GMAT Reading Comprehension
Time management is an enormous challenge in Reading Comprehension. To
have enough time for the questions and not sacrifice time elsewhere in
the Verbal section, you'll need to be able to get the gist of the
passage in only two or three minutes. This may seem crazy compared to
the amount of detail in a passage, but it is actually a much more
productive, successful strategy than trying to swallow all the facts in
a text. The reason for this leads to the following points:
In the GMAT Reading Comprehension, Think Global.
The GMAT test-makers want to see if you understand how, and
especially why, authors develop their arguments in prose. As a result,
what an author says is much less important than what an author does.
Furthermore, what one line of a text does is much less important than
what a paragraph, or the whole text, accomplishes. We're talking
structure here, rather than content. And reading for a text's global
structure is crucial to Reading Comprehension.
In GMAT Reading Comprehension, Act Local
While you can't memorize all the details in a text, you can prepare
the terrain for detailed work whenever and wherever the questions
demand. This means skimming through the text just well enough to note
the author's key points, references, conclusions and transitions. With
the text roughly mapped out, you are then prepared to "act locally" in
that specific portion of the text relevant to a question. Take a look at
the following questions:
The modern multinational corporation is described as having
originated when the owner-managers of nineteenth-century British firms
carrying on international trade were replaced by teams of salaried
managers organized into hierarchies. Increases in the volume of
transactions in such firms are commonly believed to have necessitated
this structural change. Nineteenth-century inventions like the steamship
and the telegraph, by facilitating coordination of managerial
activities, are described as key factors. Sixteenth-and
seventeenth-century chartered trading companies, despite the
international scope of their activities, are usually considered
irrelevant to this discussion: the volume of their transactions is
assumed to have been too low and the communications and transport of
their day too primitive to make comparisons with modern multinationals
interesting.
In reality, however, early trading companies successfully purchased
and outfitted ships, built and operated offices and warehouses,
manufactured trade goods for use abroad, maintained trading posts and
production facilities overseas, procured goods for import, and sold
those goods both at home and in other countries. The large volume of
transactions associated with these activities seems to have necessitated
hierarchical management structures well before the advent of modern
communications and transportation. For example, in the Hudson’s Bay
Company, each far-flung trading outpost was managed by a salaried agent,
who carried out the trade with the Native Americans, managed day-to-day
operations, and oversaw the post’s workers and servants. One chief
agent, answerable to the Court of Directors in London through the
correspondence committee, was appointed with control over all of the
agents on the bay.
The early trading companies did differ strikingly from modern
multinationals in many respects. They depended heavily on the national
governments of their home countries and thus characteristically acted
abroad to promote national interests. Their top managers were typically
owners with a substantial minority share, whereas senior managers’
holdings in modern multinationals are usually insignificant. They
operated in a pre-industrial world, grafting a system of capitalist
international trade onto a pre-modern system of artisan and peasant
production. Despite these differences, however, early trading companies
organized effectively in remarkably modern ways and merit further study
as analogues of more modern structures.
1. The author’s main point is that
(A) modern multinationals originated in the sixtenth and seventeenth
centuries with the establishment of chartered trading companies
(B) the success of early chartered trading companies, like that of
modern multinationals, depended primarily on their ability to carry out
complex opertions
(C) early chartered trading companies should be more seriously
considered by scholars studying the origins of modern multinationals
(D) scholars are quite mistaken concerning the origins of modern
multinationals
(E) the management structures of early chartered trading companies are
fundamentally the same as those of modern multinationals
2. According to the passage, early chartered trading companies are
usually described as
(A) irrelevant to a discussion of the origins of the modern
multinational corporation
(B) interesting but ultimately too unusually to be good subjects for
economic study
(C) analogues of nineteenth-century British trading firms
(D) rudimentary and very early forms of the modern multinational
corporation
(E) important national institutions because they existed to further the
political aims of the governments of their home countries
3. It can be inferred from the passage that the author would
characterize the activities engaged in by early chartered trading
companies as being
(A) complex enough in scope to requrie a substantial amount of planning
and coordination on the part of management
(B) too simple to be considered similar to those of a modern
multinational corporation
(C) as intricate as those carried out by the largest multinational
corporations today
(D) often unprofitable due to slow communications and unreliable means
of transportation
(E) hampered by the political demands imposed on them by the governments
of their home countries
4. The author lists the various activities of early chartered trading
companies in order to
(A) analyze the various ways in which these activities contributed to
changes in managemnt structure in such companies
(B) demonstrate that the volume of business transactions of such
companies exceeded that of exceeded that of earlier firms
(C) refute the view that the volume of business undertaken by such
companies was relatively low
(D) emphasize the international scope of these companies’ operations
(E) support the argument that such firms coordinated such activities by
using available means of communication and transport
5. With which of the following generalizations regarding management
structures would the author of the passage most probably agree?
(A) Hierarchical management structures are the most efficient management
structures possible in a modern context.
(B) Firms that routinely have a high volume of business transactions
find it necessary to adopt hierarchical managemnt structures.
(C) Hierarchical management structures cannot be successfully
implemented without modern communications and transportation.
(D) Modern multinational firms with a relatively small volume of
business transactions usually do not have hierarchically organized
managemnt structures.
(E) Companies that adopt hierarchical management structures usually do
so in order to facilitate expansion into foreign trade.
6. The passage suggests that modern multinationals differ from early
chartered trading companies in that
(A) the top managers of modern multinationals own stock in their own
companies rather than simply receiving a salary
(B) modern multinationals depend on a system of capitalist international
trade rather than on less modern trading systmes
(C) modern multinationals have operations in a number of different
foreign counties rather than merely in one or two
(D) the operations of modern multinationals are highly profitable
despite the more stringent environmental and safety regulations of
modern governments
(E) the overseas operations of modern multinationals are not governed by
the national interests of their home countries
7. The author mentions the artisan and peasant production systems of
early chartered trading companies as an example of
(A) an area of operations of these companies that was unhampered by
rudimentary systems of communications and transport
(B) a similarity that allows fruitful comparison of these companies with
modern multinationals
(C) a positive achievement of these companies in the face of various
difficulties
(D) a system that could not have emerged in the absence of management
hierarchies
(E) a characteristic that distinguishes these companies from modern
multinationals
8. The passage suggests that one of the reasons that early chartered
trading companies deserve comparison with early modern multinationals is
(A) the degree to which they both depended on new technology
(B) the similar nature of their management structures
(C) similarities in their top managemnts’ degree of ownership in the
company
(D) their common dependence on polical stability abroad in order to
carry on foreign operations
(E) their common tendency to revolutionize systems of production |