Find all School-related info fast with the new School-Specific MBA Forum

It is currently 26 Jul 2016, 14:07
GMAT Club Tests

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Cross-border collaboration is experiencing a modest

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Director
Director
avatar
Joined: 21 Dec 2009
Posts: 591
Concentration: Entrepreneurship, Finance
Followers: 18

Kudos [?]: 597 [0], given: 20

Cross-border collaboration is experiencing a modest [#permalink]

Show Tags

New post 07 Aug 2010, 07:21
7
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  85% (hard)

Question Stats:

49% (02:38) correct 51% (02:17) wrong based on 377 sessions

HideShow timer Statistics

Cross-border collaboration is experiencing a modest renaissance among smaller international oil cartels based in South America, even if business from a joint venture by several cartels is less brisk and profitable than by a monopoly. One upside of international cooperation is that a combined effort may allow these cartels to jointly win government subsidies in overseas markets where they would not have been able to operate.

Which of the following statements by a South American cartel accountant best fits the situation of South American cartels as described in the passage above?

A. “We would rather earn better percentage of a modest profit than zero percent of a potentially larger profit.”

B. “Our management believes that it is in the best interests of investors that we earn only a percentage of total profits and risk only a percentage of possible losses rather than assuming the entire risk of loss.”

C. “We should cooperate and build goodwill, rather than turn customers against us with unsupervised competition.”

D. “We would prefer to have Middle Eastern cartels work with us here in South America rather than having to participate in joint ventures in their home countries.”

E. “We would rather use our full resources to penetrate a territory than receive lesser profits in joint ventures.”
[Reveal] Spoiler: OA

_________________

KUDOS me if you feel my contribution has helped you.

Director
Director
avatar
Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
Joined: 26 Nov 2009
Posts: 997
Location: Singapore
Followers: 19

Kudos [?]: 676 [0], given: 36

Re: Cross-border collaboration is experiencing a modest renaissa [#permalink]

Show Tags

New post 07 Aug 2010, 08:54
Straight A - "jointly win government subsidies" is the key. Its better to collaborate than be a looser - "where they would not have been able to operate."

A. “We would rather earn better percentage of a modest profit than zero percent of a potentially larger profit.”
_________________

Please press kudos if you like my post.

Manager
Manager
avatar
Joined: 07 Apr 2009
Posts: 158
Followers: 2

Kudos [?]: 71 [0], given: 5

Re: Cross-border collaboration is experiencing a modest renaissa [#permalink]

Show Tags

New post 08 Aug 2010, 00:56
A is good
SVP
SVP
avatar
Joined: 17 Feb 2010
Posts: 1559
Followers: 16

Kudos [?]: 472 [0], given: 6

Re: Cross-border collaboration is experiencing a modest renaissa [#permalink]

Show Tags

New post 08 Aug 2010, 14:54
can someone explain why D is incorrect here?
Manager
Manager
User avatar
Joined: 11 May 2010
Posts: 224
Followers: 3

Kudos [?]: 92 [0], given: 11

Re: Cross-border collaboration is experiencing a modest renaissa [#permalink]

Show Tags

New post 08 Aug 2010, 20:38
seekmba wrote:
can someone explain why D is incorrect here?


D is incorrect because it is not mentioned in the premise where the join venture will be, whether it'll be in the home base or in the other's country. The premise only focus on the profitability of the Join venture.

A is the Correct answer.
Senior Manager
Senior Manager
avatar
Joined: 14 Jun 2010
Posts: 333
Followers: 2

Kudos [?]: 20 [0], given: 7

Re: Cross-border collaboration is experiencing a modest renaissa [#permalink]

Show Tags

New post 23 Aug 2010, 05:20
A looks good :-)
Manager
Manager
User avatar
Joined: 28 Feb 2010
Posts: 176
WE 1: 3 (Mining Operations)
Followers: 6

Kudos [?]: 29 [0], given: 33

Re: Cross-border collaboration is experiencing a modest renaissa [#permalink]

Show Tags

New post 23 Aug 2010, 06:00
IMO A....
_________________

Regards,
Invincible...:)
"The way to succeed is to double your error rate."
"Most people who succeed in the face of seemingly impossible conditions are people who simply don't know how to quit."

