Question

Which of the following statements by a United States corporate officer best fits the situation of United States firms as described in the passage above?

• A. We would rather make only a share of the profit and also risk only a share of a possible loss than run the full risk of a loss.”
• B. We would rather make a share of a relatively modest profit than end up making none of a potentially much bigger profit.”
• C. “We would rather cooperate and build good will than poison the business climate by all-out competition.”
• D. “We would rather win a contract with a truly competitive bid of our own than get involved in less profitable collaborative agreements.”

Answer 1

The correct option is B We would rather make a share of a relatively modest profit than end up making none of a potentially much bigger profit.”

According to the passage, for certain foreign contracts United States firms can either cooperate and hope to earn a modest profit, or not cooperate, not win the contract, and earn no part of a larger profit. This is how choice B describes the situation, so choice B is the best answer. In order to earn a profit, United States firms must cooperate, so the alternatives described in several of the choices are not in practice open to them: the alternatives of a modest risk versus a full risk (choice A).,cooperation versus competition (choice C), and winning on their own versus collaborating (choice D).