT Club Forum mobile app
Re: Zambia is a closed economy in which the best and the brightest work   [#permalink] 11 Mar 2018, 12:17
Display posts from previous: Sort by

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.