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by vikram_k51 » Thu Aug 13, 2009 11:48 am
The exchange rate between the currency of Country X and that of Country Y has historically favored the currency of Country Y. Because of this, citizens of Country Y often take their vacations in Country X, where the exchange rate makes hotels and restaurants more affordable. Yet, citizens of Country Y rarely purchase clothing or electronics in Country X, despite the fact that those items are more expensive in their home country, even when sales taxes are taken into account.

Which of the following, if true, would best explain the buying habits of the citizens of Country Y?
Citizens of Country Y prefer the fashions available in their own country.
Stores in Country X receive the latest fashions and technology several months after they are available in Country Y.
The citizens of Country X resent the buying power of the currency of Country Y.
The government of Country Y imposes tariffs on imported goods.
The currencies of Country X and Country Y are both weak compared to the currency of Country Z.
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D

by kc_raj » Thu Aug 13, 2009 1:17 pm
IMHO D
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by riteshbindal » Thu Aug 13, 2009 1:46 pm
Confused between B and D. Both look right.
But I will go with D, as we are talking about money here and not interest.
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by arorag » Thu Aug 13, 2009 4:08 pm
will go with D
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by sbasha » Thu Aug 13, 2009 7:51 pm
B and D are close.

I chose D coz, B says fashion and tech will arrive late in country "X", and I'm bit skeptical to equate "electronics" to fashion and tech , If at all we need to mean it literally.
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by vikram_k51 » Fri Aug 14, 2009 2:20 am
OA is D
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by mehravikas » Sat Sep 26, 2009 3:40 pm
Sorry guys for opening an old thread. But I disagree with the OA.

The passage indicates that citizens of country Y do not buy clothes or electronics from country X, despite the weak dollar of country X.

'D' says that country Y imposes tariffs on imported goods.

How can the goods be considered imported goods if someone has visited country X and has purchased goods from there.

To me imported means "you are buying something from another country" however citizens of country y are buying goods when they visit country x, so it means they are buying "goods in that country"

Please correct me if I am wrong.
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by mehravikas » Sat Sep 26, 2009 3:48 pm
Just to add on, if the argument were restricted to electronics, option 'D' would have made sense. But how can you impose tariff on clothing?

Happy to discuss... :-)
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by james33 » Sun May 15, 2016 9:42 pm
I will Go with option D in this case.
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