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 Â
G:Other East Europe  H:OPEC  I:Asia  J:Other LDCs  K:OthersÂ
What is the region with the lowest trade deficit with India in 1997-98?
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  19%*33979 - 9%*40779  = 2.78 billion
Trade deficit of I with India in 1997-98 is  20%*33979 - 14%*40779 = 1.08 billion
Hence, the country with the least trade deficit is country A or USA
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