CAT 2025 DILR was similar to CAT 2022 in pattern. All the four sets had 5 questions this year too. There were 6 TITA Questions. Atleast two sets were doable in each slot and one of the four sets was extremely tough. Choice of Sets became a crucial factor. Overall this section was at a medium to high level of difficulty.
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 county on other
countries. For example, US charged import tariff of 3 billion USD on UK.
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 18 : Among France and UK, who has/have trade surplus(es) with US?
Each country charges an import tariff on every other country. The tariff amount is the tariff percentage multiplied by the value of imports. Therefore the basic conversion is:
Import value = Tariff collected ÷ Tariff percentage.
Also, imports by X from Y are exports by Y to X.
India charges Japan a 50% tariff and collects 3.5 billion USD. Hence
0.50 × imports by India from Japan = 3.5
so the import/export value is 7.0 billion USD.
Answer: 7.0 billion USD.
For France, exports to US = US imports from France = 6/20% = 30 billion. Imports by France from US = 5.5/30% = 18.33 billion. France therefore has a surplus of about 11.67 billion.
For UK, exports to US = US imports from UK = 3/30% = 10 billion. Imports by UK from US = 2.5/20% = 12.5 billion. UK therefore has a deficit of 2.5 billion.
Answer: Only France.
The question is " Among France and UK, who has/have trade surplus(es) with US? "
Choice 4 is the correct answer.
Copyrights © All Rights Reserved by 2IIM.com - A Fermat Education Initiative.
Privacy Policy | Terms & Conditions
CAT® (Common Admission Test) is a registered trademark of the Indian
Institutes of Management. This website is not endorsed or approved by IIMs.
2IIM Online CAT Coaching
A Fermat Education Initiative,
19/43, MG Chakrapani St,
Sathya Garden, Saligramam, Chennai 600 093
Mobile: (91) 99626 48484 / 94459
38484
WhatsApp: WhatsApp Now
Email: info@2iim.com