OG - 42 - 257

Passage 42

Modern manufacturers, who need reliable sources of materials and technologically advanced

components to operate profitably, face an increasingly difficult choice between owning the

producers of these items (a practice known as backward integration) and buying from independent

producers. Manufacturers who integrate may reap short-term rewards, but they often restrict their

future capacity for innovative product development.

Backward integration removes the need for some purchasing and marketing functions, centralizers

overhead, and permits manufacturers to eliminate duplicated efforts in research and development.

Where components are commodities (ferrous metals or petroleum, for example), backward

integration almost certainly boosts profits. Nevertheless, because product innovation means

adopting the most technologically advanced and cost-effective ways of making components,

backward integration may entail a serious risk for a technologically active company-for example,

a producer of sophisticated consumer electronics.

A company that decides to make rather than buy important parts can lock itself into an outdated

technology. Independent suppliers may be unwilling to share innovations with assemblers with

whom they are competing. Moreover, when an assembler sets out to master the technology of

producing advanced components, the resulting demands on its resources may compromise its

ability to assemble these components successfully into end products. Long-term contracts with

suppliers can achieve many of the same cost benefits as backward integration without

compromising a company’s ability to innovate.

However, moving away from backward integration is not a complete solution either. Developing

innovative technologies requires independent suppliers of components to invest huge sums in

research and development. The resulting low profit margins on the sale of components threaten the

long-term financial stability of these firms. Because the ability of end-product assemblers to

respond to market opportunities depends heavily on suppliers of components, assemblers are often

forced to integrate by purchasing the suppliers of components just to keep their suppliers in

business.

257. According to the passage, all of the following are benefits associated with backward

integration EXCEPT:

(A)    improvement in the management of overhead expenses

(B)    enhancement of profit margins on sales of components

(C)    simplification of purchasing and marketing operations

(D)    reliability of a source of necessary components
   (B)

(E)    elimination of unnecessary research efforts

Modern manufacturers, who need reliable sources of materials and technologically advanced

components to operate profitably, face an increasingly difficult choice between owning the

producers of these items (a practice known as backward integration) and buying from independent

producers. Manufacturers who integrate may reap short-term rewards, but they often restrict their

future capacity for innovative product developme

(choice D can be inferred from the first paragraph)

Choice B:

Manufacturers = assemblers

they don't sell components.

今天又做了一遍这篇文章，又错在了相同的地方。再仔细看了看，我觉得B眞的不应该是正确答案，因为正如"toto2004"所说: "Where components are commodities (ferrous metals or petroleum, for example), backward integration almost certainly boosts profits. " 暗示了1. components are sold. 2. profits are boosted.

相反，再看sen4sun的解释,

它没有任何地方暗示红对红或者蓝对蓝，比如加个respectively or accordingly的副词之类. 即便将前面的次序改写一下，我认为对文章意思没有任何影响。

它没有任何地方暗示红对红或者蓝对蓝，比如加个respectively or accordingly的副词之类. 即便将前面的次序改写一下，我认为对文章意思没有任何影响。