The following appeared as part of the business plan of an investment and financial consulting firm.
Studies suggest that an average coffee drinkers consumption of coffee increases with age, from age 10 through age 60. Even after age 60, coffee consumption remains high. The average cola drinkers consumption of cola, however, declines with increasing age. Both of these trends have remained stable for the past 40 years. Given that the number of older adults will significantly increase as the population ages over the next 20 years, it follows that the demand for coffee will increase and the demand for cola will decrease during this period. We should, therefore, consider transferring our investments from Cola Loca to Early Bird Coffee.
Discuss how well reasoned... etc.
In this argument a consulting firm recommends the transfer of investments from Cola Loca to Early Bird Coffee because, during the next 20 years, coffee demand will increase while cola demand will decrease. This prediction is based on the expectation that the number of older adults will significantly increase over the next 20 years, together with statistics, reportedly stable for the past 40 years, indicating that coffee consumption increases with age while cola consumption declines with increasing age. For three reasons, this financial advice may not be sound.
First, the argument assumes that relative supply conditions will remain unchanged over the next twenty years. However, the supply and cost of cola and coffee beans, as well as other costs of doing business as a producer of coffee or cola, may fluctuate greatly over a long time period. These factors may affect comparative prices of coffee and cola, which in turn may affect comparative demand and the value of investments in coffee and cola companies. Without considering other factors that contribute to the value of a coffee or cola company, the firm cannot justify its recommendation.
Secondly, the argument fails to account for the timing of the increase in coffee consumption. Perhaps the population will age dramatically during the next five years, then remain relatively flat over the following 15 years. Or perhaps most of the increase in average age will occur toward the end of the 20-year period. An investor has more opportunity to profit over the short and long term in the first scenario than in the second, assuming the investor can switch investments along the way. If the second scenario reflects the facts, the firms recommendation would be ill-founded.
Finally, the firm unjustifiably relies on the studies that correlate coffee and cola consumption with age. The firm does not provide evidence to confirm the reliability of the studies. Moreover, while the phrase studies suggest may appear to lend credibility to these claims, the phrase is vague enough to actually render the claims worthless, in the absence of any information about them.
In conclusion, the firm should not transfer investments from Cola Loca to Early Bird Coffee on the basis of this argument. To better evaluate the recommendation, we would need more information about the study upon which it relies. We would also need more detailed projections of population trends during the next 20 years.
上一篇: 精选GMAT写作范文50篇(23)
下一篇: 精选GMAT写作范文50篇(1)
国际英语资讯:Russian military denies attacks on civilians in Syrias Idlib
国内英语资讯:China stresses winning battle against poverty while fighting epidemic
国际英语资讯:3 firefighters killed, 9 injured in building collapse in Indian-controlled Kashmir
国际英语资讯:Ukrainian President Zelensky hopes for elections in E. Ukraine this fall
体坛英语资讯:Coach Stojkovic leaves Guangzhou R&F
国际英语资讯:Pentagon confirms death of one U.S. soldier in Afghanistan
国内英语资讯:Xi stresses improving mechanism for major epidemic prevention, control
国际英语资讯:Commentary: Time to build positive momentum in China-U.S. ties
体坛英语资讯:World Cup champion Fan Zhendong close to world championships berth
体坛英语资讯:Olympic winner Friedrich claims 4-man bobsleigh title at Winterberg World Cup
国内英语资讯:Coronavirus-hit city in Hubei to take strictest control measures
国际英语资讯:Spotlight: Egypt proposes joint force to fight terrorism on African continent
国际英语资讯:UK chancellor of the exchequer resigns amid major cabinet reshuffle
国际英语资讯:Spotlight: Israeli tourism exhibition highlights potential of Chinese market
国内英语资讯:Vice premier stresses stable employment amid epidemic
国内英语资讯:China pushes for differentiated measures to battle coronavirus
国际英语资讯:Parliament of North Macedonia ratifies NATO accession protocol
国际英语资讯:Pakistani govt announces subsidy to rein in rampant inflation
国内英语资讯:World leaders show support for Chinas fight against COVID-19
国内英语资讯:Chinese, German FMs hold 5th round of China-Germany strategic dialogue on diplomacy, securit
国际英语资讯:EIB pledges billions of euros to Greece in 2020
国内英语资讯:Vice premier calls for all-round efforts to battle epidemic in Wuhan, Hubei
国际英语资讯:Roundup: U.S. Attorney General Barr under fire over cases linked with Trumps former allies
国内英语资讯:Premier Li inspects epidemic prevention, control work at Beijing train station
体坛英语资讯:Real Madrid eyeing Brazil U-23 starlet Reinier
国际英语资讯:U.S. Fed chairman says current monetary policy likely to remain appropriate
国内英语资讯:Spokesperson urges U.S. politicians to stop smearing China
体坛英语资讯:Hazard out for another week, no disaster not to win trophy, says Zidane
国内英语资讯:Xi, Malaysian PM talk over phone on novel coronavirus epidemic
国际英语资讯:U.S. envoy, Turkish officials discuss Syria issue amid Turkish-Russian tension over escalati