The following appeared in a memo from the president of Viva-Tech, a manufacturer of high-tech medical equipment.
"In order to reduce costs, we should close some of our existing small assembly plants and build a large central plant. Grandview would be an ideal location for this new plant. First, of the locations that we have considered, Grandview has the largest adult population, so that we will be able to staff our plant quickly and easily. Second, since the average wage earned by workers in Grandview is less than that in the other locations, we should be able to keep production costs low. Last, as an inducement for us to build there, Grandview's town council has offered to allow us to operate for the first three years without paying city taxes." - GRE Argument 22
In this memo the president of Viva-Tech, a high-tech medical equipment firm, recom mends closing its small assembly plants and centralizing its operations at one location--in the city of Grandview. To support this recommendation the president points out certain attractive demographic features, as well as the town's willingness to allow Viva-Tech to operate there without paying property taxes for the first three years. However, careful scrutiny of the evidence reveals that it provides little credible support for the president's recommendation.
To begin with, the fact that Grandview's adul...
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