1.

The United States, Germany, Japan and other industrial powers are being
transformed from industrial economies to knowledge and information based service
economies, whilst manufacturing has been moving to low wage countries. In a
knowledge and information based economy, knowledge and information are the key
ingredients in creating wealth.
2. (c) Paraphrase 2 is not acceptable because the sentence structure has been changed.
3. other industrial Powers = other industrialized nations
transformed = reshape
whilst = while
has been moving = has been in motion
low wage countries = countries with low wages
ke ingredients = essential elements
4. Business can develop… (b) flatter, less centralised structures

Business can develop flatter, more decentralized structures and more flexible
arrangements for personnel and management thanks to information systems.
Organizations are attempting to become more competitive and efficient by converting into
digital enterprises, in which practically all key business processes and relationships with
customers, suppliers, and workers are controlled digitally.