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# Country X complains that Country Y*s high tariffs on

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Country X complains that Country Y*s high tariffs on [#permalink]

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21 Jul 2008, 05:32
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9. Country X complains that Country Y*s high tariffs on imported goods have artificially inflated the price of cars imported from Country X into Country Y, and that this is the reason that few of Country X*s cars are sold in Country Y. On the other hand, Country X's very low tariffs allow Country Y to sell many cars there at relatively low prices. Country X says that if Country Y would lower its tariffs, then Country X s cars would be able to compete in Country Y and an equitable balance of trade would be achieved.

Which of the following, if true, would most undermine the validity of Country X's explanation for the poor sales of its cars in Country Y?

A In places where the tariffs on goods from both countries are equal, Country Y's cars far outsell cars from Country X.
B Cars imported from Country Z sell poorly in Country Y.
C In countries where tariffs on imported goods are higher than in Country Y, Country X sells more cars than does Country Y.
D Other goods from Country X sell poorly in Country Y.
E Sales of Country Y*s cars are high even in countries that have higher tariffs on imported goods than does Country X.
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21 Jul 2008, 05:33
I made it C but now when I'm writting C leads the other way.

Here is the explanation : Since Country Y sale car to countries which have higher tarrifs than Y, this indicates that the reason why cars are not sold in Country Y is different ( maybe Cars are small for Country X's people) so this does not undermine the Country X's explanation that the cars are not sold in Country Y on X due to tariffs.

A is the right choice , since the reason that, Y's cars are inable to compete with X's car, is not the tarriffs(this oppose the claim of Y) so A explain Y's cars are sold more than X's where the tarriffs are equal . So we have to assume another ground(maybe x's cars are not durable ...etc)
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21 Jul 2008, 05:46
A.

The basis of the argument is that Country X's sales are low due to price caused by the tariff. A undercuts that by showing another instance where price is not the object and Country Y's cars still outsell country X's cars.

C actually supports the argument because if both Country X and Country Y import to another country, and regardless of the tariffs being higher, the tariffs should level that playing field and then Country X sells more than Country Y, that is a reason to say their sales in Country Y are hindered by the price difference created by the tariff imposed by Country Y.

perfectstranger wrote:
9. Country X complains that Country Y*s high tariffs on imported goods have artificially inflated the price of cars imported from Country X into Country Y, and that this is the reason that few of Country X*s cars are sold in Country Y. On the other hand, Country X's very low tariffs allow Country Y to sell many cars there at relatively low prices. Country X says that if Country Y would lower its tariffs, then Country X s cars would be able to compete in Country Y and an equitable balance of trade would be achieved.

Which of the following, if true, would most undermine the validity of Country X's explanation for the poor sales of its cars in Country Y?

A In places where the tariffs on goods from both countries are equal, Country Y's cars far outsell cars from Country X.
B Cars imported from Country Z sell poorly in Country Y.
C In countries where tariffs on imported goods are higher than in Country Y, Country X sells more cars than does Country Y.
D Other goods from Country X sell poorly in Country Y.
E Sales of Country Y*s cars are high even in countries that have higher tariffs on imported goods than does Country X.

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**I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$. GMAT Club Premium Membership - big benefits and savings Director Joined: 01 Jan 2008 Posts: 626 Followers: 5 Kudos [?]: 180 [0], given: 1 Re: CR-High Tarriffs [#permalink] ### Show Tags 21 Jul 2008, 06:17 A is the answer. Senior Manager Joined: 24 Feb 2007 Posts: 265 Location: nj Followers: 1 Kudos [?]: 259 [0], given: 2 Re: CR-High Tarriffs [#permalink] ### Show Tags 21 Jul 2008, 06:51 It looks like A but i couldnt ignore D easily. It keeps on hitting that it could be the answer. SVP Joined: 30 Apr 2008 Posts: 1880 Location: Oklahoma City Schools: Hard Knocks Followers: 41 Kudos [?]: 581 [0], given: 32 Re: CR-High Tarriffs [#permalink] ### Show Tags 21 Jul 2008, 06:59 D doesn't say anything about the tariff. The reason the other products sell poorly could be due to the tariff being against all goods brought into Country Y. It believe it's out of scope. Additionally, the way other products is not necessarily indicative of how cars will sell. _________________ ------------------------------------ J Allen Morris **I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$.

