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OG 11 - RC - the primary economic development strategy -

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agarwalva Really wants to Beat The GMAT! Default Avatar
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OG 11 - RC - the primary economic development strategy - Post Wed Apr 25, 2012 9:06 am
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  • Lap #[LAPCOUNT] ([LAPTIME])
    During the 1960’s and 1970’s, the primary economic development strategy of local governments in the United States was to attract manufacturing industries. Unfortunately, this strategy was usually implemented at another community’s expense: many manufacturing facilities were lured away from their moorings elsewhere through tax incentives and slick promotional efforts. Through the transfer of jobs and related revenues that resulted from this practice, one town’s triumph could become another town’s tragedy.

    In the 1980’s the strategy shifted from this zero-sum game to one called “high-technology development,” in which local governments competed to attract newly formed high-technology manufacturing firms. Although this approach was preferable to victimizing other geographical areas by taking their jobs, it also had its shortcomings: high-tech manufacturing firms employ only a specially trained fraction of the manufacturing workforce, and there simply are not enough high-tech firms to satisfy all geographic areas.

    Recently, local governments have increasingly come to recognize the advantages of yet a third strategy: the promotion of homegrown small businesses. Small indigenous businesses are created by a nearly ubiquitous resource, local entrepreneurs. With roots in their communities, these individuals are less likely to be enticed away by incentives offered by another community. Indigenous industry and talent are kept at home, creating an environment that both provides jobs and fosters further entrepreneurship.

    The primary purpose of the passage is to

    A) advocate more effective strategies for encouraging the developemtn of high-technology enterprises in the United States
    B) contrast the incentives for economic developemnt offered by local governments with those offered by the private sector
    C) acknowledge and counter adverse criticism of programs being used to stimulate local economic development
    D) define and explore promotional efforts used by local governments to attract new industry
    E) review and evaluate strategies and programs that have been used to stimulate economic development

    OA e. I was confused with C. the passage is acknowledging and criticizing the programs. Though I thought E was close and I marked that as my answer but want to know whats wrong with C

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    rashmilagisetty Just gettin' started! Default Avatar
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    Post Sun Apr 29, 2012 8:01 am
    so is the OA e?? I feel he is assessing the strategy too at end of each para.

    ice_rush GMAT Destroyer! Default Avatar
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    Post Mon Apr 30, 2012 11:22 am
    nowhere in the passage do we see adverse criticism of programs. Also, local economy is mentioned only in paragraph 3.


    hope this helps.

    imhimanshu Rising GMAT Star Default Avatar
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    Post Tue May 01, 2012 10:17 am
    Would like to give my 2 cents here-

    Para 1 - One Strategy and its implications are discussed i.e through incentives, manufacturing industries went to another state and consequently labor.
    Para 2- Another strategy discusses and some implications
    Para 3- Third strategy but it may help in avoiding the implications discussed above
    Below is the line through which you can infer the above statement
    "With roots in their communities, these individuals are less likely to be enticed away by incentives offered by another community. Indigenous industry and talent are kept at home, creating an environment that both provides jobs and fosters further entrepreneurship. "

    Now , go back to options-

    a)advocate more effective strategies for encouraging the developemtn of high-technology enterprises in the United States - discussed only in the last passage. Primary purpose should take the complete passage into consideration. Also, author is not discussing High technology. Hence Incorrect
    B) contrast the incentives for economic developemnt offered by local governments with those offered by the private sector .. No Contrast, nos where our passage map suggest that
    C) acknowledge and counter adverse criticism of programs being used to stimulate local economic development. See Criticism is not what the author is doing. Its just found out the disadvantages. ADVERSE Criticsm is too STRONG word. Remember you always take TONE into consideration when finding the primary purpose. If the author would have critic-sing, he would have used too strong words.

    Also, ACKNOWLEDGING of programs.. NO.. he is just giving you description about strategies. Giving description and acknowledging are too different things.


    D) define and explore promotional efforts used by local governments to attract new industry
    E) review and evaluate strategies and programs that have been used to stimulate economic development
    Also, see the tone of the this choice ans check if it matches with the Passage's tone or not.. you will be amazed to find ot that tone plays a major role in cancelling out the options

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