Question: The decline of manufacturing in a region sets off a chain reaction. Once manufacturing is outsourced, process-engineering expertise can’t be maintained, since it depends on daily interactions with manufacturing. Without process-engineering capabilities, companies find it increasingly difficult to conduct advanced research on next-generation process technologies. Without the ability to develop such new processes, they find they can no longer develop new products.

Which of the following is best supported by the passage?

1. In the long term, an economy with a deteriorating infrastructure for advanced process engineering and with declining manufacturing activity will likely lose its ability to innovate.
2. To develop new products, a company must never cut down on its manufacturing.
3. An increase in the manufacturing activity in a region leads to increase in innovation within the region
4. To develop new products, a company needs to frequently change its processes.
5. An economy that has growing manufacturing capabilities will churn out more new products than other economies.

Correct Answer: (A)
Explanation: A region's loss of manufacturing triggers a series of events. Process engineering expertise cannot be maintained once manufacturing is outsourced because it depends on regular interactions with manufacturing. Companies increasingly struggle to conduct cutting-edge research on next-generation process technologies without the ability to engineer methodologies. They discover that they can no longer create new products without the ability to create such work techniques.

The question asks us to identify the answer that has the statement that the passage most strongly suggests. Let's examine each option in exclusion to discover the answer.

Option – A : Correct
It states that a country's ability to innovate will likely be lost over time if its advanced process engineering infrastructure deteriorates and manufacturing activity declines. Since the passage refers to "process engineering" in general, we are unsure of what exactly a decline in "advanced process engineering" might result in. However, a decline in manufacturing activity will inevitably result in a lack of ability to innovate or develop new products. Therefore this claim is supported by the passage's information and as a result this is the right option.

Option – B : Incorrect
It states that a business should never reduce its manufacturing in order to create new products. The passage refers to a region's manufacturing industry, not a company, which may have operations spread across several regions. As a result, this option is rejected.

Option – C : Incorrect
It states that an increase in manufacturing activity in a region causes an increase in innovation within the region. However, we cannot predict what impact an increase in manufacturing activity will have. As a result, this option is rejected.

Option – D : Incorrect
It states that in order to create new products, a business must frequently modify its operations. This statement might have been appealing if the word "frequently" had not been present. It should be noted that the passage does not imply that "frequent" process change is a requirement for the development of new products. As a result, this option is rejected.

Option – E : Incorrect
It states that an economy will produce more new products than other economies if it has expanding manufacturing capabilities. We cannot draw any conclusions about the impact of increasing manufacturing activity. As a result, this option is rejected.

“The decline of manufacturing in a region sets off a chain reaction” - is a GMAT question about critical thinking. A candidate may choose to either find evidence that would undermine the argument or present an argument that is illogical in order to respond to the question. The GMAT critical reasoning gauges a candidate's aptitude for logic and analysis.

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