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21 Jul 2008, 07:39
In the paragraph though it wasnt mentioned that sales of car X is < sales of car Y in country Y. It is just mentioned that few of cars X are being sold in country Y. This is what confusing me.

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21 Jul 2008, 07:41
The question states taht Country X says it's cars can't compete in Country Y. This is implied in the question that country Y cars are selling better, or Country X would not be concerned about the ability to compete.

neeshpal wrote:
In the paragraph though it wasnt mentioned that sales of car X is < sales of car Y in country Y. It is just mentioned that few of cars X are being sold in country Y. This is what confusing me.

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J Allen Morris
**I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$. GMAT Club Premium Membership - big benefits and savings VP Joined: 17 Jun 2008 Posts: 1396 Followers: 8 Kudos [?]: 308 [0], given: 0 Re: CR-High Tarriffs [#permalink] ### Show Tags 21 Jul 2008, 08:34 perfectstranger wrote: 9. Country X complains that Country Y*s high tariffs on imported goods have artificially inflated the price of cars imported from Country X into Country Y, and that this is the reason that few of Country X*s cars are sold in Country Y. On the other hand, Country X's very low tariffs allow Country Y to sell many cars there at relatively low prices. Country X says that if Country Y would lower its tariffs, then Country X s cars would be able to compete in Country Y and an equitable balance of trade would be achieved. Which of the following, if true, would most undermine the validity of Country X's explanation for the poor sales of its cars in Country Y? A In places where the tariffs on goods from both countries are equal, Country Y's cars far outsell cars from Country X. B Cars imported from Country Z sell poorly in Country Y. -> out of scope C In countries where tariffs on imported goods are higher than in Country Y, Country X sells more cars than does Country Y. -> correct D Other goods from Country X sell poorly in Country Y. -> irrelevant E Sales of Country Y*s cars are high even in countries that have higher tariffs on imported goods than does Country X. -> we want X cars sale explanation From the highlighted statement its clear that country X assumes the tariffs as the main reason for the country Y's increased success of selling cars.It says if country Y also reduce the tariffs on X then its sales will improve and competent with Y.I think main point is attacked by (C) since this option directly states that there are still countries where tariffs on imported goods are higher than in country Y (which here is affecting X's cars) and there country X sells cars more than country Y does. Hence totally contradicts the highlighted statement given above. When we first see immediately we come tio conclution on (A) as correct but if we carefully view.(A) says In places where the tariffs on goods from both countries are equal, Country Y's cars far outsell cars from Country X here tariffs are considered equal what if tarriffs are low and what if X and Y cars sales depends on other factors than cost when tariffs are low .But its possible if th tariffs are high X does not sell may be people prefer Y cars.Hence tariffs from both cpuntries being equal does not represent the scenario discussed here. _________________ cheers Its Now Or Never Senior Manager Joined: 23 May 2006 Posts: 327 Followers: 2 Kudos [?]: 319 [0], given: 0 Re: CR-High Tarriffs [#permalink] ### Show Tags 21 Jul 2008, 08:48 IMO C as well. SVP Joined: 30 Apr 2008 Posts: 1880 Location: Oklahoma City Schools: Hard Knocks Followers: 41 Kudos [?]: 581 [0], given: 32 Re: CR-High Tarriffs [#permalink] ### Show Tags 21 Jul 2008, 08:52 The OA is A. I just looked it up in my Kaplan Verbal workbook (page 108). _________________ ------------------------------------ J Allen Morris **I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$.

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21 Jul 2008, 08:55
Thanks!!

jallenmorris wrote:
The OA is A. I just looked it up in my Kaplan Verbal workbook (page 108).
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21 Jul 2008, 09:01
In my opinion,

The scope is equitable balance of trade between Country X and Y.

