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Consider the information provided in the figure below relating to India's foreign trade in 1997-98 and the first eight months of 1998-99.
Total trade with a region is defined as the sum of exports to and imports from that region.
Trade deficit is defined as the excess of imports over exports. Trade deficit may be negative.
A:USA. B:Germany C:Other EU. D:U.K. E:Japan F:Russia
G:Other East Europe H:OPEC I:Asia J:Other LDCs K:Others
In 1997-98, the trade deficit with respect to India, in billions of US $, for the region with the highest trade deficit with respect to India, is approximately equal to
In order to find the trading partner with the highest trade deficit, we have to look for countries from whom India imported a lot but exported little.
The two countries which are important here are G and H. However, the exports to both are the same. But the imports from H are more than the imports from G.
So, the trading partner with whom India has the highest trade deficit is H.
The amount of trade deficit equals 23%*40779 - 10%*33979 = 5981 mio ~ 6 bn
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