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# out of scope

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19 Jan 2011, 00:26
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Hi guys,

When do you know when something is REALLY out of scope, OR it is still related even if not directly.

In a problem I tackled - this is not paraphrased well.

In two different years in the past, when the currency of X is weak. Exported goods become cheaper and exports of country X rise. So to increase exports we must make our currency weak.

Which option casts the most doubt to the success of this strategy?

And the answer was b. Manufacture of the exported goods has been at peak levels this year than it was in the past.

I automatically though this was out of scope.

Sorry I did not copy the actual problem. But I hope you could share some insights on how do you draw the line between what is out of scope and what isn't thanks!
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21 Jan 2011, 10:50
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22 Jan 2011, 09:25
When exporters of the country are already at peak levels, you can devaluate the currency, but they will not have capacity to produce more, as they already produce as much as they can. They just do not have the capacity for it, and it would take some time until they build it.

Do you understand it now?

But please post the whole question.
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Re: out of scope   [#permalink] 22 Jan 2011, 09:25
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