Bunuel wrote:
The vaccine Fluvax has been developed by the company DTI Biotechnology Inc. Currently the vaccine is manufactured at the company’s own facilities at Vaccitown located in a developed country. However, as in other towns in developed countries, the labor costs at Vaccitown are pretty high, making the vaccine unaffordable for many underdeveloped countries. In order to extend the market of Fluvax in underdeveloped countries, the management of DTI Biotechnology is searching for partners in underdeveloped countries, who can manufacture the vaccine on behalf of DTI at cheaper costs for the local market.
Which of the following, if true, most seriously raises doubt about the success of the plan of the management of DTI i?
A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
C. Manufacturing at a partner’s facility requires transfer of knowledge to the partner that bears the risk that the partner at some point may manufacture independently.
D. The partner cannot attract any expert staff from DTI who are currently involved in manufacturing of Fluvax, because the salaries in underdeveloped countries are much lower.
E. A competitor of DTI for another vaccine called Gardisol targeted at a different disease, is also searching for partners in underdeveloped countries to capture the market of Gardisol.
Thank you
sayantanc2k for the question!!!
Fluvax, being developed in developed countries with expensive labor, cannot be made available due to price in other countries. So company is searching for partners in other countries who can manufacture on behalf of DTI in those countries using the cheap labor. What could make their plan not succeed?
Let us examine the options:
A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
Actually strengthens the point, more companies means more options means easier to find. ELIMINATEB. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
Ok, just some information that in no way raises doubts or otherwiseC. Manufacturing at a partner’s facility requires transfer of knowledge to the partner that bears the risk that the partner at some point may manufacture independently.
Yes, seems plausible but their plan is to find partners and have them develop the vaccine, not worrying about partners stealing their idea and building for themselves. Their plan is present, this is future, and that too, possible future (indicated by may). ELIMINATED. The partner cannot attract any expert staff from DTI who are currently involved in manufacturing of Fluvax, because the salaries in underdeveloped countries are much lower.
YES! DTI know how to do it, if partner cannot hire from them due to wage issues, they wont be able to manufacture the vaccine thus plan will fail. ANSWERE. A competitor of DTI for another vaccine called Gardisol targeted at a different disease, is also searching for partners in underdeveloped countries to capture the market of Gardisol.
Irrelevant. ELIMINATEAnswer - D