Direction (Q. 1 - 10) : Read the following passage carefully and answer the questions given below it. Chinese products of comparable quality, novel conception and low prices have been flooding the Indian market. The reasons for considering manufacturing in China generally hinge on reducing manufacturing costs for some products, especially products for the mass market and product lines in order to maintain competitiveness in existing markets. In other cases companies have invested in manufacturing in China. Strategies can also be positioned around reducing component costs in existing or future product lines while retaining research and development, design and other high end manufacturing in India.The differential in price ranges from 20% to as high as 50%. ? Dumping!? Has been the outcry by our businessmen, nurtured over five decades by the license raj, and many industry circles have been clamouring for protectionism. Conversely, companies are sourcing products for the Indian market from China and some like the Patel Group are proposing to shift their entire operations to China. One of the mainstays of the Chinese strategy of following a mass-production and mass-consumption formula is to keep the profit margins low and cover the gap by the subsequent boost in sales. With think big, think global? As its motto, the huge scale of operations of the Chinese industry is geared towards supplying not only the large domestic market, but also exporting extensively to global markets at cheap rates. When China opened up its economy to foreign investors, it simultaneously provided a significant thrust to the export potential through a judicious mix of state incentives and the free market mechanism. It created Special Economic Zones (SEZs) that were given preferential treatment. The export sector was given a boost by creating an extensive export network and dismantling impediments to the import of technology. The benefits accruing to Chinese manufacturers are essentially due to seven factors: economies of scale in manufacturing, tariff differentials, lower cost of capital investment, higher labor productivity, lower transaction, power and transportation costs. An oft ignored aspect of the Chinese business acumens the Chinese manufacturer’s vision to climb up the value chain and China’s competencies in the higher end of the technology spectrum that requires highly skilled labor. The country’s state-level research institutions and major universities have opened research centres and bases that combine production, training and research. China is doing what Japan did in the 1970s and South Korea in the 1980s. An alternative strategy for India could be to concentrate on building competitive advantage in the services and knowledge based sectors, allowing the Chinese to rule the manufacturing domain.
1. Which of the following best define Special Economic Zones (SEZ) ?
1) Designated areas in countries that possess better economic zones.
2) An act passed by government to support foreign policy.
3) A geographical region that has economic and other laws that are more free–market oriented than a country's typical or national laws.
4) A wide area where "Nationwide" laws may or may not be suspended inside a special economic zone.
5) None of these
2. Which of the following statements is based on the facts mentioned in the given passage ?
1) China's emergence as a manufacturing powerhouse has been astonishing.
2) Patel group is none of the several Indian companies to have shifted operation or sourcing from China.
3) Manufacturing in China has been seen as a way to cut costs and increase profits.
4) Both 2 and 3
5) All of the above
3. What is/are the reasons for sourcing and manufacturing in China ?
A) Achieve manufacturing excellence.
B) Lower capital costs.
C) High intellectual property protection costs.
1) Only A 2) Only B 3) Only C 4) Both B and C 5) Both B and A
4. Which of the following shows vision of Chinese manufacturers ?
1) Chinese manufacturers have set a long term vision of making India a major buyer of its products and services.
2) They want to increase their market share only in India.
3) The want to become lowest cost supplier.
4) China's manufacturers want to expand their volume to global markets expertise at unprecedented rates and in surprising ways.
5) All of the above
5. What does the author want to communication by giving the example of Patel group ?
1) The trend of companies shifting to China can lead India upward.
2) The country China is politically stable and has a young, increasingly well–educated workforce.
3) In India, companies are facing lack of resources.
4) The rule of game is now changing to how much market share one can win over rivals.
5) None of these
Direction (6–8) : Choose the word which is MOST SIMILAR in meaning of the word printed in bold as used in the passage-
1) Tailored 2) Appointed 3) stuffed 4) Prepared 5) Adjunct
1) Demolishing 2) Creating 3) Covering 4) Assembling 5) Raising
1) Together 2) Couple 3) Contingent 4) Striver 5) Exquisite
Direction (9 – 10) :Choose the word which is MOST OPPOSITE in meaning of the word printed in bold as used in the passage-
1) Compiling 2) Dwindling 3) Growing 4) Flowing 5) Dissipating
1) Stupidity 2) Insight 3) Sensitivity 4) Inability 5) Discernment
1.3 , 2.4 , 3.5 , 4.4 , 5.2 , 6.4 , 7.1 , 8.3 , 9. 2 , 10.4