CAT 2021 Question Paper (Slot 1) - VARC Question 23

Question 23

The passage given below is followed by four alternate summaries. Choose the option that best captures the essence of the passage.
Developing countries are becoming hotbeds of business innovation in much the same way as Japan did from the 1950s onwards. They are reinventing systems of production and distribution, and experimenting with entirely new business models. Why are countries that were until recently associated with cheap hands now becoming leaders in innovation? Driven by a mixture of ambition and fear they are relentlessly climbing up the value chain. Emerging-market champions have not only proved highly competitive in their own backyards, they are also going global themselves.


The main points of the paragraph are:

1. Developing economies are becoming hotbeds of economic innovation.

2. Earlier they used to be associated with cheap labour, but now ambition and fear have made them competitive globally.

Option A: It correctly captures the two main points and hence is the answer. 

Option B: This option is distorted. Business innovations have not been mentioned as the reason why emerging economies have become competitive globally. It has only been mentioned as a factor in close association.

Option C: Again, the paragraph does not mention that the developing economies are being forced to do this in order to stay competitive. This option suggests an element of necessity for the survival of the economies, which is not implied.

Option D: This option is distorted. The passage only mentions innovations in developing economies and not worldwide.

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