Reading Passage Question
Some economists believe that the United States can be utilized as a “land bridge” for the shipment of containerized cargo between Europe and the Far East. Under the land-bridge concept, containerized freight traveling between Europe Line and the Far East would be shipped by ocean carrier to the United States East Coast, unloaded and placed on special railway flatcars, and shipped via railroad to a West Coast port. At this port, the containers would then be loaded on ships bound to a Far East port of entry. This procedure would be reversed for material traveling in the opposite direction. Thus, a land transportation system would be substituted for marine transportation during part of the movement of goods between Europe and the Far East.
If a land-bridge system of shipment were deemed feasible and competitive with alternative methods, it would open a completely new market for both United States steamship lines and railroads. At present, foreign lines carry all Far East-Europe freight. American carriers get none of this trade, and the all-water route excludes the railroads.
The system established by a land bridge could also serve to handle goods now being shipped between the United States West Coast and Europe, or goods shipped between the Far East and the United States Gulf and East Coasts. Currently, there are 20 foreign lines carrying West Coast freight to Europe via the Panama Canal, but not one United States line. Thus, in addition to the land bridge getting this new business for the railroads, it also gives the United States East Coast ships an opportunity to compete for this trade.
While this method of shipment will probably not add to the labor requirements at East and West Coast piers, it does have the potential of absorbing some of the jobs that the containerization of current cargo has eliminated or could eliminate. Thus, the possibility of creating new jobs for longshoremen is not an expected benefit of such a system, but it will most certainly create other labor requirements. The land-bridge concept has the potential of offering new job openings for United States railway workers and seamen. In addition, there would be expansion of labor requirements for people in the shipbuilding and container manufacturing business.
By making United States rail transportation an export service, the land-bridge system would have a favorable effect on our balance of payments. Such a system also has the potential of relieving the United States government of part of the burden it now bears in the form of subsidies to the shipping industry. The federal government subsidizes the construction and operation of scheduled vessels. Some 52 percent of the income from their operation comes from the government in that these ships are used for all our military and other government-related export shipments. The land-bridge requirement for scheduled sailings could effect a shift from the use of these scheduled lines for shipment of government goods to commercial cargo of the land bridge. This would then open some of the lucrative government business to the unscheduled, unsubsidized lines.
“Some Economists Believe that the United States Can Be Utilized as a “Land Bridge” is a GMAT reading comprehension passage with answers. Candidates must have a solid grip in English GMAT reading comprehension. There are 6 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
- According to the passage, if a land-bridge system were feasible, it would
(A) create employment in the bridge-building industry
(B) decrease the amount of air freight
(C) create a new market for steamship lines and railroads
(D) make Amerian railroads more efficient
(E) increase foreign trade
Answer: C
Explanation: The passage states about a land-bridge system of shipment. It describes the consequences if a land-bridge system of shipment were to be a “feasible” or an appropriate one. Being a feasible one, the land bridge would start a new market in pairs for the United States steamship lines and railroads. Therefore, option(C) will be the right choice for the above question.
- The author implies that which of the following would be provided employment by the development of a land bridge?
- Dock workers
- U.S. railway workers
- U.S. sailors
(A) I only
(B) III only
(C) I and II only
(D) II and III only
(E) I, II, and III
Answer: D
Explanation: The passage states in detail about the land-bridge system. The land-bridge notion has the ability of giving new jobs for United States railway workers and seamen. Moreover, there would be an increase in labor demands for people in the business of shipbuilding and container manufacturing. So, U.S. railway workers and U.S. sailors would serve the possibility of employment regarding the development of a land-bridge. Thus, option(D) seems to be the right answer.
- Which of the following might least benefit from a land bridge?
(A) U.S. railway workers.
(B) U.S. sailors.
(C) U.S. scheduled shipping lines.
(D) U.S. unscheduled shipping lines.
(E) U.S. government.
Answer: C
Explanation: The land-bridge development concerns for scheduled sailings could disturb a shift from the use of these scheduled lines. It could create a nuisance for the purpose of the shipment of government goods to commercial cargo of the land bridge. This would then start some of the advantageous government business to the unscheduled, unsubsidized lines. So, option(C) will be appropriate against the above question.
- According to the passage, the major alternative to a U.S. land bridge is the
(A) Panama Canal
(B) Suez Canal
(C) air-freight system
(D) all-land route
(E) military transport system
Answer: A
Explanation: In present, there are 20 foreign lines which carry West Coast transport goods to Europe via the Panama Canal, but not one United States line. So, besides the land bridge getting this new business for the railroads, it also offers an opportunity. It provides the United States East Coast ships an advantage to contest for this trade. So, the Panama Canal is an important alternative to a U.S. land bridge. So, option(A) will be the right answer.
- The passage states that a land bridge would improve United States
(A) foreign trade
(B) balance of payments
(C) railroad industry
(D) international relations
(E) gold reserves
Answer: B
Explanation: The land-bridge system would have a positive effect on our balance of payments. They would have this positive effect through making United States rail transportation a medium of exporting goods. This system also has the capability of relieving the United States government of part of the burden. A land bridge would enhance the balance of payments system in favor of the United States. Thus, option(B) will be justified as the correct answer.
- A land bridge would not
(A) aid U.S. steamship lines
(B) handle goods shipped between Europe and the Far East
(C) create new jobs for dock workers
(D) supply new business for U.S. railroads
(E) create business for unscheduled shipping lines
Answer: C
Explanation: The passage states about a method of shipment. This method of shipment will perhaps not attach to the labor requirements at East and West Coast piers. It has the ability to consume some of the jobs. The jobs that the containerization of current cargo has disqualified or could disqualify. Hence, the possible outcomes to design new jobs for dock workers is not beneficial for the system. So, option(C) will be the right choice among the other options.
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