Welcome! Check out our free B-School Guides to learn how you compare with other applicants.
Login or Register

Developing VS developed countries

This topic has 9 expert replies and 7 member replies
Goto page
  • 1,
  • 2
Next
kvitkod Rising GMAT Star Default Avatar
Joined
14 Mar 2011
Posted:
75 messages
Thanked:
1 times
Developing VS developed countries Post Wed Jul 20, 2011 7:47 pm
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    Many people believe that because wages are lower in developing countries than in developed countries, competition from developing countries in goods traded internationally will soon eliminate large numbers of jobs in developed countries. Currently, developed countries' advanced technology results in higher productivity, which accounts for their higher wages. Advanced technology is being transferred ever more speedily across borders, but even with the latest technology, productivity and wages in developing countries will remain lower than in developed countries for many years because developed countries have better infrastructure and better-educated workers. When productivity in a developing country does catch up, experience suggests that wages there will rise. Some individual firms in developing countries have raised their productivity but kept their wages (which are influenced by average productivity in the country's economy) low. However, in a developing country's economy as a whole, productivity improvements in goods traded internationally are likely to cause an increase in wages. Furthermore, if wages are not allowed to rise, the value of the country's currency will appreciate, which (from the developed countries' point of view) is the equivalent of increased wages in the developing country. And although in the past a few countries have deliberately kept their currencies undervalued, that is now much harder to do in a world where capital moves more freely.

    1. The passage suggests that if the movement of capital in the world were restricted, which of the following would be likely?
    A Advanced technology could move more quickly from developed countries to developing countries.
    B Developed countries could compete more effectively for jobs with developing countries.
    C A country's average wages could increase without significantly increasing the sophistication of its technology or the value of its currency.
    D A country's productivity could increase without significantly increasing the value of its currency.
    E Workers could obtain higher wages by increasing their productivity.

    2. The primary purpose of the passage is to
    A identify the origin of a common misconception
    B discuss the implications of a generally accepted principle
    C present information relevant in evaluating a commonly held belief
    D defend a controversial assertion against a variety of counterarguments
    E explain under what circumstances a well-known phenomenon occurs

    OA is DC
    The passage is from GMAT Prep. Please explain the second. What wrong with E?

    Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!
    Ozlemg GMAT Destroyer!
    Joined
    25 Jan 2011
    Posted:
    407 messages
    Followed by:
    6 members
    Thanked:
    25 times
    Test Date:
    29 Agust 2011
    Target GMAT Score:
    +700
    Post Tue Jul 26, 2011 1:03 am
    IMO, the passage mainly talks about a generel belief (line 1) rather than a phenomenon. In addition it is not right to conclude that the phenomenon is well-known. Is it stated so somewhere in the passage? IMO, option E is little bit going far.

    Hope this helps.

    _________________
    The more you suffer before the test, the less you will do so in the test! Smile

    akhpad GMAT Destroyer!
    Joined
    24 Mar 2010
    Posted:
    804 messages
    Followed by:
    4 members
    Thanked:
    50 times
    GMAT Score:
    720
    Post Tue Nov 08, 2011 10:44 am
    Yes C is right but why B is wrong. Passage uses lots of future tense. Can someone explain?
    I agree on OA but still confused on B.

    2. The primary purpose of the passage is to
    A identify the origin of a common misconception
    B discuss the implications of a generally accepted principle
    C present information relevant in evaluating a commonly held belief
    D defend a controversial assertion against a variety of counterarguments
    E explain under what circumstances a well-known phenomenon occurs



    1. The passage suggests that if the movement of capital in the world were restricted, which of the following would be likely?
    A Advanced technology could move more quickly from developed countries to developing countries.
    B Developed countries could compete more effectively for jobs with developing countries.
    C A country's average wages could increase without significantly increasing the sophistication of its technology or the value of its currency.
    D A country's productivity could increase without significantly increasing the value of its currency.
    E Workers could obtain higher wages by increasing their productivity.

