GMAT Verbal : Business Passages
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Example Question #2 : Making Inferences In Business Passages
The United Nations Convention on Contracts for the International Sale of Goods (CISG) can help countries throughout the world have a more uniform way of navigating the challenging waters of international law surrounding trade. It is not uncommon for two countries to have adopted different laws on international trade that conflict with each other. This becomes a serious problem when trade disputes arise. To help make this concept more tangible, consider the following hypothetical.
Suppose China ships three million dollars' worth of electronics to Uganda using standard bulk shipping transportation methods via a commonly traveled sea route. However, the packaging isn't secured in a manner sufficient to withstand unforeseen weather conditions. As a result, the goods become damaged in transit and are no longer fit for resale. Given that two countries are involved in this transaction–China and Uganda–the question arises as to which country’s trade laws will apply to resolve the matter at hand.
In this scenario, it is fortunate that both China and Uganda are parties to the CISG, which provide for a uniform set of laws governing trade. Such laws cover which party would be responsible for the damaged goods in this scenario. As a result, there will be no dispute as to whether China’s or Uganda's trade laws apply. Given that both countries are parties to the CISG, the laws set forth by the CISG would be applicable.
However, not all countries are parties to the CISG. One example is Rwanda. Even though Rwanda is not a party to the CISG, the fact of the matter is that CISG laws can still apply to it. The CISG applies to trade between countries so long as one of those countries is a party to the CISG (unless the parties expressly specify that the CISG will not apply to their specific trade arrangement). Several of Rwanda's main trade partners, such as the United States, China, Belgium, and Uganda, are parties to the CISG, so the laws of the treaty will apply in those trade agreements. Meanwhile, there is a different story when it comes to Rwanda's trade agreements with Kenya, Swaziland, Tanzania, and Thailand, which are not parties to the CISG. Due to these countries’ lack of membership in the CISG, if a problem ever arose in a trade agreement between Rwanda and one those countries, it would be unclear as to which country’s laws would apply.
There has been heated discussion as to whether Rwanda should sign the CISG. The United Nations Development Program takes the stance that it would behoove Rwanda to join. Whether or not Rwanda decides to become a member, the CISG will still apply to a large portion of its trade agreements, as about 100 countries are in fact CISG members, with a strong portion of those members also being trade partners with Rwanda. On the flip side, some Rwandan politicians believe that valuable autonomy would be lost if Rwanda assented to the CISG. However, given the potential benefits that Rwanda stands to gain from the CISG, these fears do not merit forgoing such a valuable opportunity.
The author would most likely agree with which of these statements?
It would be to Rwanda's benefit to join the CISG.
Although joining the CISG has benefits, Rwanda ultimately should not join the CISG.
It is imperative that Rwanda join the CISG in order to avoid impending trade disputes that could prove to be disastrous.
The CISG has a narrow window of applicability.
There are positive and negative aspects that Rwanda should weigh and balance when deciding whether to join the CISG.
It would be to Rwanda's benefit to join the CISG.
The correct answer is, "It would be to Rwanda's benefit to join the CISG."
A tempting wrong answer is "It is imperative that Rwanda join the CISG in order to avoid impending trade disputes that could prove to be disastrous." However, this is not correct because the author does not take such an extreme position. While the author believes it would be in Rwanda's favor to join the CISG, there is no indication that the author foresees disastrous results if Rwanda foregoes joining.
The other answer choices state positions that are directly contrary to the author's arguments:
"The CISG has a narrow window of applicability," is wrong because the author argues that the CISG is broadly applicable.
"Although joining the CISG has benefits, Rwanda ultimately should not join the CISG," is wrong because the author states that Rwanda should join the CISG.
"There are positive and negative aspects that Rwanda should weigh and balance when deciding whether to join the CISG," is wrong because the author does not argue that Rwanda should weigh and balance positives and negatives, but rather states that Rwanda should simply join.
Example Question #3 : Extrapolating From The Text In Business Passages
The United Nations Convention on Contracts for the International Sale of Goods (CISG) can help countries throughout the world have a more uniform way of navigating the challenging waters of international law surrounding trade. It is not uncommon for two countries to have adopted different laws on international trade that conflict with each other. This becomes a serious problem when trade disputes arise. To help make this concept more tangible, consider the following hypothetical.
Suppose China ships three million dollars' worth of electronics to Uganda using standard bulk shipping transportation methods via a commonly traveled sea route. However, the packaging isn't secured in a manner sufficient to withstand unforeseen weather conditions. As a result, the goods become damaged in transit and are no longer fit for resale. Given that two countries are involved in this transaction–China and Uganda–the question arises as to which country’s trade laws will apply to resolve the matter at hand.
In this scenario, it is fortunate that both China and Uganda are parties to the CISG, which provide for a uniform set of laws governing trade. Such laws cover which party would be responsible for the damaged goods in this scenario. As a result, there will be no dispute as to whether China’s or Uganda's trade laws apply. Given that both countries are parties to the CISG, the laws set forth by the CISG would be applicable.
However, not all countries are parties to the CISG. One example is Rwanda. Even though Rwanda is not a party to the CISG, the fact of the matter is that CISG laws can still apply to it. The CISG applies to trade between countries so long as one of those countries is a party to the CISG (unless the parties expressly specify that the CISG will not apply to their specific trade arrangement). Several of Rwanda's main trade partners, such as the United States, China, Belgium, and Uganda, are parties to the CISG, so the laws of the treaty will apply in those trade agreements. Meanwhile, there is a different story when it comes to Rwanda's trade agreements with Kenya, Swaziland, Tanzania, and Thailand, which are not parties to the CISG. Due to these countries’ lack of membership in the CISG, if a problem ever arose in a trade agreement between Rwanda and one those countries, it would be unclear as to which country’s laws would apply.
There has been heated discussion as to whether Rwanda should sign the CISG. The United Nations Development Program takes the stance that it would behoove Rwanda to join. Whether or not Rwanda decides to become a member, the CISG will still apply to a large portion of its trade agreements, as about 100 countries are in fact CISG members, with a strong portion of those members also being trade partners with Rwanda. On the flip side, some Rwandan politicians believe that valuable autonomy would be lost if Rwanda assented to the CISG. However, given the potential benefits that Rwanda stands to gain from the CISG, these fears do not merit forgoing such a valuable opportunity.
Which of the following, if true, would be most likely to weaken the author’s argument that Rwanda should join the CISG?
Kenya, Swaziland, Tanzania and Thailand have since become CISG members.
Most Rwanda politicians encourage Rwanda to join the CISG.
The United States has a neutral stance as to whether Rwanda should join the CISG.
The article was written several years ago, and in the elapsed time, many member countries to the CISG have withdrawn their membership.
The majority of Rwanda’s trade is conducted with Kenya, Swaziland, Tanzania and Thailand.
The article was written several years ago, and in the elapsed time, many member countries to the CISG have withdrawn their membership.
The option that would be most likely to weaken the author's argument is, "The article was written several years ago, and in the elapsed time, many member countries to the CISG have withdrawn their membership." Given that the CISG draws its power from the fact that many countries are a member, if countries began withdrawing their membership, the CISG would lose power. This would make it less enticing for Rwanda to join.
A tempting wrong answer choice is "The United States has a neutral stance as to whether Rwanda should join the CISG." While this would not necessarily help the author's argument, it would not weaken it as much as the correct answer choice.
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