In C, trade between other countries has no bearing on how the trade balance should be between X and Y.

spriya wrote:
perfectstranger wrote:
9. Country X complains that Country Y*s high tariffs on imported goods have artificially inflated the price of cars imported from Country X into Country Y, and that this is the reason that few of Country X*s cars are sold in Country Y. On the other hand, Country X's very low tariffs allow Country Y to sell many cars there at relatively low prices. Country X says that if Country Y would lower its tariffs, then Country X s cars would be able to compete in Country Y and an equitable balance of trade would be achieved.

Which of the following, if true, would most undermine the validity of Country X's explanation for the poor sales of its cars in Country Y?

A In places where the tariffs on goods from both countries are equal, Country Y's cars far outsell cars from Country X.
B Cars imported from Country Z sell poorly in Country Y. -> out of scope
C In countries where tariffs on imported goods are higher than in Country Y, Country X sells more cars than does Country Y. -> correct
D Other goods from Country X sell poorly in Country Y. -> irrelevant
E Sales of Country Y*s cars are high even in countries that have higher tariffs on imported goods than does Country X. -> we want X cars sale explanation

From the highlighted statement its clear that country X assumes the tariffs as the main reason for the country Y's increased success of selling cars.It says if country Y also reduce the tariffs on X then its sales will improve and competent with Y.I think main point is attacked by (C) since this option directly states that there are still countries where tariffs on imported goods are higher than in country Y (which here is affecting X's cars) and there country X sells cars more than country Y does. Hence totally contradicts the highlighted statement given above.

When we first see immediately we come tio conclution on (A) as correct but if we carefully view.(A) says
In places where the tariffs on goods from both countries are equal, Country Y's cars far outsell cars from Country X

here tariffs are considered equal what if tarriffs are low and what if X and Y cars sales depends on other factors than cost when tariffs are low .But its possible if th tariffs are high X does not sell may be people prefer Y cars.Hence tariffs from both cpuntries being equal does not represent the scenario discussed here.
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21 Jul 2008, 09:08
In my opinion,

The scope is equitable balance of trade between Country X and Y.

In C, trade between other countries has no bearing on how the trade balance should be between X and Y.

spriya wrote:
perfectstranger wrote:
9. Country X complains that Country Y*s high tariffs on imported goods have artificially inflated the price of cars imported from Country X into Country Y, and that this is the reason that few of Country X*s cars are sold in Country Y. On the other hand, Country X's very low tariffs allow Country Y to sell many cars there at relatively low prices. Country X says that if Country Y would lower its tariffs, then Country X s cars would be able to compete in Country Y and an equitable balance of trade would be achieved.

Which of the following, if true, would most undermine the validity of Country X's explanation for the poor sales of its cars in Country Y?

A In places where the tariffs on goods from both countries are equal, Country Y's cars far outsell cars from Country X.
B Cars imported from Country Z sell poorly in Country Y. -> out of scope
C In countries where tariffs on imported goods are higher than in Country Y, Country X sells more cars than does Country Y. -> correct
D Other goods from Country X sell poorly in Country Y. -> irrelevant
E Sales of Country Y*s cars are high even in countries that have higher tariffs on imported goods than does Country X. -> we want X cars sale explanation

From the highlighted statement its clear that country X assumes the tariffs as the main reason for the country Y's increased success of selling cars.It says if country Y also reduce the tariffs on X then its sales will improve and competent with Y.I think main point is attacked by (C) since this option directly states that there are still countries where tariffs on imported goods are higher than in country Y (which here is affecting X's cars) and there country X sells cars more than country Y does. Hence totally contradicts the highlighted statement given above.

When we first see immediately we come tio conclution on (A) as correct but if we carefully view.(A) says
In places where the tariffs on goods from both countries are equal, Country Y's cars far outsell cars from Country X

here tariffs are considered equal what if tarriffs are low and what if X and Y cars sales depends on other factors than cost when tariffs are low .But its possible if th tariffs are high X does not sell may be people prefer Y cars.Hence tariffs from both cpuntries being equal does not represent the scenario discussed here.

