GMAT Club World Cup 2022 (DAY 7): The vaccine Fluvax has been develope

Premise 1: 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.
Premise 2: However, as in other towns in developed countries, the labor costs at Vaccitown are pretty high, making the vaccine unaffordable for many underdeveloped countries.
DTI's Plan: 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?


Since there are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax, DTI will easily get a local partner to develop vaccines such as Fluvax at a much lower cost because of increased competition.
Incorrect


Even if currently all of DTI’s operations are handled in-house by DTI’s own staff, the same can be outsourced to a firm in underdevloped country.
Incorrect


This statement seriously raises doubt about the success of the plan of the management of DTI since instead of expanding market in underdeveloped countries, the company can lose the market to a lower cost manufacturing competitor.
Correct


The technologies can be transferred or processes taught without any expert staff getting employed in underdeveloped countries at lower salaries.
Incorrect


The statement seems irrelevant to the discussion since it is concerned with another vaccine.
Incorrect

IMO C

Correct answer : Choice B

Weaken question.

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax. - Wrong : this strengthens the argument.

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff. - Correct : If all DTI's operations are currently handled in house, then outsourcing of manufacturing will be done for the first time and hence is a weakener for sure.

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. - Wrong. The answer choice says "MAY" and not definitely. Second best choice in my opinion.

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. - Wrong : Indirectly strengthens the argument.

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. - Wrong : irrelevant

Answer is D
A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
Irrelevant
B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
Irrelevant
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.
This maybe will happen in the future, but it is not a immediate concern of the expansion
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. Correct. If this is the case, the project cannot even start.

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. Irrelevant

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. irrelevant

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.
correct ; there is a risk of independent mfg which can impact the success plan of the DTI

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. not correct because argument states that the management of DTI Biotechnology is searching for partners in underdeveloped countries

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. irrelevant

OPTION C is correct

IMO D


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.- does not mean the Fluvax cannot be outsourced to them.

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.- irrelevant.

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.- even if at some point they may become independent , does not mean at present the plan will not be successful

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. - This impacts the plan.If these countries cannot have expert staff, it does hampers their ability to produce fluvax .

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.- Irrelevant, no impact on the plan

to weaken the statement we have to prove that there is a disadvantage of manufacturing in under developed countries
A-like a strengthener
B-out of scope
C- disadvantage to go for the manufacturing in under developed countries so ans
D-Partner can't attract not telling the disadvantage
E- irrelevant

Select an option which raises doubt about the success of the plan of the management of DTI of Expanding in underdeveloped nations and selling in the local market at a cheaper price.

A. There are numerous companies in underdeveloped countries, that are capable of manufacturing vaccines such as Fluvax: The market is already occupied. Even after expansion to an underdeveloped nation, DTI may not be able to sell in the local market. Hold this option.

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff : I rrelavant. Reject

C. Manufacturing at a partner’s facility requires the transfer of knowledge to the partner that bears the risk that the partner at some point may manufacture independently. Out of Scope. Reject

D. The partner cannot attract any expert staff from DTI who are currently involved in the manufacturing of Fluvax, because the salaries in underdeveloped countries are much lower: Out of Scope. Reject

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: Out of Scope. Reject

Hence A is the correct answer

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. - irrelevant
B. Currently all of DTI’s operations are handled in-house by DTI’s own staff. - irrelevant
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.
I think this choices raises serious doubts about the success of the management's plan, since if their partner starts manufacturing independently with their know-how, the company will be at a serious loss.
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. Doesn't affect the argument
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. - irrelevant, since it talks about another disease

ANSWER B

Conclusion: DTI Biotechnology will be able to extend the market of Fluvax in underdeveloped countries by searching for partners in underdeveloped countries,

Premise 1: underdeveloped countries will be able to manufacture the vaccine on behalf of DTI at cheaper costs for the local market

Premise 2: Fluvax has been developed in Vaccitown; the labor costs at Vaccitown are pretty high

We want to find out which weakens the conclusion

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax. This is more of an assumption, does not weaken the argument

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff. CORRECT, this means that labours don't really do the manufacturing and hence the underdeveloped countries will not be able to make the vaccine

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. If this were the case then the company will never be able to outsource anything and will never be able to manufacture at lower costs. This does not weaken the argument, more like it destroys the argument, and this is too extreme and not needed here

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. The argument mentions that the company wants to manufacture the vaccine at cheaper costs, maybe the overall costs will still be lower even if they pay more to the expert staff person

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. Out of scope. Competitors are irrelevant to the conclusion

IMO Option C is the answer.
Option C best raises doubt about the long term success of the plan.

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.: Incorrect
This option is a trap. The plan is to find partners in underdeveloped countries, who can manufacture the vaccine on behalf of DTI at cheaper costs for the local market. This option doesn't even talk about the plan.


