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Sample Response to GMAT AWA Argument Questions

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 the industrial center 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 . . . Etc.

In this article, corporations are encouraged to settle their business in the city of Helios when seeking new business opportunities or a new location. The recommendation is based on the fact that Helios is the industrial center of the region, given that the city provided more than its share of manufacturing jobs and its unemployment rate is lower than average. Furthermore, the city is taking efforts to expand the economic base of the city by attracting companies that focus on research and development of innovative technologies. This argument is somewhat persuasive but not convincing for the following two reasons.

First, lower-than-average unemployment rate seems attractive to job applicants, but actually not good for corporations. Because of the lower than average unemployment rate in Helios, companies that should recruit large numbers of employees would not find Helios a great place. Lower unemployment rate means that the incoming corporations will have to recruit new workers outside the city of Helios or lure the existing workers away from their current jobs with higher wages. Both of these two alternatives will result in higher recruiting costs, and therefore make Helios a BAD place for business.

Second, it is questionable whether the available labor in Helios could support all types of business. Even though the city of Helios has great environment for industrial and manufacturing companies, it is likely that the local prospective employees are not suitable for other types of corporations, such as financial service companies. Furthermore, the city’s attempt to attract companies that focus on research and development of innovative technologies does not necessarily result in the expanding economic base as it expect.

In sum, the author did not provide compelling reasons for why Helios is a great site for a company wishing to relocate. Nor has the author provided compelling reasons for companies seeking new business opportunities to choose Helios. If the author had included the above items, it may be more convincing.
 


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