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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 order to find the country which has the least trade deficit with India, we have to look for countries whom India exported a lot and imported less.
The only two countries which fit the bill are countries A and I.
Trade deficit of A with India in 1997-98 is 9%*40779 - 19%*33979 = -2.78 billion
Trade deficit of I with India in 1997-98 is 14%*40779 - 20%*33979 = -1.08 billion
Hence, the country with the least trade deficit is country A or USA
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