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 01 Oct 2013
Posts: 8787
Followers: 770

Kudos [?]: 157 [0], given: 0

Premium Member
Re: Cross-border collaboration is experiencing a modest [#permalink]

Show Tags

New post 23 Aug 2015, 16:54
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Intern
Intern
avatar
Joined: 11 Jun 2015
Posts: 15
Followers: 0

Kudos [?]: 0 [0], given: 66

Re: Cross-border collaboration is experiencing a modest [#permalink]

Show Tags

New post 21 Oct 2015, 08:29
Can someone explain why B is incorrect?

Thanks much!
Manager
Manager
avatar
Joined: 09 Feb 2015
Posts: 127
GMAT 1: 200 Q0 V0
GPA: 2.8
Followers: 0

Kudos [?]: 9 [0], given: 108

Reviews Badge CAT Tests
Re: Cross-border collaboration is experiencing a modest [#permalink]

Show Tags

New post 05 Nov 2015, 05:57
angierch wrote:
Can someone explain why B is incorrect?

Thanks much!

" combined effort may allow these cartels to jointly win government subsidies in overseas markets where they would not have been able to operate."

the gist of the argument is make some profit by joint ventures than nothing at all.the above sentence clearly gives that clue.
Option A states that clearly.
whereas option B talks about investors and losses..according to the argument we have no information if they would incur losses.
If they cant operate there is no question of incurring losses in overseas market.
Hence in my opinion it is wrong.
Senior Manager
Senior Manager
User avatar
Status: Always try to face your worst fear because nothing GOOD comes easy. You must be UNCOMFORTABLE to get to your COMFORT ZONE
Joined: 15 Aug 2014
Posts: 335
Concentration: Marketing, Technology
GMAT 1: 570 Q44 V25
WE: Information Technology (Consulting)
Followers: 5

Kudos [?]: 3 [0], given: 405

GMAT ToolKit User Reviews Badge CAT Tests
Re: Cross-border collaboration is experiencing a modest [#permalink]

Show Tags

New post 11 Jul 2016, 22:44
gmatbull wrote:
Cross-border collaboration is experiencing a modest renaissance among smaller international oil cartels based in South America, even if business from a joint venture by several cartels is less brisk and profitable than by a monopoly. One upside of international cooperation is that a combined effort may allow these cartels to jointly win government subsidies in overseas markets where they would not have been able to operate.

Which of the following statements by a South American cartel accountant best fits the situation of South American cartels as described in the passage above?

A. “We would rather earn better percentage of a modest profit than zero percent of a potentially larger profit.”

B. “Our management believes that it is in the best interests of investors that we earn only a percentage of total profits and risk only a percentage of possible losses rather than assuming the entire risk of loss.”

C. “We should cooperate and build goodwill, rather than turn customers against us with unsupervised competition.”

D. “We would prefer to have Middle Eastern cartels work with us here in South America rather than having to participate in joint ventures in their home countries.”

E. “We would rather use our full resources to penetrate a territory than receive lesser profits in joint ventures.”


Can someone explain why 'B' is wrong.
_________________

The path is long, but self-surrender makes it short; the way is difficult, but perfect trust makes it easy.

"When you want to succeed as bad as you want to breathe, then you’ll be successful.” - Eric Thomas

Re: Cross-border collaboration is experiencing a modest   [#permalink] 11 Jul 2016, 22:44
    Similar topics Author Replies Last post
Similar
Topics:
2 Experts publish their posts in the topic Transnational cooperation among corporations is experiencing a modest Rilken 1 29 Aug 2014, 18:24
9 Transnational cooperation among corporations is experiencing a modest Rilken 3 29 Aug 2014, 18:20
5 No nation in the world has experienced as significant a spriya 19 14 Oct 2008, 10:05
10 Transnational cooperation among corporations is experiencing humtum0 12 14 Sep 2008, 19:55
No nation in the world has experienced as significant a ssandeepan 8 26 Jul 2008, 22:53
Display posts from previous: Sort by

Cross-border collaboration is experiencing a modest

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.