    Last sentence of the passage "although in the past a few countries have deliberately kept their currencies undervalued, that is now much harder to do in a world where capital moves more freely."

    => if the movement of capital were restricted, better control over currency.

    Now, productivity improvements in goods traded internationally are likely to cause an increase in wages. if wages are not allowed to rise, the value of the country's currency will appreciate

    Why is D? I couldn't understsnd.

    _________________
    Regards
    Akhilesh Prasad

    Thanked by: atikjain

    GMAT/MBA Expert

    lunarpower GMAT Instructor
    Joined
    03 Mar 2008
    Posted:
    3361 messages
    Followed by:
    1326 members
    Thanked:
    2136 times
    GMAT Score:
    800
    Post Fri Nov 25, 2011 2:52 pm
    kvitkod wrote:
    The passage is from GMAT Prep. Please explain the second. What wrong with E?
    (e) is wrong because it doesn't describe this passage.

    first, there is no single “well-known phenomenon” upon which the whole passage is focused; the body of the passage describes a variety of different scenarios (= phenomena) that could happen under different circumstances. for (e) to be correct, the passage would have to describe the different sets of circumstances that would lead to one particular phenomenon.

    second, there's the matter of the public belief (“many people believe that…”) stated at the beginning of the paragraph. you definitely shouldn't neglect the opening line!
    if you pick choice (e), you are completely ignoring that introductory statement, as if it had nothing to do with the rest of the passage.

    _________________
    Ron is a Director of Curriculum Development at Manhattan GMAT. He has been teaching various standardized tests for 20 years.

    --

    Pueden hacerle preguntas a Ron en castellano
    Potete chiedere domande a Ron in italiano
    On peut poser des questions à Ron en français
    Voit esittää kysymyksiä Ron:lle myös suomeksi

    --

    Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.

    Yves Saint-Laurent

    --

    Learn more about ron

    Thanked by: satishchandra
    Free Manhattan GMAT online events - The first class of every online Manhattan GMAT course is free. Classes start every week.

    GMAT/MBA Expert

    lunarpower GMAT Instructor
    Joined
    03 Mar 2008
    Posted:
    3361 messages
    Followed by:
    1326 members
    Thanked:
    2136 times
    GMAT Score:
    800
    Post Fri Nov 25, 2011 3:04 pm
    akhpad wrote:
    Yes C is right but why B is wrong. Passage uses lots of future tense. Can someone explain?

    B discuss the implications of a generally accepted principle
    unfortunately, you can't reliably figure out the main point of the passage from these kinds of grammatical cues. there really is no way around actual reading comprehension -- that is, you must actually understand (a) what's in the passage and (b) how the different elements of the passage relate to each other.

    in choice (b), i think you are assuming that the “generally accepted principle” is the public belief in the first sentence.
    first of all, that part in itself is questionable. “many people believe” is definitely not the same thing as “generally accepted”; there are lots of wacky things that many people believe.
    second, think about the rhetoric of the opening statement. in most circumstances under which a writer would choose to open a sentence with “many people believe that…”, that writer would proceed to debunk that belief, or at the very least engage in critical analysis of its validity. (for instance, imagine that you're talking to a doctor about nutrition, and the doctor starts with “many people believe that you should eat lots of _____”. in these circumstances, the doctor is almost certainly going to follow that with advice NOT to eat lots of that particular food.)

    when you get into the passage, there's also the issue that the paragraph does not describe “implications” of the opening statement. instead, the paragraph describes a variety of factors affecting whether that statement will be true in the first place; the passage contains nothing about the possible consequences (“implications”) of the statement if it is, in fact, true.

    _________________
    Ron is a Director of Curriculum Development at Manhattan GMAT. He has been teaching various standardized tests for 20 years.

    --

    Pueden hacerle preguntas a Ron en castellano
    Potete chiedere domande a Ron in italiano
    On peut poser des questions à Ron en français
    Voit esittää kysymyksiä Ron:lle myös suomeksi

    --

    Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.

