Provided here are examples of actual exam questions for the PTE Summarize Written Text section.
Q1: Comparative advantage
With an abundance of low-priced labor relative to the United States, it is no surprise that China, India and other developing countries specialize in the production of labor-intensive products. For similar reasons, the United States will specialize in the production of goods that are human-and-physical-capital intensive because of the relative abundance of a highly educated labor force and technically sophisticated equipment in the United States.
This division of global production should yield higher global output of both types of goods than would be the case if each country attempted to produce both of these goods itself. For example, the United States would produce more expensive labor-intensive goods because of its more expensive labor and the developing countries would produce more expensive human and physical capital-intensive goods because of their relative scarcity of these inputs. This logic implies that the United States is unlikely to be a significant global competitor in the production green technologies that are not relatively intensive in human and physical capital.
Nevertheless, during the early stages of the development of a new technology, the United States has a comparative advantage in the production of the products enabled by this innovation. However, once these technologies become well understood and production processes are designed that can make use of less skilled labor, production will migrate to countries with less expensive labor.
View AnswerAns: Different countries enjoy comparative advantage due to availability of human and physical capital or low-price labor, which leads to a greater worldwide production by specializing in the goods for which these countries have comparable advantages, so once the processes are well perceived, production is transferred from developed countries to countries with cheap labor.
(53 words)
Q2: American and Indian computer programming
Consider the current situation: like their counterparts in the United States, engineers and technicians in India have the capacity to provide both computer programming and innovative new technologies. Indian programmers and high-tech engineers earn one-quarter of what their counterparts earn in the United States. Consequently, India is able to do both jobs at a lower dollar cost than the United States: India has an absolute advantage in both. In other words, it can produce a unit of programming for fewer dollars than the United States, and it can also produce a unit of technology innovation for fewer dollars. Does that mean that the United States will lose not only programming jobs but innovation technology jobs, too? Does that mean that our standard of living will fall if the United States and India engage in international trade?
David Ricardo would have answered no to both questions –as we do today. While India may have an absolute advantage in both activities, that fact is irrelevant in determining what India or the United States will produce. India has a comparative advantage in doing programming in part because such activity requires little physical capital. The flip side is that the United States has a comparative advantage in technology innovation partly because it is relatively easy to obtain capital in this country to undertake such long-run projects. The result is that Indian programmers will do more and more of what U.S. programmers have been doing in the past. In contract, American firms will shift to more and more innovation. The United States will specialize in technology innovation; India will specialize in programming. The business managers in each country will opt to specialize in activities in which they have a comparative advantage. As in the past, the U.S. economy will continue to concentrate on what are called the “most best” activities.
View AnswerAns: Despite the fact that India has an absolute advantage in both computer programming and innovative new technologies, it is irrelevant in determining what India and United will produce in the future, as each country will opt to specialize in activities in which they have a comparative advantage, hence American firms will continue to concentrate on innovation and Indian will specialize in programming.
(62 words)
Q3: Diasporas
Diasporas – communities which live outside, but maintain links with, their homelands – are getting larger, thicker and stronger. They are the human face of globalization. Diaspora consciousness is on the rise – diasporas are becoming more interested in their origins, and organizing themselves more effectively; homelands are revising their opinions of their diasporas as the stigma attached to emigration declines, and stepping up their engagement efforts; meanwhile, host countries are witnessing more assertive diasporic groups within their own national communities, worrying about fifth columns and foreign lobbies, and suffering outbreaks of ‘diasporaphobia’.
This trend is the result of five factors, all of them connected with globalization: the growth in international migration; the revolution in transport and communications technology, which is quickening the pace of diasporas’ interactions with their homelands; a reaction against global homogenized culture, which is leading people to rethink their identities; the end of the Cold War, which increased the salience of ethnicity and nationalism and created new space in which diasporas can operate; and policy changes by national governments on issues such as dual citizenship and multiculturalism, which are enabling people to lead transnational lives. Diasporas such as those attaching to China, India, Russia and Mexico are already big, but they will continue to grow; the migration flows which feed them are likely to widen and quicken in the future.
