Companies and the State Reading Answers

Nov 12, 2024

Companies and the State Reading Answers is an academic reading answers topic. Companies and the State Reading Answers has a total of 13 IELTS questions in total. In the questions set,you have to choose the correct option from given passages.

The IELTS Reading section is a crucial component of the IELTS exam, designed to assess a candidate's ability to comprehend and analyze different types of passages. In this passage, you will engage with a series of IELTS reading practice questions that simulate real test scenarios. These questions are aimed at improving your skills in identifying key ideas, extracting specific information, and making inferences. Whether you are preparing for the Academic or General Training module, practicing these IELTS reading questions will help you become familiar with the format and boost your confidence for the actual test.

Section 1

COMPANIES AND THE STATE

A. Under the feudal system of the middle Ages, everybody knew their place, even if they occasionally overstepped the mark. The peasant owed allegiance to the squire, the squire to the nobleman and the nobleman to the king. By contrast since industrial capitalism has been around, the relationship between companies and the state has been volatile. The 19th century was an era of laissez-faire, but in the 20th century two world wars required strong state control of the economy and in the social democracies that prevailed after 1945 the private sector played a diminished part, particularly in Europe. When economies were liberalized after 1980, the state retreated again and nationalized industries were returned to the private sector.

B. Now three factors are at work that could change the relationship yet again. The first is the financial crisis of 2007-08 which undermined the argument that free markets, left alone, would regulate themselves. It has been followed by a long period of austerity that has made voters angry and boosted support for populist parties on both left and right. Companies make obvious targets for such popular anger.

C. The second factor is the growth of the internet, which has made it much easier for both companies and the state to gather large amounts of information about individuals. The state is tempted to take advantage of this corporate knowledge largely for policing and anti-terrorism reasons, but also feels the need to regulate how companies store and use personal data

D. The third is the continuing impact of globalization. This gives multinational firms more freedom to move around the world, but it also means that Western companies face competition from many emerging- market titans with state backing. If rich-world governments hobble their own companies too much, they may hand marker dominance to the champions of the emerging world. That is no way to create jobs.

E. There is a fine line between creating an environment in which companies can flourish, and cosseting businesses so much that they become uncompetitive. The problem in developed countries has not, in recent years, been governments unwillingness to help; it has been a lack of strategic vision. There has been too much micromanagement to encourage particular industries and particular behavior.

F. All governments and companies are at the mercy of these long-term trends. In the developed world, businesses are competing against companies from emerging economies that may be directly state-owned or at least have a lot of government support. Economic growth is faster in emerging markets, so that is where multinationals increasingly want to be; if rich-country governments over-regulate their domestic markets, they will get a progressively lower share of multinational investment. Investors in the rich world are more likely to prosper if big companies can take advantage of opportunities in developing countries; as the populations of rich nation's age, their pension funds need to accumulate claims on emerging markets.

G. Leaders on both sides should realize that an antagonistic relationship is in nobody's interest. Governments lose out if businesses find it hard to operate in their country, and businesses suffer if governments are not able to prevent political or financial turmoil. Governments need to focus on the big picture - in essence, provide a stable tax regime and an education system that produces well-qualified knowledge workers - rather than try to micromanage businesses through excessive regulation. Companies must understand that if they push tax avoidance too far they will alienate customers and undermine the societies in which they operate. At a time when the rich world is struggling to generate growth. governments and companies alike should acknowledge the fact that they are partners not enemies.

Questions 15-21

Which paragraph of the given passage contains the following information?

Choose the correct letter A-G.

15. A hierarchy is talked about.

Answer: A

Supporting statement: “........The peasant owed allegiance to the squire, the squire to the nobleman, and the nobleman to the king.......”

Keywords: hierarchy, allegiance

Keyword Location: para A, Line 2

Explanation: This statement describes a structured hierarchy under the feudal system, with each social class owing allegiance to another. This clearly reflects the concept of "hierarchy" mentioned in the question, which is why Paragraph A is the correct answer.

16. Government is not willing to lend a hand to the countries.

Answer: E

Supporting statement: “........The problem in developed countries has not, in recent years, been government’s unwillingness to help; it has been a lack of strategic vision.......”

Keywords: government, unwillingness

Keyword Location: para E, Line 2

Explanation: This line states that the issue is not that the government is unwilling to support businesses, but rather that it lacks a strategic vision. This directly responds to the question, clarifying that the problem is not an unwillingness to help, making Paragraph E the most appropriate answer.

17. Voters are fuming due to long period of severity.

Answer: B

Supporting statement: “.......It has been followed by a long period of austerity that has made voters angry and boosted support for populist parties on both left and right.........”