    Yves Saint-Laurent

    --

    Learn more about ron

    Free Manhattan GMAT online events - The first class of every online Manhattan GMAT course is free. Classes start every week.

    GMAT/MBA Expert

    lunarpower GMAT Instructor
    Joined
    03 Mar 2008
    Posted:
    3361 messages
    Followed by:
    1326 members
    Thanked:
    2136 times
    GMAT Score:
    800
    Post Fri Nov 25, 2011 3:32 pm
    akhpad wrote:
    Now, productivity improvements in goods traded internationally are likely to cause an increase in wages. if wages are not allowed to rise, the value of the country's currency will appreciate

    Why is D? I couldn't understsnd.
    you have to connect this idea to the idea about unnaturally restricting currency (the idea in the last sentence of the passage).

    the point of the sentence you've quoted here is that natural economic forces will cause the appreciation of currency in countries whose productivity increases.
    the last sentence goes on to say that governments have been able to prevent that appreciation -- i.e., to prevent these market forces from doing their work -- but that the free movement of capital makes that sort of manipulation much more difficult.

    _________________
    Ron is a Director of Curriculum Development at Manhattan GMAT. He has been teaching various standardized tests for 20 years.

    --

    Pueden hacerle preguntas a Ron en castellano
    Potete chiedere domande a Ron in italiano
    On peut poser des questions à Ron en français
    Voit esittää kysymyksiä Ron:lle myös suomeksi

    --

    Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.

    Yves Saint-Laurent

    --

    Learn more about ron

    Thanked by: AliceP
    Free Manhattan GMAT online events - The first class of every online Manhattan GMAT course is free. Classes start every week.
    shreerajp99 Really wants to Beat The GMAT! Default Avatar
    Joined
    22 May 2011
    Posted:
    116 messages
    Thanked:
    7 times
    Post Sun Sep 16, 2012 10:56 am
    There is a 3rd question as well for this passage:

    The passage suggests that which of the following would best explain why, in a developing country, some firms that have raised their productivity continue to pay low wages?

    (A) Wages are influenced by the extent to which productivity increases are based on the latest technology.
    (B) Wages are influenced by the extent to which labor unions have organized the country's workers.
    (C) Wages are not determined by productivity improvements in goods traded internationally.
    (D) The average productivity of the workers in the country has not risen.
    (E) The education level of the workers in the country determines wages


    I marked C but the correct ans is D.How can we conclude that the avg productivity of workers is the reason behind the low wages?Also,i find such economics passages tough.Any source where i can get such passages or any site that i can refer to?

    Thanks,
    Shreeraj

    GMAT/MBA Expert

    lunarpower GMAT Instructor
    Joined
    03 Mar 2008
    Posted:
    3361 messages
    Followed by:
    1326 members
    Thanked:
    2136 times
    GMAT Score:
    800
    Post Sun Oct 07, 2012 2:00 am
    shreerajp99 wrote:
    There is a 3rd question as well for this passage:

    The passage suggests that which of the following would best explain why, in a developing country, some firms that have raised their productivity continue to pay low wages?

    (A) Wages are influenced by the extent to which productivity increases are based on the latest technology.
    (B) Wages are influenced by the extent to which labor unions have organized the country's workers.
    (C) Wages are not determined by productivity improvements in goods traded internationally.
    (D) The average productivity of the workers in the country has not risen.
    (E) The education level of the workers in the country determines wages


    I marked C but the correct ans is D.How can we conclude that the avg productivity of workers is the reason behind the low wages?
    the key here, as on all detail-based problems, is to stay focused on what the passage actually says. generally, the answers to detail-based questions will "recycle" the information that's already given.

    here's what the passage actually says about this topic:
    Quote:
    Some individual firms in developing countries have raised their productivity but kept their wages (which are influenced by average productivity in the country's economy) low. However, in a developing country's economy as a whole, productivity improvements in goods traded internationally are likely to cause an increase in wages.
    so, basically, this is all they say about low wages in developing countries:
    * those wages are "influenced by average productivity in the country's economy";
    * if productivity increases, then wages won't stay low.

    since you're being asked for a circumstance that would allow wages to stay low, just take the opposite of the circumstance that won't allow them to stay low. that's choice (d).

    in this part of the passage, only one factor is mentioned that affects wages, and that factor is productivity. if productivity in fact doesn't affect wages -- as in choice (c) -- then, well, we don't know anything at all about what affects wages.

