GMAT Critical Reasoning

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Source: OG

Level: 3

Transnational cooperation among corporations is experiencing a modest renaissance among United States firms.even though projects undertaken by two or more corporations under a collaborative agreement are less profitable than projects undertaken by a single corporation.The advantage of transnational cooperation is that such joint international projects may allow United States firms to win foreign contracts that they would not otherwise be able to win.

Which of the following statements by a United States corporate officer best fits the situation of United States firms as described in the passage above?

  • A "We would rather make only a share of the profit and also risk only a share of a possible loss than run the full risk of a loss."
  • B "We would rather make a share of a relatively modest profit than end up making none of a potentially much bigger profit."
  • C "We would rather cooperate and build good will than poison the business climate by all-out competition."
  • D "We would rather have foreign corporations join us in American projects than join them in projects in their home countries."
  • E "We would rather win a contract with a truly competitive bid of our own than get involved in less profitable collaborative agreements."

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