Bunuel wrote:
An IT company is planning to open a new office in the large industrial city of Nizhny Novgorod, Russia. The IT industry has, in recent years, become one of the most important industries in Nizhny Novgorod and provides the majority of high-paying jobs for residents. At the same time, the city is currently undergoing a minor economic downturn, and a number of its residents are out of work. Additionally, the IT industry has been struggling to remain strong in Nizhny Novgorod, and many of the original IT businesses, which have traditionally been the city’s most successful businesses, are failing. The IT company that plans to open a
new office, however, is confident it will be highly successful.
Given the passage above, which of the following best explains the discrepancy between the current economic situation in Nizhny Novgorod and the IT company’s confidence in its likely success?
(A) The IT company, unlike most of the original IT companies, is at the cutting edge of the IT industry and can keep its costs low.
(B) The IT company is acquiring the building of a failed IT company, so it will not have to spend funds to build a new office.
(C) The IT company is expected to bring much-needed jobs to Nizhny Novgorod, and many residents are excited about the new office.
(D) The IT company is not opening the new office within Nizhny Novgorod, instead locating the office where there is less industrial scenery.
(E) The IT company has had to take out considerable loans for the construction and maintenance of the office building.
OFFICIAL EXPLANATION
Overview: Question describes a situation in which an IT company is planning to open a new office in the city of Nizhny Novgorod, Russia, where IT is a major industry. The passage notes, however, that the economy has been in a state of weakness and that many residents are out of work. The IT industry is also weak, and a number of IT businesses that have been in the city for some time are now closing. However, the company opening the new office is confident of its success. The question asks the student to consider an explanation for why this is. To select the correct answer, the student needs to consider the details in the passage, reflecting what might set the one IT company above the rest, even during an economic downturn.
The Correct Answer:A Answer choice (A) is the only answer choice that provides a sufficient explanation for why the IT company can be so confident of its success in spite of a struggling economy: its technology is up to date (and thus will be in demand), and it is able to keep its costs low (thus offsetting the economic weakness). Answer choice (A) also notes that the other IT businesses in Nizhny Novgorod have not kept their technology up to date, so this places the company with the new office at a distinct competitive advantage. Answer choice (A) is the correct answer.
The Incorrect Answers:B Although purchasing an existing building instead of building a new one creates an immediate financial advantage, it does not explain why the IT company with the new office can succeed where its competitors cannot. Answer choice (B) is incorrect due to insufficient details to explain the discrepancy.
C The employment opportunities offered by the IT company with the new office has some potential to explain its expected success. However, it is not clear from the answer choice how the company will pay new hires, that is, how the company can afford new hires. This answer choice alone does not provide a sufficient reason for the company’s confidence in its financial success. Answer choice (C) cannot be correct.
D The presence of industrial scenery does not clearly contribute to a lack of business success, so answer choice (D) does not explain why the IT company with the new office can be confident of its success. Were the answer choice to include some information about why the industrial scenery has hurt other IT businesses and how it has added to their failure, this might be a good possibility. As it is, though, answer choice (D) cannot be correct.
E Far from explaining the reason for the IT company’s confidence, answer choice (E) raises questions about the potential for its success by claiming that the company will immediately have large debts to pay off. Answer choice (E) is not correct and can be eliminated immediately.
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