    Quote:
    Also,i find such economics passages tough.Any source where i can get such passages or any site that i can refer to?
    if your trouble mostly lies in reading and comprehending the passages themselves, then you can read articles from just about any economics journal published in the united states.
    on the other hand, if your primary issue is answering the questions correctly, then you're not going to get much help from sources other than the official gmat materials. luckily, though, there are lots and lots of official passages -- honestly, the two og's and gmat prep together contain more passages than you should reasonably need -- so you should still be fine there.

    _________________
    Ron is a Director of Curriculum Development at Manhattan GMAT. He has been teaching various standardized tests for 20 years.

    --

    Pueden hacerle preguntas a Ron en castellano
    Potete chiedere domande a Ron in italiano
    On peut poser des questions à Ron en français
    Voit esittää kysymyksiä Ron:lle myös suomeksi

    --

    Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.

    Yves Saint-Laurent

    --

    Learn more about ron

    Free Manhattan GMAT online events - The first class of every online Manhattan GMAT course is free. Classes start every week.
    gajji1234 Just gettin' started! Default Avatar
    Joined
    24 Aug 2013
    Posted:
    2 messages
    Post Thu Aug 29, 2013 11:33 pm
    Hi Ron,

    I am having a hard time trying to figure out what evaluating passages look like. This is in regard to the primary purpose question for this passage. Does an evaluating passage talks about the validity of/significance of a finding? Or does it talk about the merits and cons of a finding? Or does it talk about reasoning of the finding? Or is it any of the above?

    Venkat

    GMAT/MBA Expert

    lunarpower GMAT Instructor
    Joined
    03 Mar 2008
    Posted:
    3361 messages
    Followed by:
    1326 members
    Thanked:
    2136 times
    GMAT Score:
    800
    Post Sat Aug 31, 2013 7:34 am
    gajji1234 wrote:
    Hi Ron,

    I am having a hard time trying to figure out what evaluating passages look like. This is in regard to the primary purpose question for this passage. Does an evaluating passage talks about the validity of/significance of a finding? Or does it talk about the merits and cons of a finding? Or does it talk about reasoning of the finding? Or is it any of the above?

    Venkat
    see, the way you're asking this question is the real problem here: you're forgetting that reading comprehension is reading comprehension, in the literal sense.
    it's not a good idea to try to shoehorn passages into neat little classifications (like "evaluating passages"). you're going to find that very difficult, if not impossible; as soon as you think you've created an exhaustive list of categories, you'll see a passage that doesn't fit neatly into any of them.

    instead, the point is just to read the passage, and think about what it says.

    basically, you should do the kind of reading that you'd do in the real world (NOT in an "academic" situation -- thinking of this test as "academic" is the root of virtually all problems people have with CR and RC).
    imagine you're reading an article in a magazine.
    would you stop and think, "What type of article is this? What classification does it fit into?" and so on? no, of course you wouldn't -- you would just read it and think about what it says.
    you should do the same thing here.

    _________________
    Ron is a Director of Curriculum Development at Manhattan GMAT. He has been teaching various standardized tests for 20 years.

    --

    Pueden hacerle preguntas a Ron en castellano
    Potete chiedere domande a Ron in italiano
    On peut poser des questions à Ron en français
    Voit esittää kysymyksiä Ron:lle myös suomeksi

    --

    Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.

