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Critical Reasoning: Dialog Format

Mark: The taxes on our business are really high here. We should move our operations to a foreign country, and in that way, increase our profits.

Alan: Governments reject the requests of foreign companies that wish to perform private development within their borders since such companies merely abuse the local resources.

Which of the following, if true, most supports Mark's position?

Incorrect.

[[snippet]]

This answer choice weakens Mark's position since it suggests a completely different way in which taxes can be dealt with. Since Mark is pushing to transfer the company to a foreign location, this answer choice can do nothing to strengthen his position.

Incorrect.

[[snippet]]

This answer choice actually weakens Mark's recommendation by providing an actual statistic showing that most companies that carry out Mark's plan - 2 out of 3 or 66.6% -  encounter complications.

Incorrect.

[[snippet]]

This answer choice weakens Mark's position by offering an alternative method to combat the burden of taxes on a business. Since Mark is recommending the transfer of the company to a foreign location, this answer choice does nothing to strengthen his position.

Incorrect.

[[snippet]]

This answer choice strengthens Alan's position and, therefore, weakens Mark's. By providing another negative aspect of foreign business operations that is disliked (disapproved) by governments, Alan's consideration is validated and Mark's recommendation to move the company begins to look less attractive.

Very well done!

[[snippet]]

This answer choice attacks Alan's claim that governments are against the transferal of foreign operations into their territory. Nourishing the economy is a good thing, and since this statement shows that more countries are accepting foreign business operations, Mark's recommendation is indirectly strengthened.

To prevent a situation where taxes place too much of a burden on a business, every company has the right to claim tax deductions.
Transferring a company to a foreign location is an attractive option for many reasons, though two in every three companies that do so encounter complications.
A recent international trend is the reforming of policies concerned with the admission of foreign business operations as such operations often nourish the economy.
Auditing companies can provide expert advice on how to limit the taxes that need to be paid by any specific business.
Companies that operate in foreign countries often employ workers of their own nationality, an act that is disapproved by most governments.