Reading Passage Question

The export oriented economic policies adopted by Germany are so inspiring that other countries have tried to copy the same. In fact, Germany’s focus on producing goods required by emerging economies, especially China, helped Germany recover rapidly from the recession of 2007-08, and moderated the impact of the sovereign-debt crisis that was faced by the euro zone. However, Germany is currently facing a recession. Its economy shrank in the third quarter and probably grew only slightly in the fourth. Reason – the vulnerability of success of export policies to the conditions abroad, especially when exports constitute half of its GDP. Exports to Britain have fallen post Brexit. China’s demand for German goods has reduced post the new emissions-tests requirement. Another big market, America, is expected to suffer sharp slowdowns this year. In the light of these developments, to maintain its economic strengths, Germany is now considering reducing energy prices, supporting local industries, and increasing investment with tax incentives, as other countries have done. The economic policies that other countries were trying to learn from Germany are thus being replaced in Germany by the policies that they are using.

“The Export-Oriented Economic Policies Adopted by Germany are so Inspiring” is a GMAT reading comprehension passage with answers. Candidates must have a solid grip on English GMAT reading comprehension. There are 4 multiple-choice questions in the above GMAT Reading Comprehension passages. GMAT Reading Comprehension Questions are delineated to evaluate candidates’ abilities to analyze and be conceptual for the answers. Candidates can brace up and take preparation by answering GMAT Reading Comprehension Practice Questions.

Solution and Explanation:

1. What is the Main Point of the passage?

1. To discuss the export policies of Germany.
2. To explain how its policies made Germany a strong economy.
3. To discuss the current economic situation of Germany.
4. To evaluate the current economic situation in Germany.
5. To discuss the reason that other countries want to copy Germany’s policies.

2. Which of the following has not been mentioned as the reason behind Germany’s current economic situation?

1. Germany's Export Policies
2. Brexit
3. New emissions-tests requirements
4. Sovereign-debt crisis
5. Exports make up half of Germany’s GDP.

3. Which of the following is Germany planning to do to maintain its economic strengths?

1. Change its policies
2. Raise energy prices
3. Reduce tax incentives
4. Reduce exports
5. Reduce investment

4. Which of the following is not true of “export” oriented economic policy of Germany mentioned in the passage?

1. Other countries try to copy these policies.
2. These policies helped Germany recover from the recession of 2007-08.
3. These policies are vulnerable to situations such as sovereign-debt-crisis that was faced by the euro zone.
4. These policies are unable to help Germany recover from the current recession.
5. These policies may be replaced by policies from other countries.

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