    Yves Saint-Laurent

    --

    Learn more about ron

    Free Manhattan GMAT online events - The first class of every online Manhattan GMAT course is free. Classes start every week.
    ngalinh Rising GMAT Star Default Avatar
    Joined
    29 Jul 2010
    Posted:
    68 messages
    Followed by:
    1 members
    Thanked:
    3 times
    Target GMAT Score:
    700+
    Post Sun Sep 01, 2013 7:58 am
    Hi Ron,
    What did you "think" when you first read this passage? I find that if I don't use little space for thinking or imagination while reading, I can't get anything clear when I answer questions. For a short-dense passage like this, I read "in points" as I do below: (I mean I stop to investigate author's thinking a bit after each quote)

    Quote:
    Many people believe that because wages are lower in developing countries than in developed countries, competition from developing countries in goods traded internationally will soon eliminate large numbers of jobs in developed countries.
    lower wage brings advantages for developing countries : not right!
    here I'm gonna tell you why (author's voice)

    Quote:
    Currently, developed countries' advanced technology results in higher productivity, which accounts for their higher wages. Advanced technology is being transferred ever more speedily across borders, but even with the latest technology, productivity and wages in developing countries will remain lower than in developed countries for many years because developed countries have better infrastructure and better-educated workers. When productivity in a developing country does catch up, experience suggests that wages there will rise.
    developed: high tech (1)--> high productivity (2)--> high wage (3)
    developing: has (1) doesn't mean has (2) and (3) (in comparison with developed ones), but has (2) means has (3).

    Quote:
    Some individual firms in developing countries have raised their productivity but kept their wages (which are influenced by average productivity in the country's economy) low. However, in a developing country's economy as a whole, productivity improvements in goods traded internationally are likely to cause an increase in wages.
    so what happens when developing countries has (2)? some drops of water can't fill up the river. This principle [has (2) means has (3)] applies to a whole economy.

    Quote:
    Furthermore, if wages are not allowed to rise, the value of the country's currency will appreciate, which (from the developed countries' point of view) is the equivalent of increased wages in the developing country. And although in the past a few countries have deliberately kept their currencies undervalued, that is now much harder to do in a world where capital moves more freely.
    another case in which the principle cannot be applied. But this case will no longer exist because of freely moving capitals.


    so, what do I think when I answer question?

    1. The passage suggests that if the movement of capital in the world were restricted, which of the following would be likely?

    --> think: capital can move, so can keep low wage when productivity's increasing.

    A Advanced technology could move more quickly from developed countries to developing countries.
    B Developed countries could compete more effectively for jobs with developing countries.
    C A country's average wages could increase without significantly increasing the sophistication of its technology or the value of its currency.
    D A country's productivity could increase without significantly increasing the value of its currency.
    E Workers could obtain higher wages by increasing their productivity.

    2. The primary purpose of the passage is to

    --> think: the purpose mostly lies in the first quote (with thinking).

    A identify the origin of a common misconception
    B discuss the implications of a generally accepted principle
    C present information relevant in evaluating a commonly held belief
    D defend a controversial assertion against a variety of counterarguments
    E explain under what circumstances a well-known phenomenon occurs



    how should I make my thinking process more efficient in this RC?

    GMAT/MBA Expert

    lunarpower GMAT Instructor
    Joined
    03 Mar 2008
    Posted:
    3361 messages
    Followed by:
    1326 members
    Thanked:
    2136 times
    GMAT Score:
    800
    Post Mon Sep 02, 2013 9:56 am
    ngalinh wrote:
    Hi Ron,
    What did you "think" when you first read this passage?
    interesting question -- i'll give it a shot.

    the most consistent thing about my "reading" of these passages is that, well, i don't really read them.
    i only look at the words for as long as it takes me to figure out what's basically going on with them ... and then i move on. (this isn't totally random; i actually have pretty severe dyslexia, so, if i actually read through all the details, it could take me as long as ten minutes to get through a long passage.)

