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  3. People find it hard to like businesses once they grow beyond a certain size. Banks that were "too big to fail" sparked a global

People find it hard to like businesses once they grow beyond a certain size. Banks that were "too big to fail" sparked a global

admin2018-06-06  41
问题     People find it hard to like businesses once they grow beyond a certain size. Banks that were "too big to fail" sparked a global economic crisis and burned bundles of taxpayers’ cash. Big retailers such as Walmart and Tesco squeeze suppliers and crush small rivals. Some big British firms minimise their tax bills so aggressively that they provoke outrage.
    It is shrewd politics to champion the little guy. But the popular fetish for small business is at odds with economic reality. Big firms are generally more productive, offer higher wages and pay more taxes than small ones. Economies dominated by small firms are often sluggish.
    Countries such as Greece, Italy and Portugal have lots of small firms which, thanks to cumbersome regulations, have failed lamentably to grow. Firms with at least 250 workers account for less than half the share of manufacturing jobs in these countries than they do in Germany, the euro zone’s strongest economy. For all the boosterism around small business, it is economies with lots of biggish companies that have been able to sustain the highest living standards.
    Big firms can reap economies of scale. A big factory uses far less cash and labour to make each car or steel pipe than a small workshop. Big supermarkets such as the villainous Walmart offer a wider range of high-quality goods at lower prices than any corner store. Size allows specialisation, which fosters innovation.
    Big firms have their flaws, of course. They can be slow to respond to customers’ needs, changing tastes or disruptive technology. To idolise big firms would be as unwise as to idolise small ones.
    Rather than focusing on size, policymakers should look at growth. One of the reasons why everyone loves small firms is that they create more jobs than big ones. But many small businesses stay small indefinitely. The link between small firms and jobs growth relies entirely on new start-ups, which are usually small, and which by definition create new jobs (as they did not previously exist).
    Rather than spooning out subsidies and regulatory favours to small firms, governments should concentrate on removing barriers to expansion. In parts of Europe, for example, small firms are exempted from the most burdensome social regulations. This gives them an incentive to stay small. Far better to repeal burdensome rules for all firms. The same goes for differential tax rates, such as Britain’s, and the separate bureaucracy America maintains to deal with small businesses. In a healthy economy, entrepreneurs with ideas can easily start companies, the best of which grow fast and the worst of which are quickly swept aside. Size doesn’t matter.  Growth does.
Why can’t the small enterprises expand in Italy?
选项 A、Due to too many rules.
B、Because of less cash.
C、For insufficient employees.
D、Owing to low-quality goods.
答案A
解析 事实细节题。由第三段第一句Countries such as Greece，Italy and Portugal have lots of small firms which，thanks to burdensome regulations，have failed to grow可知，意大利拥有许多小公司，但由于繁琐的法规，这些企业难以发展，因此A项为正确选项。第四段第二句提到far less eash and labour，但这里指的是与小作坊相比，大工厂生产每辆汽车或每根钢管所用的资金和劳力要少得多，所以排除B项和C项；第四段第三句提到high-quality goods，指的是与街头小店相比，大型超市能以更低的价格提供更多种类的高质量商品，但这并不意味着意大利的小公司不能扩大规模是由于其产品质量比大公司低，所以排除D项。
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