38) Uncertainty over Pill-Tech’s future direction has had a
negative impact on its economic position.
39) Newly developed drugs will offset the lost sales when
generic versions of their best-selling medicines become
40) The passage suggests that it is likely that Pill-Tech will
acquire more biotechnology companies.
An unprecedented escalation in oil prices is threatening the
hegemony of long-distance global supply chains. The cost of
shipping goods from overseas has risen by 40 per cent, thus
eroding the competitive advantage of lower Asian wage costs.
Companies that ship bulky, low-added-value goods are seeking
alternative logistical solutions to reduce transport costs. One
major manufacturer of paper products saved 500,000 gallons of
fuel per year by relocating its distribution centres to facilitate
shipping by rail. A switch to transporting wine by barge has
enabled one supermarket chain to reduce its fleet of trucks by 5
per cent. Traditionally, American timber was shipped to China
where it was made into furniture and then shipped back to the
USA. But in the wake of rising energy costs, moribund domestic
furniture-making centres are experiencing a resurgence.
Likewise, the American steel industry has seen production rise
by 12 per cent while China’s steel exports are down by a quarter.
41) Companies that ship lightweight, high-value products from
overseas are immune to rising oil costs.
Graduate and managerial level verbal reasoning tests 221
M10_WILL4537_01_SE_C10.QXP:M10_WILL4537_01_SE_C10 16/11/09 11:34 Page 221