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In this video, the presenter addresses the concept of project scope in project management. Project scope is defined as everything that a project manager must accomplish, represented by a circle in a visual metaphor. Everything within this circle is considered in scope, meaning it must be delivered. Conversely, anything outside the circle falls out of scope and does not need to be completed; these out-of-scope items may not be economically viable, necessary for the organization, or could be addressed by other projects later. The speaker emphasizes that negotiating and agreeing on the project scope is central to effective project management and poses significant challenges for project managers.