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This is a great explanation. I logically chose E because it is an alternate solution, as opposed to the answer which weakens the argument. The reasoning you gave makes it perfectly clear why it should be B. Thanks!
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Bold claim :-)
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This is a great explanation. I logically chose E because it is an alternate solution, as opposed to the answer which weakens the argument. The reasoning you gave makes it perfectly clear why it should be C. Thanks!

The correct answer is B.

As Mark states, C is irrelevant because it states IF this happens, which does not help weaken the argument. Make sure you understand the reasoning!

Hopefully you just typed the wrong letter. :)
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Hi Mark ... great explanation. But I could not get why B is correct. While going through the question, I did not think that there is any option that could actually weaken the pol's recommendation. I am writing my understanding. Please guide me if you see any flaw.

Premise 1 - 12 & 5 years ago, the pundra was weak (I guess extensive period means a good amount of time during the aforesaid 2 years).
Premise 2 - Other currencies were a lot higher.
Result of 2 premises - weak pundra made Darfir's products cheaper globally and hence exports of such products increased.
Conclusion (by pols) - govt shall make pundra weak again and exports will increase by the same magnitude.

Now, A strengthens. D strengthens, E is irrelevant because we have to weaken the conclusion rather than look for an alternative.
C talks about economy but we are concerned about exports.
Finally, B says that the production is at near-peak level now, while 12 & 5 yrs ago, it was well below peak.

Where I got it wrong....
So what. Even though the prod is at peak (say), it can still export abroad the already manufactured goods, instead of selling them in the country. And who says that the products are actually getting sold. Even though the optimum cap has been achieved, the option does not talk about sale. Probably the product might not be getting sold locally, or, even if it is, why cannot they export?
I thought this actually strengthened because more the production, more the exports. For eg. say the optimum cap is 10000. 12 yrs ago, it produced 5000, 5 yrs ago 6000. Now, in this year, the prod is 9500.
This means that while Darfir could export only 5000 or 6000 earlier, now it can export 9500. Hence, weak currency will definitely help. The country has more to export. Hence, strengthen.
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Hi Mark,

Please help me understand issues in the following line of reasoning regarding option B:-

Reasoning --> Goal is to increase exports. Just making the products doesnt mean that Darfir will be able to sell them.
To increase export we need both luctrative products (so that they get sold) and enough supply of those products to meet international demand

Option B states that manufacturing plants are running near full capacity - this might also be interpreted to say - Darfir has enough goods to sell in international markets (since plants are running near full capacity)

Conclusion --> Since Darfir now has enough products to sell, its even more a reason to depreciate currency so that products become lucrative in international market and are sold easily leading to increased exports.
Hence this choice might strenthen the reasoning that currency should be depreciated!!

Thnx in advance!!
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Hi Mark,

Please help me understand issues in the following line of reasoning regarding option B:-

Reasoning --> Goal is to increase exports. Just making the products doesnt mean that Darfir will be able to sell them.
To increase export we need both luctrative products (so that they get sold) and enough supply of those products to meet international demand

Option B states that manufacturing plants are running near full capacity - this might also be interpreted to say - Darfir has enough goods to sell in international markets (since plants are running near full capacity)

Conclusion --> Since Darfir now has enough products to sell, its even more a reason to depreciate currency so that products become lucrative in international market and are sold easily leading to increased exports.
Hence this choice might strenthen the reasoning that currency should be depreciated!!

Thnx in advance!!

Option B says that the plants are operating at full capacity which means they have enough goods to sell. You don't have to depreciate your currency and force a sale. Factories operate at near full capacity when there's demand (this is an inherent assumption).
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rohantiwari
Hi Mark,

Please help me understand issues in the following line of reasoning regarding option B:-

Reasoning --> Goal is to increase exports. Just making the products doesnt mean that Darfir will be able to sell them.
To increase export we need both luctrative products (so that they get sold) and enough supply of those products to meet international demand

Option B states that manufacturing plants are running near full capacity - this might also be interpreted to say - Darfir has enough goods to sell in international markets (since plants are running near full capacity)

Conclusion --> Since Darfir now has enough products to sell, its even more a reason to depreciate currency so that products become lucrative in international market and are sold easily leading to increased exports.
Hence this choice might strenthen the reasoning that currency should be depreciated!!

Thnx in advance!!

Option B says that the plants are operating at full capacity which means they have enough goods to sell. You don't have to depreciate your currency and force a sale. Factories operate at near full capacity when there's demand (this is an inherent assumption).


That's why GMAT is full of different assumptions and interpretations. Questions should be totally clear. For me this one is not.

Here what is needed is a way to oppose the idea that currency depreciation wont increase sales abroad, otherwise currency woudnt be a problem. Nothing is said about were the products could be shipped. They have the factory at full capacity, they have products and they can start to sell abroad if the market is competitive. Hence they can stop selling in other places. People is right to think that this could support the politicians.
In other hand this would be a good explanation for justifying that this option was incorrect if another better than this was available. Ok, it could be the difficulty of this kind of questions, but the options should be clear and not so ambiguous.
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Thanks for the in-depth explanation Mark.

