GMAT Critical Reasoning
The Flerenchian government decided to limit the import of chocolate from the four countries which export the greatest amount of chocolate to Flerenchia. An analyst hired by the government maintains that in the near future this will cause a large increase in domestic sales of chocolate produced in Flerenchia.
Which of the following, if true, would most likely render this prediction inaccurate?
- A A new tax bill that would discourage foreign investment in the chocolate industry is being debated by the Flerenchian government.
- B Flerenchian companies" orders for milk chocolates, which account for 60 percent of sales by chocolate companies, rose faster than for other types of chocolates during the past year.
- C Worldwide orders for chocolate made in Flerenchia dropped by more than 15 percent during the past year.
- D Substantial inventories of foreign-made chocolate were stockpiled in Flerenchia during the past year.
- E Companies in the chocolate industries of many countries showed a significantly increased demand for chocolate during the past year.
Correct Answer: D