    Quote:
    Many people believe that because wages are lower in developing countries than in developed countries, competition from developing countries in goods traded internationally will soon eliminate large numbers of jobs in developed countries.
    ^^
    As soon as I see "Many people believe...", I know that the author is giving some idea that (s)he is going to argue AGAINST. (this is the only sensible reason why anyone would ever begin with "Lots of people think xxxxx" or "A common belief is xxxxx" -- so that they can argue against it.)

    So, all I get from this is ...
    * Idea
    * Waiting for a counter-argument.

    I don't even bother to try to understand what they're actually saying about wages and jobs, because (a) I don't read fast enough for that, and, much more importantly, (b) there's no reason to try to understand it anyway.

    Quote:
    Currently, developed countries' advanced technology results in higher productivity, which accounts for their higher wages. Advanced technology is being transferred ever more speedily across borders, but even with the latest technology, productivity and wages in developing countries will remain lower than in developed countries for many years because developed countries have better infrastructure and better-educated workers. When productivity in a developing country does catch up, experience suggests that wages there will rise.
    ok, so I see "currently, xxxx..."
    --> again, there's really only one context in which that would make sense: the current conditions are the reason WHY "many people believe" whatever the author said up there.

    So then the author is going to have to give some reason why those observations -- even though they are currently true -- don't have the consequences that "many people believe" they do.

    Again, I'm not going to take the time to understand the specifics.

    I did notice that "wages will rise" seems to be a cornerstone of the author's argument.


    Quote:
    Some individual firms in developing countries have raised their productivity but kept their wages (which are influenced by average productivity in the country's economy) low. However, in a developing country's economy as a whole, productivity improvements in goods traded internationally are likely to cause an increase in wages.
    Blah blah blah same thing as before.

    Again, I notice that the author points to a likely increase in wages. Hmm.


    Quote:
    Furthermore, if wages are not allowed to rise, the value of the country's currency will appreciate, which (from the developed countries' point of view) is the equivalent of increased wages in the developing country. And although in the past a few countries have deliberately kept their currencies undervalued, that is now much harder to do in a world where capital moves more freely.
    ^^ Furthermore... --> More evidence to support the point(s) that the author has already made.

    Without going into the details, it seems like the author is saying, "Hey, my prediction is going to happen one way or the other." In other words, the author is saying that, if x doesn't happen, then y will happen instead -- and, either way, my prediction will come true.


    that's what i get.

    _________________
    Ron is a Director of Curriculum Development at Manhattan GMAT. He has been teaching various standardized tests for 20 years.

    --

    Pueden hacerle preguntas a Ron en castellano
    Potete chiedere domande a Ron in italiano
    On peut poser des questions à Ron en français
    Voit esittää kysymyksiä Ron:lle myös suomeksi

    --

    Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.

    Yves Saint-Laurent

    --

    Learn more about ron

    Free Manhattan GMAT online events - The first class of every online Manhattan GMAT course is free. Classes start every week.

    GMAT/MBA Expert

    lunarpower GMAT Instructor
    Joined
    03 Mar 2008
    Posted:
    3361 messages
    Followed by:
    1326 members
    Thanked:
    2136 times
    GMAT Score:
    800
    Post Mon Sep 02, 2013 9:59 am
    ok, main idea question first.

    Quote:
    2. The primary purpose of the passage is to

    --> think: the purpose mostly lies in the first quote (with thinking).

    A identify the origin of a common misconception
    B discuss the implications of a generally accepted principle
    C present information relevant in evaluating a commonly held belief
    D defend a controversial assertion against a variety of counterarguments
    E explain under what circumstances a well-known phenomenon occurs
    so yeah, when it comes to main idea questions, the answer choices are not your friend. just ignore them, make a prediction, and then check for your prediction.

    from what i wrote above, my prediction looks something like this:

    * present a way lots of people think about ... something
    * give the evidence / reasons why they think that way
    * view the same evidence in a different way
    * give more evidence that suggests that "many people" are actually wrong.

    ok... let's look at the choices. looks like (c).

