Directions Q (1 - 5)
: Read the passage carefully and answer the questions given below it Certain words/ phrases are- given in bold to help you locate them while answering son1e of the questions.
Today emerging markets account for more than half of world GDP on the basis of purchasing power according to the International Monetary Fund (IMF). In the 1990s, it was about a third and in the late 1990s 30% of countries in the developing world managed to increase their output per person faster than America did, thus achieving what is called 'Catch-up growth'. That catching up was son1ewhat lackadaisical - The closed at just 1.5% a year.
Some of this “was due to slower growth in America, most were not. The most impressive growth was the biggest emerging economies in Brazil, Russia, India, and China BRICs. These economies have grown in different ways and for different reasons. The remarkable growth of emerging markets in general and the BRICs, in particular, transformed the global economy in many ways. Some commodity prices soared and the cost of manufactures.
A growing more accessible pool of labor in emerging economies played a part in both wage stagnation and rising income inequality in each one. Global poverty rates tumbled. Gaping economic imbalances fuelled an era of financial vulnerability and laid the groundwork for the global crisis. The shift towards the emerging economies will continue. But its most tumultuous phase seems to have more or less reached its end. Growth rates have dropped, the nature of their growth is in the process of changing too and its new mode will have lesser direct effects on the rest of the world. The likelihood of growth h in other en1erging economies having an effect in the near future comparable to that of the BRICs in the recent past is low. The emerging giants will grow larger and their ranks will swell, but their tread will no longer shake the Earth as it once did.
After the 1990s, there followed 'convergence with a vengeance'. China's pivot towards liberalization and global markets came at a propitious time in terms of politics, business, and technology. Rich economies were feeling relatively relaxed about globalization and current account deficits. America's booming and confidence were little troubled by the growth of Chinese industry or by off-shoring jobs to India. And the technology, etc., necessary to assemble and maintain complex supply chains were corning into their own/ allowing firms to spread their operations between countries and across oceans. The tumbling costs of shipping and communication sparked globalization's second unbounding (the first was the simple ability to provide consumers in one place with goods from another). As longer supply chains infiltrated and connected places with large and fast-growing working-age populations, enormous quantities of cheap new labor became accessible. In 2007, China 's economy expanded by an eye-popping 14.2%. India managed 10.1% growth Russia 8.5 % and Brazil 6.1%. The IMF now reckons there will be a slowdown in growth. China will grow by just 7.6% in 2013 India by 5.6% and Russia and Brazil by 2.5%. Other countries have impressive growth potential. ' Next 11 ' (N 11) which includes Bangladesh, Indonesia, Mexico, Nigeria, and Turkey. But there are various reasons to think that this N11 cannot have an impact on the same scale as that of the BRICs. The first is that these economies smaller. The N11 has a population of just over 1.3 billion, less than half that of the BRICs. The second is that the Nll is richer now than the BRICs were back in the day.
The third reason that the performance of the BRICs cannot be repeated is the very success of that performance. The world economy is much larger than it used to be twice as in real terms as it was in 1992 according to IMF figures. But whether the world can build a remarkable era of growth will depend in large part on whether new giants tread a path towards greater global co-operation or stumble in times of tumult and in the worst case fight.
1. What is the author's main objective in writing this passage
. To urge emerging economies to deal with growth which can be disruptive maturely and without conflict.
. To point out that while the period of growth of BRICs was disruptive this disruption has almost come to a close.
. To criticize advanced economies for their handling of growth and promoting competition and conflict in certain regions.
A. A and B
B. Only A
C. Only C
D. B and C
E. All of these
: Option A
The author is not criticizing advanced economies for their growth handling.
2. Which of the following most nearly the SAME in meaning as the word tumbling used in the passage
: Option C
tumbling has the same meaning as the word reducing.
3. Which of the following most nearly the SAME in meaning as the word Propitious used in the passage
: Option B
Felicitous means well chosen or suited to the circumstances hence is similar in meaning to Propitious.
4. Which of the following is most OPPOSITE in meaning to the word expanded as used in the passage
used in the passage.?
: Option D
Shrunk is opposite to expand.
5. Which of the following is most OPPOSITE in meaning to the word tumult as used in the passage
used in the passage.?
: Option B
tumult means a loud, confused noise, especially one caused by a large mass of people hence tranquility is the word most opposite in meaning.