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Transnational cooperation among corporations is experiencing a model

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Transnational cooperation among corporations is experiencing a model  [#permalink]

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New post Updated on: 09 Oct 2018, 08:05
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  45% (medium)

Question Stats:

65% (01:28) correct 35% (01:35) wrong based on 510 sessions

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Transnational cooperation among corporations is experiencing a model renaissance among United States firms, even though projects undertaken by two or more corporations under a collaborative agreement are less profitable than projects undertaken by a single corporation. The advantage of transnational cooperation is that such joint international projects may allow United States firms to win foreign contracts that they would not otherwise be able to win.

Which of the following statements by a United States corporate officer best fits the situation of United States firms as described in the passage above?


(A) “We would rather make only a share of the profit and also risk only a share of a possible loss than run the full risk of a loss.”

(B) “We would rather make a share of a relatively modest profit than end up making none of a potentially much bigger profit.”

(C) “We would rather cooperate and build good will than poison the business climate by all-out competition.”

(D) “We would rather have foreign corporations join us in American projects than join them in projects in their home countries.”

(E) “We would rather win a contract with a truly competitive bid of our own than get involved in less profitable collaborative agreements.”

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Originally posted by carcass on 22 Jan 2017, 12:23.
Last edited by Bunuel on 09 Oct 2018, 08:05, edited 1 time in total.
Renamed the topic and edited the question.
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Re: Transnational cooperation among corporations is experiencing a model  [#permalink]

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New post 22 Jan 2017, 20:29
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Transnational cooperation --> Disadvantage: joint projects less profitable than independently handed projects. Advantage: Win contracts that they wouldn't have won without forming a cooperation.

Question tests us on similar reasoning.

(A) “We would rather make only a share of the profit and also risk only a share of a possible loss than run the full risk of a loss.” - Incorrect. Argument does not provide info about loss.

(B) “We would rather make a share of a relatively modest profit than end up making none of a potentially much bigger profit.” - Correct.

(C) “We would rather cooperate and build good will than poison the business climate by all-out competition.” - Incorrect. 'Poison the business climate'? The tone of the argument is not too harsh.

(D) “We would rather have foreign corporations join us in American projects than join them in projects in their home countries.” - Incorrect. Out of scope.

(E) “We would rather win a contract with a truly competitive bid of our own than get involved in less profitable collaborative agreements.” - Incorrect. Opposite to what is stated in the argument.

Answer: B
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Re: Transnational cooperation among corporations is experiencing a model  [#permalink]

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New post 24 Jan 2017, 20:29
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Let us simplify the question -

Transnational cooperations are -
1. less profitable than if the company bids alone
2. but more likely to win projects than if the company bids alone

and they are growing in popularity.

So, the Corporate officer opts for something that is less profitable but more likely to win projects than if the company bids alone.

Which option closely states this? Option B.

A - Incorrect.
Note that the argument talks about winning bids, not about losses. While option A may very well be true, we cannot infer this from the argument.
Also, failure to win transnational contracts need not necessarily lead to "full risk of loss".

B - correct answer.
we know that such agreements are "less profitable" than bidding alone. But bidding by the company without such agreements carries the risk of not winning the contracts.

C - incorrect.
No mention of "good-will" and "poisoning the business climate". the paragraph only talks about the possibility of winning bids.

D - Incorrect.
No mention of American projects. No mention of transnational projects being American projects.

E - Incorrect.
Not true. Otherwise, transnational projects would not be so popular.
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Re: Transnational cooperation among corporations is experiencing a model  [#permalink]

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New post 21 Mar 2018, 15:42
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This is a tough one.

The real clues to solve the question are in the second part of the first sentence

Quote:
Transnational cooperation among corporations is experiencing a model renaissance among United States firms, even though projects undertaken by two or more corporations under a collaborative agreement are less profitable than projects undertaken by a single corporation


The bold part actually means the share among two or more corporations is less than that which could have ONE only firm if it has the deal.

The red part is a clue that we are talking about profit.

The two indications lead us tho answer choice B. The others are out of scope.

Hope is clear now.

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Re: Transnational cooperation among corporations is experiencing a model  [#permalink]

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New post 17 Apr 2018, 04:14
carcass wrote:
Transnational cooperation among corporations is experiencing a model renaissance among United States firms, even though projects undertaken by two or more corporations under a collaborative agreement are less profitable than projects undertaken by a single corporation. The advantage of transnational cooperation is that such joint international projects may allow United States firms to win foreign contracts that they would not otherwise be able to win.


Which of the following statements by a United States corporate officer best fits the situation of United States firms as described in the passage above?


Using POE we can easily eliminate C, D,and E.

From A and B, (B) is the winner as in (A) we don't have any info about losses. B uses soft language.


(A) “We would rather make only a share of the profit and also risk only a share of a possible loss than run the full risk of a loss.”

(B) “We would rather make a share of a relatively modest profit than end up making none of a potentially much bigger profit.”

(C) “We would rather cooperate and build good will than poison the business climate by all-out competition.”

(D) “We would rather have foreign corporations join us in American projects than join them in projects in their home countries.”

(E) “We would rather win a contract with a truly competitive bid of our own than get involved in less profitable collaborative agreements.”
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Re: Transnational cooperation among corporations is experiencing a model &nbs [#permalink] 17 Apr 2018, 04:14
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