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?
a. Citizens of Country Y prefer the fashions available in their own country.
b. Stores in Country X receive the latest fashions and technology several months after they are available in Country Y.
c. The citizens of Country X resent the buying power of the currency of Country Y.
d. The government of Country Y imposes tariffs on imported goods.
e. The currencies of Country X and Country Y are both weak compared to the currency of Country Z.
Country X and Country Y
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I will choose D
a. Citizens of Country Y prefer the fashions available in their own country.
What about electronics? Very narrow. OUT
b. Stores in Country X receive the latest fashions and technology several months after they are available in Country Y.
Ok, so what? Does this influence on purchase? Not necesserily
c. The citizens of Country X resent the buying power of the currency of Country Y.
Irrelevent
d. The government of Country Y imposes tariffs on imported goods.
That's why people from C Y do not buy goods in C X. Take it.
e. The currencies of Country X and Country Y are both weak compared to the currency of Country Z.
Irrelevant.
a. Citizens of Country Y prefer the fashions available in their own country.
What about electronics? Very narrow. OUT
b. Stores in Country X receive the latest fashions and technology several months after they are available in Country Y.
Ok, so what? Does this influence on purchase? Not necesserily
c. The citizens of Country X resent the buying power of the currency of Country Y.
Irrelevent
d. The government of Country Y imposes tariffs on imported goods.
That's why people from C Y do not buy goods in C X. Take it.
e. The currencies of Country X and Country Y are both weak compared to the currency of Country Z.
Irrelevant.
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Thanls 4meonly.
Actually, I am still not convinced as to why B can't be the answer. Since the stuff in country x is old fashioned, tourists from country y don't buy it.
What's wrong with this logic?
Actually, I am still not convinced as to why B can't be the answer. Since the stuff in country x is old fashioned, tourists from country y don't buy it.
What's wrong with this logic?
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I can infer that I was correct with D
I will not say that B is absolutely incorrect in real life, but in GMAT world this answer is incorrect.
Answer D does not need any assumptions
The more straitforward logic the better.
Yes, you are correct. But to make this logic correct you must be sure that tourists from CY are interested in new-fashioned stuff. There is no any evidence for it in the stimulus. You are assuming that they are interested, but you should not do so.Since the stuff in country x is old fashioned, tourists from country y don't buy it
I will not say that B is absolutely incorrect in real life, but in GMAT world this answer is incorrect.
Answer D does not need any assumptions
The more straitforward logic the better.
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(D)
Drill baby drill !
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GMATPowerPrep Test1= 740
GMATPowerPrep Test2= 760
Kaplan Diagnostic Test= 700
Kaplan Test1=600
Kalplan Test2=670
Kalplan Test3=570