• Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep

PLS HELP ME EXPLAIN THIS!

This topic has 4 member replies

PLS HELP ME EXPLAIN THIS!

Post Tue Aug 14, 2007 10:54 pm
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    Hi everybody,there is a passage from OG 10th with just 1 question = explanation that I don't fully understand. My mother tongue is not English,could anyone help me explain this question? Thanks a lot!

    Here is the passage:
    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.


    Here is the question:
    145. The passage suggests which of the following about the majority of United States manufacturing industries
    before the high-technology development era of the 1980's?
    (A) They lost many of their most innovative personnel to small entrepreneurial enterprises.
    (B) They experienced a major decline in profits during the 1960's and 1970's.
    (C) They could provide real economic benefits to the areas in which they were located.
    (D) They employed workers who had no specialized skills.
    (E) They actively interfered with local entrepreneurial ventures.

    Here is the answer of OG
    145.
    The best answer is C. The final sentence of the first paragraph suggests that, during the 1960's and
    1970's, a town that attracted a manufacturer thereby achieved a "triumph" (line 9), whereas a town
    losing one of these industries suffered a "tragedy" (line 10). It is thus suggested that the majority of these industries prior to the 1980's could provide real economic benefits to the areas in which
    they were located. Choice D can be eliminated, because although the last sentence of the second paragraph suggests that manufacturing industries prior to the 1980's did not limit their employment to a specially trained fraction of manufacturing workers, it does not suggest that the
    majority of these industries employed workers who had no specialized skills. Nothing in the passage suggests any of the statements made in A, B, and E


    Here is my Explantion
    I don't agree with the explanation from OG because, according to the passage, the strategy for 60s-70s period is "the zero-sum game" and " one town's triumph could become another town's tragedy." So , how can we say that the MAJORITY of United States manufacturing industries could provide real economic benefits to the areas in which they were located.?

    I'm looking forward to your reply, thanks a lot!

    Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!
    Post Sat Aug 18, 2007 12:03 am
    Nobody helps me? Pls. Did I post in a wrong place?

    devesh Senior | Next Rank: 100 Posts Default Avatar
    Joined
    18 Jun 2007
    Posted:
    57 messages
    Post Sat Aug 18, 2007 7:21 am
    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,

    145. The passage suggests which of the following about the majority of United States manufacturing industries
    before the high-technology development era of the 1980's?
    (A) They lost many of their most innovative personnel to small entrepreneurial enterprises. No where mentioned
    (B) They experienced a major decline in profits during the 1960's and 1970's. No where mentioned
    (C) They could provide real economic benefits to the areas in which they were located.
    (D) They employed workers who had no specialized skills. too strong
    (E) They actively interfered with local entrepreneurial ventures. not mentioned

    i hope it clears ur doubt

    jangojess Master | Next Rank: 500 Posts Default Avatar
    Joined
    02 Jul 2007
    Posted:
    175 messages
    Followed by:
    1 members
    Thanked:
    15 times
    Post Fri Sep 14, 2007 6:06 am
    the term zero-sum is correct...its actually the sum of advantages/profits/loss of all the towns...so if one town triumphed/profited A$ then it has resulted in a tragedy/loss of another town by A$...resulting in total sum as ZERO for both towns....

    Now by this process one town is getting benefited too....which is meant in C

    Thanked by: nirupshetty
    archileo73 Newbie | Next Rank: 10 Posts Default Avatar
    Joined
    17 Apr 2007
    Posted:
    3 messages
    Post Thu Sep 20, 2007 10:08 am
    The MAJORITY of United States manufacturing industries could provide real economic benefits to the areas in which they were located but not the areas they are not located. The strategy of attracting manufacturing industries was nationally zero sum but locally beneficial!

    Best Conversation Starters

    1 Vincen 180 topics
    2 lheiannie07 61 topics
    3 Roland2rule 61 topics
    4 ardz24 40 topics
    5 VJesus12 14 topics
    See More Top Beat The GMAT Members...

    Most Active Experts

    1 image description Brent@GMATPrepNow

    GMAT Prep Now Teacher

    160 posts
    2 image description Rich.C@EMPOWERgma...

    EMPOWERgmat

    102 posts
    3 image description GMATGuruNY

    The Princeton Review Teacher

    99 posts
    4 image description Jay@ManhattanReview

    Manhattan Review

    86 posts
    5 image description Matt@VeritasPrep

    Veritas Prep

    80 posts
    See More Top Beat The GMAT Experts