B. Currently all of DTI’s operations are handled in-house by DTI’s own staff. : Incorrect
DTI's operations are irrelevant here. Doesn't talk about the plan.

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.: Correct
It directly impacts/doubts on the success of the plan.

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.: Incorrect
This can be a reason for plan to work as the partners will have to manage the development without expert staff from DTI.

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.: Incorrect
Competitor's plan of action is irrelevant here.

Ans: C

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
INCORRECT This may be the case, but this is outside the scope of the argument. Even with similar local vaccines present DTI can still look to expand their market in underdeveloped offshore countries, and for that they can well look for joining partnership and be successful in its goals.

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
INCORRECT This is irrelevant to the argument. DTI may or may not have in-house staff and still look to expand in underdeveloped countries with Fluvax and be successful in its goals

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.
CORRECT. If to successfully operate, at a partner’s facility requires transfer of knowledge to the partner there is definitely risk that the partner at some point may manufacture independently and in that case the goal of DTI to expand their market share in the partner's country will be hindered.

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.
INCORRECT. Even so, DTI can successfully extend their market in partner's country by locally hiring staff.

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.
INCORRECT. This is irrelevant to the argument. It does not matter what a competitor of DTI does for or another vaccine called Gardisol targeted at a different disease

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.
-This is out of scope. As having numerous underdeveloped countries does not have any direct relation with the plan's success
B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
-This is irrelevant as this is not weakening the argument. Incorrect option
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.
This is the correct choice. As DTI wants to spread the market of Fluvax and looking for partners to achieve it due to the statement mentioned here DTI might loose the monopoly it has now on the vaccine.This will definitely make the plan unsuccessful.
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.
This could be the weakener but not the best option here.Knowledge can be transferred to associates at the underdeveloped nation for successful execution
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.
-This option is out of scope.There is no direct relation with the argument here

Goal : To extend the market of Fluvax in underdeveloped countries

Plan: Manufacture the vaccine on behalf of DTI at cheaper costs for the local market

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.

I don't suppose that this is an issue. We know that they are capable of manufacturing. Are they manufacturing, or will the vaccine be cheaper - we dont know. Hence we can eliminate this option.

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.

We know that the the vaccine is manufactured at the company’s own facilities at Vaccitown located in a developed country. Hence this option doesn't state anything new. Hence we can eliminate this option.

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.

This option mildly weakens the plan -
We want the partner to manufacture the vaccine "on behalf of DTI". Hence if they start manufacturing independently then, it would weaken the plan.

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.

The word "expert staff" throws me off, do we need an expert staff to be involved in manufacturing of Fluvax at the partner facilities. Hence we can eliminate this

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.

This doesn't weaken the plan as the competitor is targeting a different disease.

IMO C

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax. - INCORRECT

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.- INCORRECT

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. - INCORRECT

A. B and E are easy eliminations - they are scenarios that do not have much affect on the plan.

C and D are close competitors

Conclusion: 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.

Given: in other towns in developed countries, the labor costs at Vaccitown are pretty high, making the vaccine unaffordable for many underdeveloped countries.

Negation:
C - Manufacturing at a partner’s facility does not requires transfer of knowledge to the partner that bears the risk that the partner at some point may manufacture independently. -> no effect
D - The partner can attract any expert staff from DTI who are currently involved in manufacturing of Fluvax, even though the salaries in underdeveloped countries are much lower. -> Strengthens

Ans - D

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.
It clearly weakens the plans of DTI Biotechnology. If the numerous companies are capable of manufacturing Fluvax than they may not be interested in entering into partnerships with DTI Biotechnology. Correct

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
Irrelevant
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.
This may weaken the plan of DTI Biotechnology, but the leakage of vaccine knowledge can happen even if staff of DTI Biotechnology join other companies in the same field. Incorrect
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.
Irrelevant
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. Not affecting the plans of DTI Biotechnology. Incorrect

Answer:A

Conclusion: In order to extend the market of the vaccine, DTI requires partners in underdeveloped countries, who can manufacture the vaccine on behalf of DTI at cheaper costs for the local market.
Evidence: The current labour cost in the manufacturing location is high, making the vaccine unaffordable for many underdeveloped countries.
Assumption: In success of the plan, it is assumed that low cost of labour will help them extend their market. However any answer choice that can identify that the company will not be able to ultimately extend their market will weaken the argument.

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.

They can produce vaccines such as Fluvax but their effectiveness might lack. This can create market for Fluvax.

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.

Not relevant to the argument.

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.

If at some point the partner starts to manufacture the vaccine independently then the market of the DTI would be lost. Hence the plan would not succeed. Hence this is correct.

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.

This strengthens the argument.

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.

Not relevant to the argument.

So answer choice (C) IMO