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    #1

    A question from a RC

    Hi, I had a problem with a question from the following reading comprehension, from "The Official Guide for GMAT Review 2015". Would you please help. I am sorry that the question is long but I really need help. Thanks a lot.

    Reading:
    Ecoefficiency (measures to minimize environmental impact through the reduction or elimination of waste from production processes) has become a goal for companies worldwide, with many realizing significant cost savings from such innovations. Peter Senge and Goran Carstedt see this development as laudable but suggest that simply adopting ecoefficiency innovations could actually worsen environmental stresses in the future. Such innovations reduce production waste but do not alter the number of producats manufactured nor the waste generated from their use and discard; indeed, most companies invest in ecoefficiency improvements in order to increase profits and growth. Moreover, there is no guarantee that increased economic growth from ecoefficiency will come in similarly ecoefficient ways, since in today’s global markets,greater profits may be turned into investment capital that could easily be reinvested in old-style eco-inefficient industries. Even a vastly more ecoefficient industrial system could, were it to grow much larger, generate more total waste and destroy more habitat and species than would a smaller, less ecoefficient economy. Senge and Carstedt argue that to preserve the global environment and sustain economic growth, businesses must develop a new systemic approach that reduces total material use and total accumulated waste. Focusing exclusively on ecoefficiency, which offers a compelling business case according to established thinking, may distract companies from pursuing radically different products and business models.

    Question:
    7) The passage implies that which of the following is a possible consequence of a company’s adoption of innovations that increase its ecoefficiency?
    (A) Company profits resulting from such innovations may be reinvested in that company with no guarantee that the company will continue to make further improvements in ecoefficiency.
    (B) Company growth fostered by cost savings from such innovations may allow that company to manufacture a greater number of products that will be used and discarded, thus worsening environmental stress.
    (C) A company that fails to realize significant cost savings from such innovations may have little incentive to continue to minimize the
    environmental impact of its production processes.
    (D) A company that comes to depend on such innovations to increase its profits and growth may be vulnerable in the global market to
    competition from old-style eco-inefficient industries.
    (E) A company that meets its ecoefficiency goals is unlikely to invest its increased profits in the development of new and innovative ecoefficiency measures.

    Answer:
    I opted D but B is correct! I think that B is wrong because explains about manufacturing a greater number of products but in the red part of the reading, the author said: "do not alter the number of producats manufactured", so B is wrong.
    I insist that D is correct. Although the author said: "The passage suggests that ecoefficiency has allowed many companies to increase profits,
    but it does not suggest that eco-inefficient companies are more profitable or competitive in the global marketplace." but I think that the green part of the reading means that eco-inefficient industries are more competitive, and D is correct.

    Am I wrong?

  1. Barb_D's Avatar
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    #2

    Re: A question from a RC

    You are wrong. There is nothing in the passage to suggest non-efficient companies provide too much of a competitive challenge for an efficient one, so D is a complete fabrication. (The efficiency makes them more competitive, not less.)

    You need to read the part right after what you marked in red. My efficiency in making product X is to cut costs, not make fewer Xes. I can now grow, spending the same amount to make more Xes for the same production costs.
    I'm not a teacher, but I write for a living. Please don't ask me about 2nd conditionals, but I'm a safe bet for what reads well in (American) English.

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    #3

    Re: A question from a RC

    thanks a lot. I got your explanation about the correctness of B, but I could not understand why D is wrong yet!

    The reading said: "greater profits may be turned into investment capital that could easily be reinvested in old-style eco-inefficient industries." and I think it means that eco-inefficient industries will absorb more capital and it means that ecoefficient industries may be vulnerable in the global market to competition from old-style eco-inefficient industries.

    Would you explain more.

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    #4

    Re: A question from a RC

    It doesn't say anything about competition. Only that growth because of "eco-efficiency" may lead to investment in non "eco-efficient" companies.

    You may come up with new efficient ways to make car engines, for example, but the profits from that end up being invested in tar sands oil development. You are still the best and cleanest car engine manufacturer, but you have caused more pollution because of the fruits of your "eco-efficieny" efforts.

    Or, you produce economic growth through your "eco-efficiency" and that causes the standard of living of your employees to be higher and they end up spending more money on consumer products with wasteful packaging.

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