Instructions

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 

Question 140

What is the region with the lowest trade deficit with India in 1997-98?

Solution

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

Video Solution

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