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CAT 2025Slot 1DILRQues & Sol

Data InterpretationMedium

Data Set

Five countries engage in trade with each other. Each country levies import tariffs on the other countries. The import tariff levied by Country X on Country Y is calculated by multiplying the corresponding tariff percentage with the total imports of Country X from Country Y.

The radar chart below depicts different import tariff percentages charged by each of the five countries on the others. For example, US (the blue line in the chart) charges 20%, 40%, 30%, and 30% import tariff percentages on imports from France, India, Japan, and UK, respectively. The bar chart depicts the import tariffs levied by each country on other countries. For example, US charged an import tariff of 3 billion USD on UK.

Import tariff charts

Assume that imports from one country to another equals the exports from the latter to the former.

The trade surplus of Country X with Country Y is defined as follows.
Trade surplus = Exports from Country X to Country Y - Imports to Country X from Country Y.

A negative trade surplus is called trade deficit.

Question 1

How much is Japan's export to India worth?

Solution

1. Setup

We use the relationship:

$$ \text{Import Value}= \frac{\text{Import Tariff Amount}}{\text{Import Tariff Percentage}} $$

Since imports by one country are equal to exports by the other country:

$$ \text{Japan's exports to India}=\text{India's imports from Japan} $$

From the charts:

ParticularValue
Tariff levied by India on Japan8 billion USD
Tariff percentage levied by India on Japan50%

2. Solution

India's import tariff on goods from Japan is 8 billion USD, which represents 50% of the value of imports.

Therefore:

Import Value = 8 ÷ 50%

= 8 ÷ 0.5

= 16 billion USD

Since India's imports from Japan are equal to Japan's exports to India:

Japan's exports to India = 16 billion USD

3. Final Answer

Answer = Option B ✅

Japan's exports to India are worth 16.0 Billion USD.

Question 2

Which among the following is the highest?

Solution

1. Setup

Use the formula:

Trade Value = Tariff Amount ÷ Tariff Percentage

We calculate the trade value corresponding to each option.

2. Solution

OptionTrade FlowCalculationTrade Value
AExports by Japan to UK3 ÷ 40%7.5 billion USD
BImports by US from France6 ÷ 20%30.0 billion USD
CExports by France to Japan3 ÷ 30%10.0 billion USD
DImports by France from India6.5 ÷ 40%16.25 billion USD

Comparing the four values:

7.5, 30.0, 10.0, and 16.25 billion USD

The highest value is 30.0 billion USD, corresponding to imports by the US from France.

3. Final Answer

Answer = Option B ✅

Imports by US from France is the highest, with a value of 30.0 billion USD.

Question 3

What is the trade surplus/trade deficit of India with UK?

Solution

1. Setup

India's trade surplus with the UK is:

Trade Surplus = Exports from India to UK − Imports to India from UK

Use:

Trade Value = Tariff Amount ÷ Tariff Percentage

2. Solution

Step 1: Calculate India's Exports to the UK

India's exports to the UK are equal to the UK's imports from India.

  • Tariff levied by UK on India = 5.0 billion USD
  • Tariff percentage = 20%

Exports from India to UK = 5.0 ÷ 20%

= 5.0 ÷ 0.20

= 25.0 billion USD

Step 2: Calculate India's Imports from the UK

India's imports from the UK are equal to the UK's exports to India.

  • Tariff levied by India on UK = 3.0 billion USD
  • Tariff percentage = 20%

Imports from UK = 3.0 ÷ 20%

= 3.0 ÷ 0.20

= 15.0 billion USD

Step 3: Calculate the Trade Balance

Trade Balance = Exports − Imports

= 25.0 − 15.0

= 10.0 billion USD

Since the value is positive, India has a trade surplus with the UK.

3. Final Answer

Answer = Option C ✅

India has a surplus of 10.0 Billion USD with the UK.

Question 4

Among France and UK, who has/have trade surplus(es) with US?

Solution

1. Setup

Trade Balance = Exports to US − Imports from US

Use:

Trade Value = Tariff Amount ÷ Tariff Percentage

We calculate the trade balance of France and the UK with the US.

2. Solution

France

Exports from France to US

US's tariff on France = 6.0 billion USD
Tariff percentage = 20%

Exports = 6.0 ÷ 20%

= 6.0 ÷ 0.20

= 30.0 billion USD

Imports by France from US

France's tariff on US = 5.5 billion USD
Tariff percentage = 30%

Imports = 5.5 ÷ 30%

= 5.5 ÷ 0.30

= 18.33 billion USD

Therefore:

Trade Balance = 30.0 − 18.33

= 11.67 billion USD

France has a trade surplus with the US.

UK

Exports from UK to US

US's tariff on UK = 3.0 billion USD
Tariff percentage = 30%

Exports = 3.0 ÷ 30%

= 10.0 billion USD

Imports by UK from US

UK's tariff on US = 2.5 billion USD
Tariff percentage = 20%

Imports = 2.5 ÷ 20%

= 12.5 billion USD

Therefore:

Trade Balance = 10.0 − 12.5

= −2.5 billion USD

UK has a trade deficit with the US.

Hence, only France has a trade surplus with the US.

3. Final Answer

Answer = Option D ✅

Only France has a trade surplus with the US.