    _________________
    Ron is a Director of Curriculum Development at Manhattan GMAT. He has been teaching various standardized tests for 20 years.

    --

    Pueden hacerle preguntas a Ron en castellano
    Potete chiedere domande a Ron in italiano
    On peut poser des questions à Ron en français
    Voit esittää kysymyksiä Ron:lle myös suomeksi

    --

    Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.

    Yves Saint-Laurent

    --

    Learn more about ron

    Thanked by: ngalinh
    Free Manhattan GMAT online events - The first class of every online Manhattan GMAT course is free. Classes start every week.

    GMAT/MBA Expert

    lunarpower GMAT Instructor
    Joined
    03 Mar 2008
    Posted:
    3361 messages
    Followed by:
    1326 members
    Thanked:
    2136 times
    GMAT Score:
    800
    Post Mon Sep 02, 2013 10:06 am
    now, detail question

    Quote:
    1. The passage suggests that if the movement of capital in the world were restricted, which of the following would be likely?
    ... ok, i need to go FIND the part about "restrictions on the movement of capital".
    remember, i don't even know what any of the details actually say, so this is pretty much a blind hunt. (on the other hand, i got through the passage in about 1 minute -- because i wasn't reading any of the details -- so i have plenty of time to go find stuff.)

    so... the only place where i see "movement of capital" is at the very end.
    at the very end, it says, basically, "If capital can move freely, then it's hard to keep currency undervalued."

    so...
    if there ARE restrictions, then, accordingly, it should be easier for countries to keep their currency undervalued.

    the only remaining question is, what type of situation are we talking about here in the first place? (there must be something going on; countries don't "try to keep their currency undervalued" completely at random.)
    looking back a few lines, i notice that we're talking about the situation that ensues when there are "productivity improvements in goods traded internationally".

    ok, so that's pretty much the entire universe of possible answers to this question: "Countries can still keep their currencies undervalued when there are improvements in productivity."

    ... now look at the choices.

    (d)
    win.

    _________________
    Ron is a Director of Curriculum Development at Manhattan GMAT. He has been teaching various standardized tests for 20 years.

    --

    Pueden hacerle preguntas a Ron en castellano
    Potete chiedere domande a Ron in italiano
    On peut poser des questions à Ron en français
    Voit esittää kysymyksiä Ron:lle myös suomeksi

    --

    Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.

    Yves Saint-Laurent

    --

    Learn more about ron

    Thanked by: ngalinh, buoyant
    Free Manhattan GMAT online events - The first class of every online Manhattan GMAT course is free. Classes start every week.
    ngalinh Rising GMAT Star Default Avatar
    Joined
    29 Jul 2010
    Posted:
    68 messages
    Followed by:
    1 members
    Thanked:
    3 times
    Target GMAT Score:
    700+
    Post Mon Sep 02, 2013 12:01 pm
    Thanks RON!
    that's interesting. You seem to think more than read (reasoning to predict where things will go)
    structure + prediction + hunting details...humm.
    what happens if details form a chain of logic in which you won't get 2nd if you don't get 1st? I'll try this method to see how it works though.



    Last edited by ngalinh on Mon Sep 02, 2013 12:04 pm; edited 1 time in total

    Best Conversation Starters

    1 melanie.espeland 28 topics
    2 aditya8062 18 topics
    3 Rastis 14 topics
    4 chacha0212 13 topics
    5 yadu9991 12 topics
    See More Top Beat The GMAT Members...

    Most Active Experts

    1 image description GMATGuruNY

    The Princeton Review Teacher

    104 posts
    2 image description Brent@GMATPrepNow

    GMAT Prep Now Teacher

    82 posts
    3 image description CriticalSquareMBA

    Critical Square

    55 posts
    4 image description MBAPrepAdvantage

    MBAPrepAdvantage

    24 posts
    5 image description Jon@Admissionado

    Admissionado

    20 posts
    See More Top Beat The GMAT Experts