Can anyone post the OE
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21 Jul 2008, 09:31
Here is the OE from the Kaplan book:

Choice (A) is correct. Find the author's conclusion and evidence, and the assumption linking them. Weaken the argument by invalidating that assumption. The argument develops from evidence that Y's high tariffs make X's cars relatively expensive, but X's low tariffs make Y's car relatively cheap. The arguemnt concludes that if Y lowers its tariffs, then real competition and an equitable balance of trade would result. Country X assumes htat Y sells mroe cars in X than X sells in Y because of the price difference created by the different tariffs. This suggests a classic case of ignored alternatives. Look for a choice that suggests that there might be an alternative explanation besides the difference in tariffs that could explain the weakness of x's car sales relative to Y's. (A) weakens country X's argument by illustrating that the effect (more Y cars sold than X cars) is possible without the supposed cause (a tariff imbalance favoring y). This implies that something other than tariffs--the rason offered by X for its poor performance in the car market--could very well explain the differnce in sales (maybe X's car plain stinks).
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**I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$. GMAT Club Premium Membership - big benefits and savings VP Joined: 17 Jun 2008 Posts: 1396 Followers: 8 Kudos [?]: 308 [0], given: 0 Re: CR-High Tarriffs [#permalink] ### Show Tags 21 Jul 2008, 10:32 jallenmorris wrote: Here is the OE from the Kaplan book: Choice (A) is correct. Find the author's conclusion and evidence, and the assumption linking them. Weaken the argument by invalidating that assumption. The argument develops from evidence that Y's high tariffs make X's cars relatively expensive, but X's low tariffs make Y's car relatively cheap. The arguemnt concludes that if Y lowers its tariffs, then real competition and an equitable balance of trade would result. Country X assumes htat Y sells mroe cars in X than X sells in Y because of the price difference created by the different tariffs. This suggests a classic case of ignored alternatives. Look for a choice that suggests that there might be an alternative explanation besides the difference in tariffs that could explain the weakness of x's car sales relative to Y's. (A) weakens country X's argument by illustrating that the effect (more Y cars sold than X cars) is possible without the supposed cause (a tariff imbalance favoring y). This implies that something other than tariffs--the rason offered by X for its poor performance in the car market--could very well explain the differnce in sales (maybe X's car plain stinks). I agree with the point stated above but what about (C) since i think if (A) says there are other factors deciding the sales of Y over X on the otherhand (C) also directly opposes author's statement.It saying in the presence of same conditions as seen in Y and X countries the X does better than Y in car sales.Does not this statement oppose directly what author complains? _________________ cheers Its Now Or Never SVP Joined: 30 Apr 2008 Posts: 1880 Location: Oklahoma City Schools: Hard Knocks Followers: 41 Kudos [?]: 581 [0], given: 32 Re: CR-High Tarriffs [#permalink] ### Show Tags 21 Jul 2008, 11:20 No, C does not directly oppose the author's point, it actually supports it. The author is saying "We need equal treatment with regard to tariffs. Country Y has a higher tariff on our goods than we have on theirss. If we got rid of this tariff, or made it equal, Country X could compete." In C, we are looking at another country that has a higher tariff. But the thing about this is, that the tariff is going to be equal as levied against Country X and Country Y. So, C says that in this country X sells better than Y. This is exactly what the author is saying in the stem. If you make things equal, Country X will outsell Country Y. Lets call this other country with the very high tariff Country Z. The author could say "I'm right and to prove it, look at Country Z. Both of our countries (X & Y) have to pay the same tariff on our cars sold there and we outsell Country Y. So if Country Y were to make things even, like they are in Country Z, we would be able to be competitive." spriya wrote: jallenmorris wrote: Here is the OE from the Kaplan book: Choice (A) is correct. Find the author's conclusion and evidence, and the assumption linking them. Weaken the argument by invalidating that assumption. The argument develops from evidence that Y's high tariffs make X's cars relatively expensive, but X's low tariffs make Y's car relatively cheap. The arguemnt concludes that if Y lowers its tariffs, then real competition and an equitable balance of trade would result. Country X assumes htat Y sells mroe cars in X than X sells in Y because of the price difference created by the different tariffs. This suggests a classic case of ignored alternatives. Look for a choice that suggests that there might be an alternative explanation besides the difference in tariffs that could explain the weakness of x's car sales relative to Y's. (A) weakens country X's argument by illustrating that the effect (more Y cars sold than X cars) is possible without the supposed cause (a tariff imbalance favoring y). This implies that something other than tariffs--the rason offered by X for its poor performance in the car market--could very well explain the differnce in sales (maybe X's car plain stinks). I agree with the point stated above but what about (C) since i think if (A) says there are other factors deciding the sales of Y over X on the otherhand (C) also directly opposes author's statement.It saying in the presence of same conditions as seen in Y and X countries the X does better than Y in car sales.Does not this statement oppose directly what author complains? _________________ ------------------------------------ J Allen Morris **I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$.

