Question: Claim: Country X’s government lowered tariff barriers because doing so served the interests of powerful foreign companies.Principle: In order for a change to be explained by the advantage some person or group gained from it, it must be shown how the interests of the person or group played a role in bringing about the change.
Which one of the following, if true, can most logically serve as a premise for an argument that uses the principle to counter the claim?
(A) Foreign companies did benefit when Country X lowered tariff barriers, but consumers in Country X benefited just as much.
(B) In the period since tariff barriers were lowered, price competition among importers has severely limited importers’ profits from selling foreign companies’ products in Country X.
(C) It was impossible to predict how Country X’s economic reforms, which included lowering tariff barriers, would affect the economy in the short term.
(D) Many of the foreign companies that benefited from Country X’s lowering tariff barriers compete fiercely among themselves both in Country X and in other markets.
(E) Although foreign companies benefited when Country X lowered tariff barriers, there is no other evidence that these foreign companies induced the change.
Explanation
(A) Foreign companies did benefit when Country X lowered tariff barriers, but consumers in Country X benefited just as much. The given statement is incorrect because this statement is just a possibility as it does not counter any claim regarding the induced change in the foreign countries.
(B) In the period since tariff barriers were lowered, price competition among importers has severely limited importers’ profits from selling foreign companies’ products in Country X. The given statement is incorrect because it only discussed the profits of the importers but not about the foreign companies. Low tariffs does not always mean high imports.
(C) It was impossible to predict how Country X’s economic reforms, which included lowering tariff barriers, would affect the economy in the short term. The given statement is incorrect because this statement is just out of scope.
(D) Many of the foreign companies that benefited from Country X’s lowering tariff barriers compete fiercely among themselves both in Country X and in other markets. The given statement is incorrect because the changes do not affect the competition.
(E) Although foreign companies benefited when Country X lowered tariff barriers, there is no other evidence that these foreign companies induced the change. The given statement is incorrect because there is no evidence related to the induced changes in the foreign companies while accepting that companies gained from the change.
“Claim: Country X’s government lowered tariff ”- is a question of critical reasoning in a section of GMAT Verbal Reasoning. It examines the logical reasoning of the candidate in the test. The Critical Reasoning question type is used to measure critical business skills. GMAT Critical Reasoning questions assess a distinct set of qualities associated with logic. The students preparing for the GMAT will experience the argument analysis of Critical Reasoning for the first time to substantiate their logic.
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