Get Ready to Rumble: GMAT RC Start to Finish - Part 4
Were almost done with our full review of a GMATPrep RC passage and all of its associated questions!
In Part 1, we deconstructed the entire passage and answered an Authors Purpose, or Why, question. In part 2, we examined two General, or big picture, questions. In part 3, we took a look at an Inference question.
Pull up Part 1 so that you have the passage text in front of you. Ready? Give yourself about 1.5 minutes to answer this problem:
The passage suggests that modern multinationals differ from early chartered trading companies in that(A) the top managers of modern multinationals own stock in their own companies rather than simply receiving a salary
(B) modern multinationals depend on a system of capitalist international trade rather than on less modern trading systems
(C) modern multinationals have operations in a number of different foreign countries rather than merely in one or two
(D) the operations of modern multinationals are highly profitable despite the more stringent environmental and safety regulations of modern governments
(E) the overseas operations of modern multinationals are not governed by the national interests of their home countries
This is also an Inference question, signaled by the word suggests in the question stem. The three most common words that signal an Inference question are infer, imply, or suggest (or some variation thereof).
Whenever possible on Specific questions, return to the passage and try to answer the question in your own words before you review the answer choices. Where does the passage talk about differences between MMCs and the early trading companies?
The first paragraph doesnt introduce the older companies until the end, and even then, it only talks about what was assumed to have been true, not what this author actually thinks is true.
The second paragraph makes the case that the early companies are like MMCs. The third paragraph is about the differences.
The early trading companies did differ strikingly from modern multinationals in many respects. They depended heavily on the national governments of their home countries and thus characteristically acted abroad to promote national interests. Their top managers were typically owners with a substantial minority share, whereas senior managers holdings in modern multinationals are usually insignificant. They operated in a preindustrial world, grafting a system of capitalist international trade onto a premodern system of artisan and peasant production. Despite these differences, however, early trading companies organized effectively in remarkably modern ways and merit further study as analogues of more modern structures."
The points mentioned are points of difference. If the early companies did depend on their home governments and promoted national interests, then this suggests that MMCs do not. This is one possible answer to the question.
If managers of the early companies generally owned substantial shares, then managers of MMCs generally do not. Note that this last fact is actually stated outright in the passageso it is not the correct answer, because the passage must merely suggest whatever the correct answer says.
If early companies operated in a preindustrial world, then MMCs operate in an industrial (or possibly post-industrial) world.
Check the answers for something about reliance on governments.
(A) the top managers of modern multinationals own stock in their own companies rather than simply receiving a salary
The passage indicates that early managers had stakes and that managers of MMCs have stakes in their companies; the difference centers around the size of those stakes. Eliminate (A).
(B) modern multinationals depend on a system of capitalist international trade rather than on less modern trading systems
The passage indicates that the early companies grafted a system of capitalist international trade onto a premodern systemso they were also using this capitalist system. Eliminate (B).
(C) modern multinationals have operations in a number of different foreign countries rather than merely in one or two
Paragraph three doesnt address the number of countries. If you remember, though, that paragraph two talked about the early companies having extensive international trading activities, then youll know this choice is also wrong. If not, either check paragraph two now, or set this answer aside and come back to check later. Eliminate (C).
(D) the operations of modern multinationals are highly profitable despite the more stringent environmental and safety regulations of modern governments
The passage doesn't mention discuss environmental or safety regulations either in the past or now. Eliminate (D).
(E) the overseas operations of modern multinationals are not governed by the national interests of their home countries
Bingo! This is exactly what we said about the first statement in paragraph three: if the fact that the early companies depended heavily on their home governments and acted in the national interest is cited as a difference between the two eras, then the later MMCs do not depend as heavily on their home governments, nor do they act as much in the governments interest.
The correct answer is (E).
Key Takeaways for Reading Comprehension
(1) Overall, give yourself about 2 to 3 minutes to read a passage and map out the main ideas and contrasts. Dont get sucked into annoying detail; youll come back to that detail later if you get asked a question about it.
(2) Passages are typically accompanied by 3 or 4 questions. You will typically be given either 0 or 1 General question. This question will either directly ask you for the main idea or require you to know the main idea in order to answer the question correctly. If youve understood the main messages of the passage, you shouldnt need a ton of time to answer this question; give yourself about 45 to 60 seconds.
(3) The remaining questions will be Specific questions of some type. The three most common types are Detail questions (that ask you find some detail in the passage), Inference questions (that ask you to deduce something that must be true according to the passage), and Authors Purpose questions (that ask you why the author mentioned a certain piece of information). Its important to be able to recognize the three different question types and understand the goals for each type. You'll also need a little longer to answer these, about 1 to 1.5 minutes on average.
* GMATPrep questions courtesy of the Graduate Management Admissions Council. Usage of this question does not imply endorsement by GMAC.