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 141

# Assume that the average monthly exports from India and imports to India during the remaining four months of 1998-99 would be the same as that for the first eight months of the year. What is the region to which India’s exports registered the highest percentage growth between1997-98 and 1998-99?

Solution

Since the increase in imports and exports is at average, the exports and imports in the next 4months will be half of their respective first eight months.

Exports in the first 8 months of 1998-1999 is \$21436 so, in the next 4 months it will be 21436/2 = 10718

Total exports= 21346+10718=32154.

Although total imports have been increased the percentage share for all is decreased expect A and G. This means surely one of A and G has the highest increase.

Percentage growth in exports of country A is (23%*32154 - 19%*33979)/19%*33979 = 14.5%
Percentage growth in exports of country G is (12%*32154 - 10%*33979)/10%*33979 = 13.5 %
Hence, the region to which Indian exports witnessed the highest percentage growth is region A i.e USA

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