Directions (1-10) : Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some of the questions.
Indeed, the western recession is really the beginning of good news for India! But to understand that we will have to move away for a while from the topic of western recession ......to the Japanese recession! For years the Japanese style of management has been admired. However, over the last decade or so, one key question has sprung up 'If Japanese management style is as wonderful as described, then why has Japan been in a recession for more than a decade?
The answer to this question is very simple. Culture plays a very important part in shaping up economies. What succeeds in one culture fails in another. The Japanese are basically non-materialistic. And however rich they become. unlike others. they cannot just keep throwing and buying endlessly. And once they have everything they need, there is a saturation point. It was only when companies like Toyota realised that they cannot keep selling cars endlessly to their home market that they went really aggressive in the western markets l and the rest is history. Japanese l companies grew bigger by catering to the world markets when their home markets shrunk. And the markets have to shrink finally after attaining a level of affluence! And that's great for the world because earth needs sustainable development. It does not need monstrous consumers who keep consuming at the cost of the environment and the earth. There should be limits to growth so that consumers are not converted into material dustbins for the profit of a handful of corporations.
Owing to the materialistic culture elsewhere. it was possible to keep selling newer products to the consumers despite haying existing ones which served equally well. They were lured through advertising and marketing techniques of 'dustbinixation' of the customer: and then finally. once they became ready customers. they were given loans and credits to help them buy more and more. When all the creditworthy people were given loans to a logical limit. they ceased to be a part of the market. Even this would have been understandable if it could work as an eye-opener. Instead of taking the 'Right Step' as Toyota did, they preferred to take a 'shortcut'. Now banks went to the non-creditworthy people and gave them loans. The people expectedly defaulted and the entire system collapsed.
Now, like Toyota western companies will learn to find new markets. They will now lean towards India because of its common man! The billion-plus population in the next 25 years will become a consuming middle class. Finally, the world's attention will shift to the developing world. Finally, there will be a real surge in income of: these people and in next fifty odd years, one can really hope to see an equal world in terms of material plenty, with poverty being almost non existent! And this will happen not by selling more cars to The Americans and The Europeans. It will happen or creating markets in India China Latin America and Africa, by giving their people purchasing power and by making products for them.
The recession has made us realise that it is not because of worse management techniques, but because of limits to growth. And they will realise that it is freat for planet Earth. After all, how many cars and houses must the rich own before calling it enough? It's time for them to look at others as well. Many years back, to increase his own profits, Henry Ford had started paying his workers more, so that they could buy his cars. In a similar fashion, now the developing world will pay the developing world so that they can buy their cars and washing machines.
The recession will kick-start the process of making the entire world more prosperous, and lay the foundation of limits to growth in the west and the foundation of real globalization in the world the globalization of prosperity. And one of its first beneficiaries will be India! |
1). Which of the following is most nearly the same in meaning to the word 'Catering' as used in the passage ?
| A). Considering |
| B). lending |
| C). Supplying |
| D). Working |
| E). Indulging |
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2). Which of the following is most nearly the same in meaning to the word 'Key' as used in the passage?
| A). Foundation |
| B). Solution |
| C). Requisite |
| D). Difficult |
| E). Important |
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3). What does the author mean by the "Right Step" in the passage ?
| A). Giving loans to creditworthy people only |
| B). Considering market growth along with environment protection |
| C). Restricting people to buy only such products as are needed by them |
| D). To start looking at never avenues and markets |
| E). None of the above |
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4). Although admired for years, why did the scepticism over the Japanese management style start since the last decade ?
| A). Japanese companies have been moving out of their home markets since the last decade. |
| B). Japanese banks have provided loans indiscriminately to the creditworthy as well as non creditworthy people. |
| C). Because Japanese markets have been going through a period of continuous recession since the last decade. |
| D). The unlimited growth of the Japanese markets has come at the cost of the western market. |
| E). None of the above |
|
5). Why does the author foresee the market being created in the developing countries instead of America and Europe ?
| A). All developing countries have materialistic culture. |
| B). Developed countries are willing to make an effort to achieve globalization. |
| C). The American and European markets have had a large number of credit defaulters. |
| D). Recession has not hit the markets of developing countries yet. |
| E). None of the above |
|
6). Which of the following is most nearly the same in meaning to the word 'Aggressive' as used in the passage?
| A). Violent |
| B). Determined |
| C). Demanding |
| D). Offensive |
| E). Brutish |
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7). According to the author, what is the main cause of Japanese recession?
| A). Only a handful of corporations earned profits and not the people in general. |
| B). Non-creditworthy people defaulted, which led to a collapse of the entire system. |
| C). Consumers were sold newer products which were similar in quality to the existing ones. |
| D). Japanese do not purchase endlessly and thus when products had been sold to every customer, the markets slowed down. |
| E). None of the above |
|
8). How does the author foresee the future globalization as an analogy to Henry Ford's example ?
A. Car companies would start selling cars in developing countries as well.
B. By paying the developing world the developed world would increase its own profit, in turn bringing affluence to developing world as well.
C. To earn profit, the companies in developing countries would move to foreign land.
| A). Only A |
| B). Only B |
| C). Only C |
| D). A and C |
| E). None of these |
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9). Which of the following is most nearly the opposite in meaning to the word 'Prosperous' as used in the passage ?
| A). Distressed |
| B). Helpless |
| C). Worse |
| D). Worthless |
| E). Underprivileged |
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10). Which of the following is most nearly the opposite in meaning to the word 'Consuming' as used in the passage ?
| A). Destroying |
| B). Exhausting |
| C). Greedy |
| D). Curtailing |
| E). Spending |
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