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

Question

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 ?

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!!!

V36-17

Bunuel · Answer

GMAT CLUB Official Explanation:

A. This option actually strengthens the plan of DTI, because DTI would be able to exploit the competition among the numerous manufacturers, possibly settling for a cheaper manufacturing cost.

B. The current strategy of staffing does not affect the success of DTI from partnering in underdeveloped countries.

C. Correct.  If a partner starts manufacturing independently, then DTI will not be able to extend its market in underdeveloped countries. The partner will then market Fluvax as its own product.

D. This option is an advantage for DTI because this statement assures that in order to capture new markets in underdeveloped countries, the current market of DTI will not be adversely affected by migration of expert DTI staff to the partner.

E. This option is irrelevant for DTI’s plan because Gardisol’s success has no bearing on the success of Fluvax since Gardisol is targeted at a different disease. If DTI were searching for a partner for manufacturing Gardisol then this option would be relevant.

Kinshook · Answer

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

Archit3110 · Answer

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

soudipsengupta · Answer

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

Dwiti88 · 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.
- 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

gmatophobia · Answer

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

acf840 · Answer

Out of all the options, I think option C is the correct one.

If the partner company start manufacturing the same vaccine, the chances of success of Fluvax in underdeveloped countries is reduced - weakening the argument

A: Out of scope, we are talking about DTI Company

B: It agrees to the argument that the company need the partners

D: The partner can hire local experts/ DTI Biotechnology can do something about it

E: The vaccine is different, no competition for Fluvax.

manish1708 · Answer

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.

Vatsal7794 · 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

Berdiyor · 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.

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

VerbalBot · Answer

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

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

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