View AnswerAns: Diasporas communities are continuously expanding with increasing consciousness of connecting to the home lands despite host countries’ concerns, which is caused by numerous globalization associated factors including increasing migration, transport and information revolution, as well as governmental policy change.
(39 words)
Q4: Nobel Peace Prize
This year’s Nobel Peace Prize justly rewards the thousands of scientists of the United Nations Climate Change Panel (the IPCC). These scientists are engaged in excellent, painstaking work that establishes exactly what the world should expect from climate change.
The other award winner, former US Vice President Al Gore, has spent much more time telling us what to fear. While the IPCC’s estimates and conclusions are grounded in careful study, Gore doesn’t seem to be similarly restrained.
Gore told the world in his Academy Award-winning movie (recently labeled “one-sided” and containing “scientific errors” by a British judge) to expect 20-foot sea-level rises over this century. He ignores the findings of his Nobel co- winners, the IPCC, who conclude that sea levels will rise between only a half-foot and two feet over this century, with their best expectation being about one foot. That’s similar to what the world experienced over the past 150 years.
Likewise, Gore agonizes over the accelerated melting of ice in Greenland and what it means for the planet, but overlooks the IPCC’s conclusion that, if sustained, the current rate of melting would add just three inches to the sea level rise by the end of the century. Gore also takes no notice of research showing that Greenland’s temperatures were higher in 1941 than they are today.
Gore also frets about the future of polar bears. He claims they are drowning as their icy habitat disappears. However, the only scientific study showing any such thing indicates that four polar bears drowned because of a storm.
The politician-turned-movie maker loses sleep over a predicted rise in heat-related deaths. There’s another side of the story that’s inconvenient to mention: rising temperatures will reduce the number of cold spells, which are a much bigger killer than heat. The best study shows that by 2050, heat will claim 400,000 more lives, but 1.8 million fewer will die because of cold. Indeed, according to the first complete survey of the economic effects of climate change for the world, global warming will actually save lives.
View AnswerAns: Being the co-winner of Nobel Peace Prize, Al Gore exaggerated his findings about climate change and overstated sea rise although evidences strongly point towards the opposite direction in favour of IPCC, who concluded from thorough analysis that global warming will not trigger substantial sea level rise and actually save lives.
(50 words)
Q5: It will never fly
The City of London Who would have thought back in 1698, as they downed their espressos, that the little band of stockbrokers from Jonathan’s Coffee House in Change Alley EC3 would be the founder: members of what would become the world’s mighty money capital?
Progress was not entirely smooth. The South Sea Bubble burst in 1720 and the coffee house exchanges burned down in 1748. As late as Big Bang in 1986, when bowler hats were finally hung up, you wouldn’t have bet the farm on London surpassing New York, Frankfurt and Tokyo as Mammon’s international nexus. Yet the 325,000 souls who operate in the UK capital’s financial hub have now overtaken their New York rivals in size of the funds managed (including offshore business); they hold 70% of the global secondary bond market, and the City dominates foreign exchange trading. And its institutions paid out £9 billion in bonuses in December. The Square Mile has now spread both eastwards from EC3 to Canary Wharf and westwards into Mayfair, where many of the private-equity ‘locusts’ and their hedge-fund pals now hang out.
For foreigners in finance, London is the place to be. It has no Sarbanes Oxley and no euro to hold it back, yet the fact that it still flies so high is against the odds. London is one of the most expensive cities in the world to live in, transport systems groan and there’s an ever-present threat of terrorist attack. But, for the time being, the deals just keep on getting bigger.
View AnswerAns: The city of London, the world’s mighty money capital, has evolved tortuously since 1698 and now has surpassed other metropolitans and dominated the global financial market, which leads London to be rather attractive to financial investors despite its substantial living cost, hidden safety concerns as well as congested transportation.
(49 words)
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