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CR - Assumption 700 level - tariffs [#permalink]

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28 Jul 2011, 05:05
Country X complains that country Y's high tariffs on imported goods have artificially inflated the cost of cars imported from country X into country Y, and that this is the reason that few of country X's cars are sold in country Y. On the other hand, country X's very low tariffs allow country Y to sell many cars there at relatively low prices. Country X says that if country Y would lower its tariffs, then country X's cars would be able to compete in country Y and an equitable balance of trade would be achieved.

Which of the following, if true, would most undermine the validity of country X's explanation for the poor sales of its cars in country Y?

In places where the tariffs on goods from both countries are equal, country Y's cars far outsell cars from country X.
Cars imported from country Z sell poorly in country Y.
In countries where tariffs on imported goods are higher than in country Y, country X sells more cars than does country Y.
Other goods from country X sell poorly in country Y.
Sales of country Y's cars are high even in countries that have higher tariffs on imported goods than does country X.
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Re: CR - Assumption 700 level - tariffs [#permalink]

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28 Jul 2011, 06:24
I narrowed it down between A and C and then I chose C because it undermines the idea that the reason X cannot compete is because of high tariffs.

A was tricky, but I eliminated it because even if Tariff levels are equal in a certain country, they might be high or low relative to Y. C had the proper tariff relationship. At least in that answer choice I knew they country we are talking about had higher tariffs than Y.
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Re: CR - Assumption 700 level - tariffs [#permalink]

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28 Jul 2011, 06:40
I choose E.

Country X complains that country Y's high tariffs on imported goods have artificially inflated the cost of cars imported from country X into country Y, and that this is the reason that few of country X's cars are sold in country Y. On the other hand, country X's very low tariffs allow country Y to sell many cars there at relatively low prices. Country X says that if country Y would lower its tariffs, then country X's cars would be able to compete in country Y and an equitable balance of trade would be achieved.

Which of the following, if true, would most undermine the validity of country X's explanation for the poor sales of its cars in country Y?

a) In places where the tariffs on goods from both countries are equal, country Y's cars far outsell cars from country X.
b) Cars imported from country Z sell poorly in country Y.
c) In countries where tariffs on imported goods are higher than in country Y, country X sells more cars than does country Y.
d) Other goods from country X sell poorly in country Y.
e) Sales of country Y's cars are high even in countries that have higher tariffs on imported goods than does country X.

Explanation: The correct answer choice must weaken the conclusion. The conclusion is: If equal balance of trade is achieved between Country X and Country Y, then Country's X cars will be able to compete.
How can they balance trades? IF Country Y reduces tariffs.

a) Incorrect. This statement refers to Country X and Y's competition with regards to other countries.
b) Out of scope. country Z...
c) It doesn't weaken the point "Country's X cars will be able to compete." It just states that country X sells more cars.
d) Out of scope. Talks about other goods when the topic of discussion is Cars.
e) This shows that reducing tariffs won't attribute to achieving high sales.
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Last edited by Shoumik on 28 Jul 2011, 07:04, edited 2 times in total.
Re: CR - Assumption 700 level - tariffs   [#permalink] 28 Jul 2011, 06:40

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