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Location to Expand a Business

GMAT-4VGJLA

Karen and Cindy plan to expand their existing business and are considering two regions but they have a difference of opinion on which is best. Karen feels that Region 1 has strong advantages over Region 2. Region 1 has an educated work force and modern infrastructure that the business will need to grow. It has fine schools and parks, plenty of recreation and access to foreign markets. Region 1 is cosmopolitan and diverse. Middle class families struggle to afford homes in this region, but the quality of life entices them to remain

Cindy feels that Region 2 makes better sense than Region 1 because the cost of doing business in Region 2 is significantly lower. Region 2 lacks a qualified work force. However, the tax structure in Region 2 is so favorable to business that Karen and Cindy can afford to pay good wages and provide benefits like training and child care that wouldn't be possible in Region 1. Cindy feels that educated workers will be willing to move to Region 2 because the somewhat lower quality of life is offset by the much lower cost of living. Additionally, the benefits Karen and Cindy could offer in this region would be unusual in their industry.

Suppose the following are news headlines appearing in local and/or national newspapers. Choose the headline which makes Karen the most likely to reconsider her own position, and do the same for Cindy. Make only two selections, one in each column.

Karen

Cindy

Karen

Cindy

New Congress to Consider New Taxes in Region 2

Karen

Cindy

Middle Class Families Flee to Region 1 Suburbs

Karen

Cindy

Infrastructure Hardest Hit by Falling Tax Revenues Nationally

Karen

Cindy

Region 2 Landfill Dilemma Spooks Investors

Karen

Cindy

Region 1 Schools Fall Short of Expectations; Violence on the Rise