XYZ company developed a skin cream, used for hiding blemishes and spots. The cream did extremely well in the first quarter of the year, with customers absolutely raving about it, and XYZ raking in massive profits. However, in the next three quarters, the reviews became progressively worse, and the company XYZ, started making losses. The president of XYZ, in an apology statement, said that the company shifted manufacturing to China, after the first quarter, as demand had skyrocketed, and labour there was cheap, and this led to a loss of standards. Which option strengthens the president's argument?
XYZ company developed a skin cream, used for hiding blemishes and spots. The cream did extremely well in the first quarter of the year, with customers absolutely raving about it, and XYZ raking in massive profits. However, in the next three quarters, the reviews became progressively worse, and the company XYZ, started making losses. The president of XYZ, in an apology statement, said that the company shifted manufacturing to China, after the first quarter, as demand had skyrocketed, and labour there was cheap, and this led to a loss of standards. Which option strengthens the president's argument? Correct Answer A study conducted, showed that China's climatic conditions led to the formation of a bacteria that was resistant to the chemicals in the skin cream, and exacerbated already existing skin conditions.
Option 1 is correct, as it implies that the climatic conditions present in China, were different from the previous place of manufacturing, which has led to the formation of the bacteria and thus brought down the effectiveness of the product.
Hence, shifting to China has bought a dip in standards, which is the President's argument. Hence, option 1 is correct.
Option 2, mentions nothing specific about China, and hence this suggests that it could have happened anywhere, thus not offering support to the President's argument.
Hence, only option 1 is correct.