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

If there are numerous companies in underdeveloped countries who can produce vaccine, it is good for DTI Biotech to pick and choose among those who uses labor at cheaper cost. This is actually strengthening the argument. Hence, A is wrong.

It is not relevant to the argument whether all of DTI's operations are handled in-house by own staff or outside. Hence, B is wrong.

C weakens the argument because if the partner manufactures the vaccine independently, then DTI will loose on the market share and profits from Fluvax.

The whole purpose of tying up with partner in underdeveloped countries is that labor costs are cheaper there. If the partner would have attracted expert staff from DTI, then the purpose would be defeated. D is actually a strengthener.

It does not matter to DTI whether its competitor is also looking for a partner in underdeveloped country targeting a different disease. E is out.

Answer is C.

DTI Biotechnology Inc. --- produces --> Fluvax
Current manufacturing --> Developed country --> Costly --> unaffordable for many underdeveloped countries
Extend market --> search for partners in underdeveloped countries --> manufacture on DTI's behalf --> cheaper --> local markets

Conclusion - DTI wants to extend business to underdeveloped countries by using local manufacturing partners

Assumptions
1. No copying of vaccine making process is possible by the local manufacturer and it would honestly manufacture Fluvax for the local market
2. DTI does not want to set up a plant in an underdeveloped country

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
--> Any vaccine other than Fluvax is out of scope

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
--> Not relevant

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 might cause concern for DTI. The local manufacturers can take away business expected by DTI from underdeveloped countries and hence DTI would get very little benefit from the initial partnership

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 shouldn't be a problem in case DTI decided to promote vaccine production in an underdeveloped country.

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

IMHO Option C

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.

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.

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 as it does not weaken our conclusion.

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff. Incorrect as it does not weaken our conclusion.


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. Voila !! If the partner at some point may manufacture independently then it hurts the part of the argument written in bold.

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 as it does not weaken our conclusion.

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 as it does not weaken our conclusion.

IMO Option C

Imo E

DTI is looking for partners in underdeveloped countries so that these partners can hire hire cheap labor and the manufacturing cost be reduced, making the cost of vaccine affordable for the consumers.
We have to weaken the implementation of this plan.

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
It gives more reason that DTI will get a partner in underdeveloped countries.

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
Irrelevant. Will it impact any of the partner's position? we don't know.

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.
As long as the the company is getting a partner at present, the plan is a success.

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.
Do we need to hire a staff from DTT for the partner to manufacture the vaccine? We don't know. In fact the original objective was to hire labors from the under developed countries themselves. This statement is strengthening 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.
Since DTI has a competitor for some other vaccine. The partners may choose Gardisol for their profit. This statement weakens the success of the plan.

Answer C.

"Which of the following, if true, most seriously raises doubt about the success of the plan of the management of DTI i?"

We are looking for a proposition that raises doubt about the success of the plan of management of DTI.

What are they planning to do? => They are looking for a partner with facilities in underdevelopped country to manufacture vaccine on their behalf for underdevelopped market.
But since the labor cost is the one in cause here, the labor cost in underdevelopped country needs to be qualified for the task. Therefore a transfer of knowledge will be needed with the risks assiociated to that.

So Answer C for me.

Answer: C

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 rather strengthens. DTI can collaborate with these companies in underdeveloped countries to produce required vaccine thereby extending the market in underdeveloped countries.

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff. --> Incorrect. Who operates current operations is out of scope.

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 the partner starts manufacturing independently then DTI will be back to square one looking for another partner with DTI's market share taking a hit.

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. We do not know if partner requires expert staff from DTI or not. Out of scope.

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 or DTI, another vaccine are out of scope.

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?

Weakener required,,,

Any factor impinging on sales of the vaccines manufactured by Fluvax will serve to raise doubt about the success of the plan of the management of DTI Biotechnology Inc

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
It is a strengthener..If numerous companies available in underdeveloped countries, vaccine manufacture at cheaper costs easily possible

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
Hiring at lower labour costs in underdeveloped countries will enable replacement of DTI's own staff, and thus reduce overall labour costs..hence, vaccines can be manufactured at cheaper costs...again a strengthener !!

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.
A futuristic prediction..while there is a need to evaluate the success of the plan in present context..Hence, out of scope

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.
Partner not able to attract experts for manufacture of vaccines owing to low salaries will in turn mar the plans related to manufacturing vaccines at cheaper costs

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.
Role of competitor will mildly impact by hiring of labour at comparatively higher labor costs..No data presented in the stimulus..hence, may or may not lead to success of the plan

(D) is the correct option
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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. ELIMINATE

B. 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 otherwise

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.

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). ELIMINATE

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.

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. ANSWER

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. ELIMINATE

Answer - D

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.This is supporting the conclusion.OUT

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.Not creating any doubt .OUT

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

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.OUT

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 .OUT

OA:C

The plan of the company is : 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.

What could makes this plan not successful

A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
the fact of existing other companies developping the vaccine in other places is irrelevant to evaluate the successfulness of the plan of the company, Wrong answer
B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
From this info, nothing could be said whether it the operations cannot be performed from another location, ireelavant,
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 the partner manufactures independently, this strenghten the conclusion, Wrong answer
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 is the correct answer, because if all the prerequisites are Ok, if the company, does not have the human resources qualified to perform the vaccine production, its plan to transporting the plants into an underdeveloped country, could make the plan unseccessful , and excatly that this answer choice is telling, that in underdeveloped country, the salaries 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.
anoher competitor searching for a partner in the same location as the company producing the vaccines is completely irrelevant to evaluate the plan, Wrong 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.
out of scope

B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
Does not raise any doubt

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 weakens the staement

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.
Does not raise any doubt

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.
Does not raise any doubt

Answer is C

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.

The answer is C

Official Explanation is pinned as BEST Reply HERE.
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I presume, you did not realise the difference between vaccine developers and vaccine manufacturers.