Reading Passage Question

Government policy in Frieland has traditionally favored foreign investment. Leaders of all political parties have been virtually unanimous in their belief that foreign investment in Frieland would contribute to speeding that country’s economic development, a major priority of both the ruling coalition and opposition parties. Of special interest to the government were those industries that exported a significant share of their total output. Since Frieland had a relatively small population, there was a limit to the number of goods that could be produced for the local market. Also, the government did not want to encourage foreign investors to compete with local industries, even though new industries might alleviate the already high unemployment rate.

‘Government policy in Frieland has traditionally favored foreign investment’ is a GMAT reading comprehension passage with answers. Candidates need a strong knowledge of English GMAT reading comprehension.

This GMAT Reading Comprehension consists of 7 comprehension questions. The GMAT Reading Comprehension questions are designed for the purpose of testing candidates’ abilities in understanding, analyzing, and applying information or concepts. Candidates can actively prepare with the help of GMAT Reading Comprehension Practice Questions.

Questions and Solutions

1. The best possible title of the passage is

(A) Government Policy in Frieland.
(B) How to Provide Employment.
(C) Attracting Foreign Investment.
(D) The Economics of Developing Countries.
(E) Foreign Investment and Economic Development.

2. It can be concluded that the aim of the author is to

(A) increase foreign investment.
(B) protect local industry from foreign competition.
(C) increase unemployment benefits for workers.
(D) develop a theory of foreign investment.
(E) increase the indigenous population of Frieland.

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