CAT 2024 Slot 1 — VARC Question 9
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
There is a group in the space community who view the solar system not as an opportunity to expand human potential but as a nature preserve, forever the provenance of an elite group of scientists and their sanitary robotic probes. These planetary protection advocates [call] for avoiding “harmful contamination” of celestial bodies. Under this regime, NASA incurs great expense sterilizing robotic probes in order to prevent the contamination of entirely theoretical biospheres. . . .
Transporting bacteria would matter if Mars were the vital world once imagined by astronomers who mistook optical illusions for canals. Nobody wants to expose Martians to measles, but sadly, robotic exploration reveals a bleak, rusted landscape, lacking oxygen and flooded with radiation ready to sterilize any Earthly microbes. Simple life might exist underground, or down at the bottom of a deep canyon, but it has been very hard to find with robots. . . . The upsides from human exploration and development of Mars clearly outweigh the welfare of purely speculative Martian fungi. . . .
The other likely targets of human exploration, development, and settlement, our moon and the asteroids, exist in a desiccated, radiation-soaked realm of hard vacuum and extreme temperature variations that would kill nearly anything. It’s also important to note that many international competitors will ignore the demands of these protection extremists in any case. For example, China recently sent a terrarium to the moon and germinated a plant seed—with, unsurprisingly, no protest from its own scientific community. In contrast, when it was recently revealed that a researcher had surreptitiously smuggled super-resilient microscopic tardigrades aboard the ill-fated Israeli Beresheet lunar probe, a firestorm was unleashed within the space community. . . .
NASA’s previous human exploration efforts made no serious attempt at sterility, with little notice. As the Mars expert Robert Zubrin noted in the National Review, U.S. lunar landings did not leave the campsites cleaner than they found it. Apollo’s bacteria-infested litter included bags of feces. Forcing NASA’s proposed Mars exploration to do better, scrubbing everything and hauling out all the trash, would destroy NASA’s human exploration budget and encroach on the agency’s other directorates, too. Getting future astronauts off Mars is enough of a challenge, without trying to tote weeks of waste along as well. A reasonable compromise is to continue on the course laid out by the U.S. government and the National Research Council, which proposed a system of zones on Mars, some for science only, some for habitation, and some for resource exploitation. This approach minimizes contamination, maximizes scientific exploration . . .
Mars presents a stark choice of diverging human futures. We can turn inward, pursuing ever more limited futures while we await whichever natural or manmade disaster will eradicate our species and life on Earth. Alternatively, we can choose to propel our biosphere further into the solar system, simultaneously protecting our home planet and providing a backup plan for the only life we know exists in the universe. Are the lives on Earth worth less than some hypothetical microbe lurking under Martian rocks?
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
Moutai has been the global booze sensation of the decade. A bottle of its Flying Fairy which sold in the 1980s for the equivalent of a dollar now retails for $400. Moutai’s listed shares have soared by almost 600% in the past five years, outpacing the likes of Amazon. . . .
It does this while disregarding every Western marketing mantra. It is not global, has meagre digital sales and does not appeal to millennials. It scores pitifully on environmental, social and governance measures. In the Boy Scout world of Western business it would leave a bad taste, in more ways than one.
Moutai owes its intoxicating success to three factors—not all of them easy to emulate. First, it profits from Chinese nationalism. Moutai is known as the “national liquor”. It was used to raise spirits and disinfect wounds in Mao’s Long March. It was Premier Zhou Enlai’s favourite tipple, shared with Richard Nixon in 1972. Its centuries-old craftsmanship—it is distilled eight times and stored for years in earthenware jars—is a source of national pride. It also claims to be hangover-proof, which would make it an invention to rival gunpowder....
Second, it chose to serve China’s super-rich rather than its middle class. Markets are littered with the corpses of firms that could not compete in the cut-throat battle for Chinese middleclass wallets. And the country’s premium market is massive—at 73m-strong, bigger than the population of France, notes Euan McLeish of Bernstein, an investment firm, and still less crowded with prestige brands than advanced economies. Moutai is to these well-heeled drinkers what vintage champagne is to the rest of the world.....
Third, Moutai looks beyond affluent millennials and digital natives. The elderly and the middle-aged, it found, can be just as lucrative. Its biggest market now is (male) drinkers in their mid-30s. Many have no siblings, thanks to four decades of China’s one-child policy—which also means their elderly parents can splash out on weddings and banquets. Moutai is often a guest of honour.
Moutai has succeeded thanks to nationalism, elitism and ageism, in other words—not in spite of this unholy trinity. But it faces risks. The government is its largest shareholder—and a meddlesome one. It appears to want prices to remain stable. Exorbitantly priced booze is at odds with its professed socialist ideals. Yet minority investors—including many foreign funds—lament that Moutai’s wholesale price is a third of what it sells for in shops. Raising it could boost the company’s profits further. Instead, in what some see as a travesty of corporate governance, its majority owner has plans to set up its own sales channel.....
In the long run, its biggest risk may be millennials. As they grow older, health concerns, work-life balance and the desire for more wholesome pursuits than binge-drinking may curb the “Ganbei!” toasting culture [heavy drinking] on which so much of the demand for Moutai rests. For the time being, though, the party goes on.
Answer & solution
Which one of the following is both a reason for Moutai’s success as well as a possible threat to that success?
- B
Its appeal to the older age group.
- C
Chinese love of liquor filled celebration.
- D
Its appeal to the rich.
- E
Government involvement in its business.
Medium
The question asks for the single factor that is both a driver of Moutai's success and a possible threat to it. Scan the passage for an element that appears on both sides of the ledger. Government/state involvement fits: the firm "profits from Chinese nationalism" and the "national liquor" status (a success factor tied to the state), yet "the government is its largest shareholder—and a meddlesome one" that wants prices stable and is planning a rival sales channel (a clear risk).
Government involvement in its business. Both a reason and a threat. The state link underpins Moutai's nationalist prestige (success), but as "meddlesome" majority owner the government suppresses prices and plans "its own sales channel", described as "a travesty of corporate governance" (threat). Only this factor is explicitly cast as both. Accept.
Its appeal to the older age group. Stated purely as a success factor—"the elderly and the middle-aged… can be just as lucrative". No threat is attached to it. Reject.
Chinese love of liquor-filled celebration. The "Ganbei!" toasting culture supports demand (success), and its decline among future millennials is a risk—but that risk is tied to millennials aging, framed as the long-run threat, not as the celebration culture itself being the dual factor the way governance is. The passage's explicit success-and-threat pairing is the government, so C is not the best fit. Reject.
Its appeal to the rich. Presented only as a success factor (serving the super-rich, "what vintage champagne is to the rest of the world"). No corresponding threat. Reject.
Option A. Government involvement both fuels Moutai's nationalist prestige and threatens it through price suppression and a planned rival sales channel.