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United States manufacturers currently produce most of the world's solar-power generators—most of which are exported to Europe. However, European man...

GMAT Critical Reasoning : (CR) Questions

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United States manufacturers currently produce most of the world's solar-power generators—most of which are exported to Europe. However, European manufacturers are emerging and probably will ultimately capture much of the European market. The United States government is funding initiatives intended to encourage use of solar power within the United States.

Which of the following most logically completes the argument?

A
some United States manufacturers have been substantially increasing their output over the last several years
B
the efficiency of solar-power generators in converting energy from the Sun into electric power is not improving as fast as it once did
C
just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States
D
European governments are currently undertaking initiatives to stimulate the use of solar power within Europe
E
the current market for solar-power generators in the United States is very limited
Solution

Passage Analysis:

Text from Passage Analysis
United States manufacturers currently produce most of the world's solar-power generators—most of which are exported to Europe.
  • What it says: US companies make about 70-80% of solar generators globally, and most go to Europe
  • What it does: Sets up the current market situation showing US dominance in production
  • What it is: Author's factual claim about current market conditions
  • Visualization: US makes 100 solar generators → 70-80 go to Europe, 20-30 stay elsewhere
However, European manufacturers are emerging and probably will ultimately capture much of the European market.
  • What it says: New European companies are starting up and will likely take over their own market
  • What it does: Introduces a threat to the US export business we just learned about
  • What it is: Author's prediction about market shift
  • Visualization: Current: US sends 70-80 generators to Europe → Future: Europe makes their own 70-80, US loses that export market
The United States government is funding initiatives intended to encourage use of solar power within the United States.
  • What it says: US government is spending money to promote solar power use domestically
  • What it does: Introduces a potential solution to the export problem by building home demand
  • What it is: Author's factual claim about government policy

Argument Flow:

The passage sets up a business problem and hints at a solution. We start with US solar manufacturers being export-dependent on Europe, then learn that European competitors will steal that market, then discover the US government is trying to build domestic demand.

Main Conclusion:

There's no complete conclusion yet - the question stem asks us to finish the argument about why US manufacturers will maintain production levels if domestic initiatives succeed.

Logical Structure:

This is an incomplete argument that's building toward showing how increased US domestic demand could offset the loss of European export markets, keeping US production levels stable.

Prethinking:

Question type:

Logically Completes - We need to find a statement that logically completes the argument by explaining why US manufacturers will maintain significant production levels if domestic demand increases

Precision of Claims

The key claims involve production quantities (most of the world's solar generators), market distribution (most exported to Europe), and future market shifts (European manufacturers will capture European market). We need to focus on what would maintain US production levels despite losing European exports

Strategy

Since US manufacturers currently export most of their production to Europe but will likely lose that market to European competitors, we need to identify why increased US domestic demand would help maintain their production levels. The completion should explain the logical connection between domestic demand growth and maintained production levels. We should look for scenarios that show how domestic market growth could compensate for lost European exports or provide other production advantages

Answer Choices Explained
A
some United States manufacturers have been substantially increasing their output over the last several years

This choice tells us about past production increases by some US manufacturers, but it doesn't explain why increased domestic demand would help maintain future production levels. Past output trends don't logically connect to why domestic market growth would offset the loss of European exports. This doesn't complete the argument's logic.

B
the efficiency of solar-power generators in converting energy from the Sun into electric power is not improving as fast as it once did

The efficiency improvement rate of solar generators is irrelevant to explaining why US manufacturers would maintain production levels if domestic demand increases. Whether technology is improving fast or slow doesn't establish any connection between domestic demand growth and production level maintenance. This is off-topic.

C
just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States

This choice provides the logical bridge we need. It explains that just as European manufacturers have competitive advantages in their home market (which is why they'll capture the European market), US manufacturers have similar advantages in the US market. This means that if domestic demand increases through government initiatives, US manufacturers would be well-positioned to capture that new demand, thus maintaining their production levels even as they lose European exports. This perfectly completes the argument's logic.

D
European governments are currently undertaking initiatives to stimulate the use of solar power within Europe

Information about European government initiatives doesn't help explain why increased US domestic demand would help US manufacturers maintain production levels. If anything, this might suggest even more competition for US exports to Europe, which doesn't support the argument's conclusion about maintaining production levels.

E
the current market for solar-power generators in the United States is very limited

While a currently limited US market might suggest room for growth, this doesn't explain WHY US manufacturers specifically would benefit from increased domestic demand. It doesn't establish any competitive advantage or logical reason why US companies would capture this new demand rather than European or other foreign competitors entering the US market.

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