Some economists believe that the United States can be utilized as a

Question

Some economists believe that the United States can be utilized as a “land bridge” for the shipment of containerized cargo between Europe and the Far East. Under the land-bridge concept, containerized freight traveling between Europe Line and the Far East would be shipped by ocean carrier to the United States East Coast, unloaded and placed on special railway flatcars, and shipped via railroad to a West Coast port. At this port, the containers would then be loaded on ships bound to a Far East port of entry. This procedure would be reversed for material traveling in the opposite direction. Thus, a land transportation system would be substituted for marine transportation during part of the movement of goods between Europe and the Far East.

If a land-bridge system of shipment were deemed feasible and competitive with alternative methods, it would open a completely new market for both United States steamship lines and railroads. At present, foreign lines carry all Far East-Europe freight. American carriers get none of this trade, and the all-water route excludes the railroads.

The system established by a land bridge could also serve to handle goods now being shipped between the United States West Coast and Europe, or goods shipped between the Far East and the United States Gulf and East Coasts. Currently, there are 20 foreign lines carrying West Coast freight to Europe via the Panama Canal, but not one United States line. Thus, in addition to the land bridge getting this new business for the railroads, it also gives the United States East Coast ships an opportunity to compete for this trade.

While this method of shipment will probably not add to the labor requirements at East and West Coast piers, it does have the potential of absorbing some of the jobs that the containerization of current cargo has eliminated or could eliminate. Thus, the possibility of creating new jobs for longshoremen is not an expected benefit of such a system, but it will most certainly create other labor requirements. The land-bridge concept has the potential of offering new job openings for United States railway workers and seamen. In addition, there would be expansion of labor requirements for people in the shipbuilding and container manufacturing business.

By making United States rail transportation an export service, the land-bridge system would have a favorable effect on our balance of payments. Such a system also has the potential of relieving the United States government of part of the burden it now bears in the form of subsidies to the shipping industry. The federal government subsidizes the construction and operation of scheduled vessels. Some 52 percent of the income from their operation comes from the government in that these ships are used for all our military and other government-related export shipments. The land-bridge requirement for scheduled sailings could effect a shift from the use of these scheduled lines for shipment of government goods to commercial cargo of the land bridge. This would then open some of the lucrative government business to the unscheduled, unsubsidized lines.    1 
 1. According to the passage, if a land-bridge system were feasible, it would

(A) create employment in the bridge-building industry
(B) decrease the amount of air freight
(C) create a new market for steamship lines and railroads
(D) make Amerian railroads more efficient
(E) increase foreign trade

2 
 2. The author implies that which of the following would be provided employment by the development of a land bridge?

I. Dock workers
II. U.S. railway workers
III. U.S. sailors

(A) I only
(B) III only
(C) I and II only
(D) II and III only
(E) I, II, and III

3 
 3. Which of the following might least benefit from a land bridge?

(A) U.S. railway workers.
(B) U.S. sailors.
(C) U.S. scheduled shipping lines.
(D) U.S. unscheduled shipping lines.
(E) U.S. government.

4 
 4. According to the passage, the major alternative to a U.S. land bridge is the

(A) Panama Canal
(B) Suez Canal
(C) air-freight system
(D) all-land route
(E) military transport system

5 
 5. The passage states that a land bridge would improve United States

(A) foreign trade
(B) balance of payments
(C) railroad industry
(D) international relations
(E) gold reserves

6 
 6. A land bridge would not

(A) aid U.S. steamship lines
(B) handle goods shipped between Europe and the Far East
(C) create new jobs for dock workers
(D) supply new business for U.S. railroads
(E) create business for unscheduled shipping lines

RC Butler 2022  -  Practice Two RC Passages Everyday.   
Passage # 64 Date: 11-Feb-2022
 This question is a part of RC Butler 2022 .  Click here for Details

Source: Barron's GMAT

Kukee · Answer

The passage mainly advocates that if a land-bridge system of shipment were deemed feasible and competitive with alternative methods, it would open a completely new market for both United States steamship lines and railroads

Q 1. As per this option C is the correct answer.

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Kukee · Answer

As per the last paragraph of the passage,the land-bridge requirement for scheduled sailings could effect a shift from the use of these scheduled lines for shipment of government goods to commercial cargo of the land bridge.

Q 3. Since it will be an alternative to scheduled lines,hence it will most likely not benefit scheduled shipping lines.
Thus,C is correct.

Hope it helps. Do send KUDOS.

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Prob2303 · Answer

Hello Sajjad,

Can I get a brief summary of the passage and the OE for Q3 and Q4?

Sajjad1994 · Answer

Explanation

3. Which of the following might least benefit from a land bridge?

Explanation

The passage discusses the potential benefits of a land-bridge system for transporting containerized cargo between Europe and the Far East via the United States. Let's evaluate the potential impact on each option:

(A)  A land-bridge system would likely benefit U.S. railway workers, as it introduces a new market for rail transportation, creating job opportunities.

(B)  A land-bridge system could benefit U.S. sailors, as it opens up opportunities for U.S. steamship lines to compete for Far East-Europe freight.

(C)  A land-bridge system might have a mixed impact on scheduled shipping lines. On one hand, it could lead to a shift in government-related export shipments from scheduled lines to the land bridge, potentially reducing government subsidies. On the other hand, it opens up new commercial cargo opportunities.

(D)  U.S. unscheduled shipping lines could benefit from the land-bridge system, gaining access to lucrative government business that might shift from scheduled lines.

(E)  The land-bridge system has the potential to relieve the U.S. government of part of the burden of subsidies to the shipping industry. However, it might also shift some of the lucrative government business to unscheduled, unsubsidized lines.

Answer: C

Sajjad1994 · Answer

Explanation

4. According to the passage, the major alternative to a U.S. land bridge is the

Explanation

The passage mentions that if the land-bridge system were deemed feasible and competitive with alternative methods, it would open a new market for U.S. steamship lines and railroads. Currently, foreign lines carry all Far East-Europe freight through an "all-water route," and the passage specifically notes that the land-bridge system would substitute land transportation for marine transportation during part of the movement of goods. This suggests that the major alternative being referred to is the all-water route, which includes the Panama Canal as a significant component for transporting goods between Europe and the Far East. Therefore, the correct answer is  (A)  Panama Canal.

Answer: A

Manik02 · Answer

I DON'T THINK THE ANSWER OF Q5 WOULD BE BALANCE OF PAYMENTS, AS IT ISN'T MENTIONED ANYWHERE IN THE PASSAGE ACCORDING TO ME IT WOULD BE RAILROAD INDUSTRY AS MENTIONED IN PARA 3. PLEASE REVIEW!

DmitryFarberMPrep · Answer

I can't fully endorse this passage. It's a bit quirky, and the use of English is not up to GMAT standards. For instance, I'm not sure the GMAT would just refer to a "land bridge" in the questions as if it were an actual bridge, when what's actually under discussion is the use of the US as a form of bridge. However, there is a reason to choose B over C. Notice that the question asks what would be IMPROVED by the use of a land bridge. Paragraph 3 tells us that US railroads would get new business, but it doesn't actually tell us that the railroad industry would be improved. (If you think getting more money and improving are the same thing, take a look at the average billionaire.

) Meanwhile, paragraph 5 states explicity that "the land-bridge system would have a favorable effect on our balance of payments." So a favorable effect on the exact term in question has been mentioned.

Some economists believe that the United States can be utilized as a

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Some economists believe that the United States can be utilized as a

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