GMAT : Analysis of An Argument

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An Argument

6. The following appeared as part of an article in a magazine devoted to regional life.

Corporations should look to the city of Helios when seeking new business opportunities or a new location. Even in the recent recession, Helios's unemployment rate was lower than the regional average. It is industrial centre of the region and historically it has provided more than its share of the region's manufacturing jobs. In addition, Helios is attempting to expand its economic base by attracting companies that focus on research and development of innovative technologies.


Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underline the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would make it more logically sound and what, if anything, would help you better evaluate in conclusion.


In this argument corporations are urged to consider the city of Helios when seeking a new location or new business opportunities. In support of this recommendation the author points out that, Helios is the industrial centre of the region, provides most of the region's manufacturing jobs and enjoys a lower than average unemployment rate. Moreover, it is argued, efforts are currently underway to expand the economic base of the city by attracting companies that focus on research and development of innovative technologies.

This argument is problematic for two reasons.

To begin with, it is questionable whether the available labor pool in Helios could support all types of corporations. Given that Helios has attracted mainly industrial and manufacturing companies in the past, it is unlikely that the local pool of prospective employees would be suitable for corporations of other types.

For example, the needs of research and development companies would not be met by a labor force trained in manufacturing skills. For this reason, it is unlikely that Helios will be successful in its attempt to attract companies that focus on research and development of innovative technologies.

Another problem with the available work force is its size. Due to the lower than average unemployment rate in Hellos, corporations that require large numbers of workers would not find Hellos attractive. The fact that few persons are out of work suggests that new corporations will have to either attract new workers to Helios or pay the existing workers higher wages in order to lure them away from their current jobs. Neither of these alternatives seems enticing to companies seeking to relocate.

In conclusion, the author has not succeeded in providing compelling reasons for selecting Helios as the site for a company wishing to relocate. In fact, the reasons offered function better as reasons for not relocating to Helios. Nor has the author provided compelling reasons for companies seeking new business opportunities to choose Helios.

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