Keywords: angry, austerity

Keyword Location: para B, Line 3

Explanation: This statement explains that austerity measures have led to voter anger, which supports the question's premise regarding "voters fuming due to a long period of severity

18. Investors in prosperous companies are more likely to flourish.

Answer: F

Supporting statement: “........Investors in the rich world are more likely to prosper if big companies can take advantage of opportunities in developing countries........”

Keywords: prosper, developing

Keyword Location: para F, Line 2

Explanation: Here, the text suggests that investors in wealthy countries are more likely to thrive when companies tap into emerging markets. This aligns well with the statement in the question that "investors in prosperous companies are more likely to flourish."

19. It's effortless to get information about individuals.

Answer: C

Supporting statement: “........The growth of the internet…has made it much easier for both companies and the state to gather large amounts of information about individuals........”

Keywords:internet, information

Keyword Location: para C, Line 1

Explanation: This line explains that the internet has simplified the process of gathering individual data, which supports the question's mention that "it’s effortless to get information about individuals."

20. More budding companies, more antagonism.

Answer: D

Supporting statement: “........This gives multinational firms more freedom to move around the world, but it also means that Western companies face competition from many emerging-market titans with state backing.......”

Keywords: firms, competition

Keyword Location: para D, Line 1

Explanation: The passage highlights that globalization leads to increased competition from state-backed companies in emerging markets, which connects to the question’s phrase, "more budding companies, more antagonism."

21. Government should focus on an unwavering tax regime and an education system.

Answer: G

Supporting statement: “.......Governments need to focus on the big picture – in essence, provide a stable tax regime and an education system that produces well-qualified knowledge workers........”

Keywords: regime, education

Keyword Location: para G, Line 2

Explanation: This statement suggests that governments should prioritize a stable tax policy and strong education system, aligning precisely with the question's focus.

Questions 22-26

Choose the correct letter A, B, C, OR D.

22. The state is lured to take advantage of corporate knowledge for

A. Intensifying business globally

B. Improving financial system of the state

C. Policing and anti-terrorism

D. Generating extra employment prospects

Answer: C

Supporting statement: “.......The state is tempted to take advantage of this corporate knowledge largely for policing and anti-terrorism reasons.........”

Keywords: policing, anti-terrorism

Keyword Location: para C, Line 2

Explanation: This line clarifies that the state’s primary interest in corporate data is for policing and anti-terrorism, which directly corresponds to the answer C.

23. More liberty to move around the globe is the impact of

A. Use of internet in day to day time

B. enhanced technology

C. Sophisticated communication system

D. Globalization

Answer: D

Supporting statement: “........The continuing impact of globalization…gives multinational firms more freedom to move around the world.......”

Keywords: globalization, freedom

Keyword Location: para D, Line 1

Explanation: Here, globalization is identified as the factor that provides multinationals with increased mobility. This supports answer D, making it correct.

24. Companies are incapable to flourish in developed countries due to

A. Shortage of strategic vision

B. Government is not supporting

C. High level of contest

D. Less encouragement to a particular industry

Answer: A

Supporting statement: “......The problem in developed countries has not…been governments unwillingness to help; it has been a lack of strategic vision.........”

Keywords: vision, flourish

Keyword Location: para E, Line 2

Explanation: The text emphasizes that a lack of strategic vision—not government unwillingness—is the reason why businesses cannot flourish in developed countries, confirming answer A as correct.

25. According to the passage economic growth is more rapid in

A. Domestic markets

B. Emerging markets

C. Developed countries

D. International markets

Answer: B

Supporting statement: “.......Economic growth is faster in emerging markets........”

Keywords: growth, emerging

Keyword Location: para F, Line 1

Explanation: The statement straightforwardly notes faster economic growth in emerging markets, matching answer B.

26. Business be ill with, if governments

A. Don't lend a hand to corporate business

B. Is incapable to prevent political or financial chaos

C. Is powerless to handle import and export trading

D. Is unable to trace tax evasions

Answer: B

Supporting statement: “........Businesses suffer if governments are not able to prevent political or financial turmoil.......”

Keywords: suffer, political

Keyword Location: para G, Line 3

Explanation: This line explains that businesses face challenges if governments are unable to prevent political or economic instability, which aligns directly with answer B.

Questions 27-28

Match each statement with the correct letter A-D.

27. Hostile relationship is not in anybody's interest, this should

be realized by ....

Answer: B

Supporting statement: “.......Leaders on both sides should realize that an antagonistic relationship is in nobody’s interest........”

Keywords: leaders, antagonistic

Keyword Location: para G, Line 1

Explanation: This line indicates that leaders, both in government and in business, should avoid antagonistic relations, confirming answer B.

28. They are partners not enemies, this must be acknowledged by business companies and

Answer: D

Supporting statement: “.......governments and companies alike should acknowledge the fact that they are partners not enemies........”