I was confused between B and E, but the idea that I have to weaken an existing argument and not present an alternative plan to the argument is absolutely spot on.

Are you aware of any similar questions?
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Hi,
This kind of question is has a cause effect realtionship: if the country weakens the currency-> exports will increase. I thought that one of the possibilities to weaken this kind of questions is to find an alternative cause that will lead to the same effect.

Hence, I think that answer E (A sharp improvement in the efficiency of Darfir’s manufacturing plants would make Darfir’s products a bargain on world markets even without any weakening of the pundra relative to other currencies) provides an alternitve cause to reach the same effect ("increase exports"). Where I am wrong?

Answer B (After several decades of operating well below peak capacity, Darfir’s manufacturing sector is now operating at near-peak levels) streghtens the argument, because if they are doing great now, it is an input that the goverment plan works out?

Thank youu
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Thanks DmitryFarber for this detailed response.

I am a bit confused if the plan has already been enacted i.e., the government has allowed the Pundra to become weak again.

In this case, how option B would have been a strengthener? My reasoning is near peak production level would have decreased my confidence that exports will rise. Please let me know what I am missing here. It's a hypothetical question but good for my learning.

DmitryFarber
This is actually not a causal argument. The argument simply grants that the weakened currency was the cause before. The issue now is not about cause, but whether a move to weaken currency would strengthen imports at this time. This is a plan argument, so to weaken it, we need to find something that will [i]prevent[/i] the plan from having the desired effect, not something else that would cause the same effect.

Imagine that I said "Last time I wanted to learn a language, I spent time in a country where it was spoken. I want to learn Japanese now, so I should move to Japan." Could you weaken the argument by saying "You could learn Japanese by hiring a tutor and not moving"? No! Without any additional information on why this method would be preferable to the other, I have no reason to change my plan. Note that it would be different if you pointed out some benefit of your plan, such as reduced cost or increased efficiency.

In the case of answer E, we have the same problem. Would this increase be easier to achieve? Is it even possible? And if it is possible, do we have reason to believe that it's a better way to reach the goal? If the answer had said that this increase was *already happening* and thus rendered a weakening of the currency unnecessary, that would be another story.

As for B, the idea is that if the manufacturing sector is operating at peak levels, then the country may not be able to meet any additional demand for exports. We're even told that this was *not* the case before, so we have a key difference. B does not imply that the plan is going well, because the plan hasn't happened yet!

So, a word of caution here: watch out for whether the events under discussion are past events, current events, or (hypothetical) future events! B would be a strengthen if the plan had already been enacted, but since the plan hasn't been enacted yet, it's a weaken. Similarly, E would be a weaken if the efficiency were already increasing, but since this is just a hypothetical ("If X happened, Y would be the result"), it's of no use to us.
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I think we're seeing the same thing from two different directions. My point was that if we were trying to assess the success of a plan to increase exports by weakening the currency, B might be a good sign of success. We might see the current peak production as evidence that the action were working to increase exports. True, they might not go up MORE from that point, but they might be higher than they were before, so it could show that the plan was working. But given that the plan is not yet in place, B makes us wonder whether there is any scope to increase exports from here.
agrasan
Thanks DmitryFarber for this detailed response.

I am a bit confused if the plan has already been enacted i.e., the government has allowed the Pundra to become weak again.

In this case, how option B would have been a strengthener? My reasoning is near peak production level would have decreased my confidence that exports will rise. Please let me know what I am missing here. It's a hypothetical question but good for my learning.

DmitryFarber
This is actually not a causal argument. The argument simply grants that the weakened currency was the cause before. The issue now is not about cause, but whether a move to weaken currency would strengthen imports at this time. This is a plan argument, so to weaken it, we need to find something that will [i]prevent[/i] the plan from having the desired effect, not something else that would cause the same effect.

Imagine that I said "Last time I wanted to learn a language, I spent time in a country where it was spoken. I want to learn Japanese now, so I should move to Japan." Could you weaken the argument by saying "You could learn Japanese by hiring a tutor and not moving"? No! Without any additional information on why this method would be preferable to the other, I have no reason to change my plan. Note that it would be different if you pointed out some benefit of your plan, such as reduced cost or increased efficiency.

In the case of answer E, we have the same problem. Would this increase be easier to achieve? Is it even possible? And if it is possible, do we have reason to believe that it's a better way to reach the goal? If the answer had said that this increase was *already happening* and thus rendered a weakening of the currency unnecessary, that would be another story.

As for B, the idea is that if the manufacturing sector is operating at peak levels, then the country may not be able to meet any additional demand for exports. We're even told that this was *not* the case before, so we have a key difference. B does not imply that the plan is going well, because the plan hasn't happened yet!

So, a word of caution here: watch out for whether the events under discussion are past events, current events, or (hypothetical) future events! B would be a strengthen if the plan had already been enacted, but since the plan hasn't been enacted yet, it's a weaken. Similarly, E would be a weaken if the efficiency were already increasing, but since this is just a hypothetical ("If X happened, Y would be the result"), it's of no use to us.
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