Business
CAT 2021 Slot 1 · VARC · Easy · Verbal Ability
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.
- A.
Developing countries are being forced to invent new business models which challenge the old business models, so they can remain competitive domestically.
- B.
Innovations in production and distribution are helping emerging economies compete with countries to which they once supplied cheap labour.
- C.
Competition has driven emerging economies, once suppliers of cheap labour, to become innovators of business models that have enabled them to move up the value chain and go global.
- D.
Production and distribution models are going through rapid innovations worldwide as developed countries are being challenged by their earlier suppliers from the developing world.
C
Explanation
The paragraph explains how developing countries (former suppliers of cheap labour) are innovating, moving up the value chain, and expanding globally. Option C summarizes all key elements accurately.
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