XAT 2012 Question 18

Question 18

Most of the Asian countries have trade-deficit with China. Bangladesh’s trade deficit with China this year has increased by 35%. Despite large increases in exports to China, Indonesia’s trade deficit with China continues to increase. So does that of South Korea, home of Samsung Electronics, one of the world’s largest manufacturers of electronic gadgets.
Which of the following, if true, would be most inconsistent with the above passage?

Solution

In the given paragraph, it has been mentioned that exports to China from Indonesia has increased significantly. At the same time the trade deficit of Indonesia with China has widened. Trade deficit is exports minus imports. If the trade deficit has widened then the imports should have increased at a higher rate as compared to the exports. 

So, option C which mentions the decrease in exports to Indonesia from china is inconsistent with the information given in the passage.
Hence, option C is the correct answer.



Create a FREE account and get:

  • All Quant Formulas and shortcuts PDF
  • 40+ previous papers with solutions PDF
  • Top 500 MBA exam Solved Questions for Free

    Comments

    Register with

    OR

    Boost your Prep!

    Download App