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GMAT OG 2019 In recent years, Western business

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GMAT OG 2019 In recent years, Western business

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In recent years, Western business managers have
been heeding the exhortations of business journalists
and academics to move their companies toward
long‐term, collaborative “strategic partnerships” with
(5) their external business partners (e.g., suppliers).
The experts’ advice comes as a natural reaction to
numerous studies conducted during the past decade
that compared Japanese production and supply
practices with those of the rest of the world. The
(10) link between the success of a certain well-known
Japanese automaker and its effective management of
its suppliers, for example, has led to an unquestioning
belief within Western management circles in the value
of strategic partnerships. Indeed, in the automobile
(15) sector all three United States manufacturers and
most of their European competitors have launched
programs to reduce their total number of suppliers
and move toward having strategic partnerships with
a few.
(20)  However, new research concerning supplier
relationships in various industries demonstrates that
the widespread assumption of Western managers
and business consultants that Japanese firms
manage their suppliers primarily through strategic
(25) partnerships is unjustified. Not only do Japanese
firms appear to conduct a far smaller proportion of
their business through strategic partnerships than
is commonly believed, but they also make extensive
use of “market-exchange” relationships, in which
(30) either party can turn to the marketplace and shift to
different business partners at will, a practice usually
associated with Western manufacturers.

Q426) The passage is primarily concerned with
A) examining economic factors that may have contributed to the success of certain Japanese companies
B) discussing the relative merits of strategic partnerships as compared with those of market exchange relationships
C) challenging the validity of a widely held assumption about how Japanese firms operate
D) explaining why Western companies have been slow to adopt a particular practice favored by Japanese companies
E) pointing out certain differences between Japanese and Western supplier relationships

Q427) According to the passage, the advice referred to in line 6 was a response to which of the following?
A) A recent decrease in the number of available suppliers within the United States automobile industry
B) A debate within Western management circles during the past decade regarding the value of strategic partnerships
C) The success of certain European automobile manufacturers that have adopted strategic partnerships
D) An increase in demand over the past decade for automobiles made by Western manufacturers
E) Research comparing Japanese business practices with those of other nations

Q428) The author mentions “the success of a certain well-known Japanese automaker” in lines 10-11, most probably in order to
A) demonstrate some of the possible reasons for the success of a certain business practice
B) cite a specific case that has convinced Western business experts of the value of a certain business practice
C) describe specific steps taken by Western automakers that have enabled them to compete more successfully in a global market
D) introduce a paradox about the effect of a certain business practice in Japan
E) indicate the need for Western managers to change their relationships with their external business partners

Q429) Which of the following is cited in the passage as evidence supporting the author’s claim about what the new research referred to in line 20 demonstrates?
A) The belief within Western management circles regarding the extent to which Japanese firms rely on strategic partnerships
B) The surprising number of European and United States businesses that have strategic partnerships with their suppliers
C) The response of Western automobile manufacturers to the advice that they adopt strategic partnerships with their suppliers
D) The prevalence of “market‐exchange” relationships between Japanese firms and their suppliers
E) The success of a particular Japanese automobile manufacturer that favors strategic partnerships with its suppliers

Q426: C
Q427: E
Q428: B
Q429: D

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