Question

Directions for Summary: A paragraph is followed by four options which have summarized the passage in their own way. Pick the option that best summarizes 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. 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. 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. Innovations in production and distribution are helping emerging economies compete with countries to which they once supplied cheap labour.

Answer 1

The Correct Option is C

To accurately summarize the provided passage, we need to identify the key elements of the text and how they relate to the options given. The passage discusses the rise of innovation in developing countries, comparing them to innovation trends in Japan starting in the 1950s. The driving forces behind this transformation are ambition, fear, and competition, leading these countries to become global players after starting as providers of cheap labor.

Analysis of Options:

1. Option 1: "Developing countries are being forced to invent new business models which challenge the old business models, so they can remain competitive domestically." This option emphasizes necessity and local competition, but misses the global aspect and innovation-driven ambition mentioned in the passage.
2. Option 2: "Production and distribution models are going through rapid innovations worldwide as developed countries are being challenged by their earlier suppliers from the developing world." This option focuses on the global challenge but lacks mention of the developing countries' transition up the value chain and becoming innovators.
3. Option 3: "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." This option captures the core idea of the passage: the shift from cheap labor supplier to global innovator, driven by competition and ambition. It accurately summarizes the transformation and global reach.
4. Option 4: "Innovations in production and distribution are helping emerging economies compete with countries to which they once supplied cheap labour." While this option discusses innovation and competition, it does not fully encapsulate the movement up the value chain or the transition to becoming global leaders.

Conclusion: Option 3 is the best summary because it effectively integrates all key elements: the initial role as suppliers of cheap labor, the drive by competition and ambition to innovate, and the eventual achievement of global influence.