RC question - need help

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RC question - need help

by crak.gmat » Sat Sep 06, 2008 2:40 pm
see attached and respond with a suitable explanation

OA: D
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by working_hard_on_gmat » Wed Sep 10, 2008 4:22 am
hi,

If movement of capital is restricted then the direct impact is that currencies can be kept easily undervalued. But this is not in any one of the answers. Looking a bit further in the passage we find that developing countries raised the productivity but kept the wages low. Thus the wages were low and currencies undervalues the result is answer D :)