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Re: The exchange rate between the currency of Country X and that of Countr [#permalink]
I didn't select D because of the word "imported", imported doesn't seem to be appropriate here.
Import generally means to import things from different country while you are still in your country, but when you are visiting a different country and bringing something then that doesn't comes under "imported".
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Re: The exchange rate between the currency of Country X and that of Countr [#permalink]
Patronus wrote:
Paradox: Even though some stuff is cheaper in X, people of Y don't buy them!

A. Citizens of Country Y prefer the fashions available in their own country.
So how does that explain why citizens of country Y do NOT buy cheaper stuff from X?
No where it is mentioned that X has outdated fashion!


B. Stores in Country X receive the latest fashions and technology several months after they are available in Country Y.
Ok, so the stuff arrives a bit late in country X, but no where it is mentioned that citizens of country Y will buy only if it is new or something they have not seen in their country before.

C. The citizens of Country X resent the buying power of the currency of Country Y.
Country X is resenting the buying power, but this gap in currency value should infact encourage the citizens of country Y to buy more stuff from country X!

D. The government of Country Y imposes tariffs on imported goods.
When the citizens come back from holidays, with all their souvenirs such as a hat or a new ipod, they are taxed by their own government!
Please note that we have to assume that they are taxed in a way that it surcharge surpasses that of price of same stuff in country Y including the sales tax.


E. The currencies of Country X and Country Y are both weak compared to the currency of Country Z.
Relation to Country Z (outside and irrelevant information) adds nothing to solve this paradox

­
How can buying goods from another country count as "import"?
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Re: The exchange rate between the currency of Country X and that of Countr [#permalink]
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