Instructions

Three countries - Pumpland (P), Xiland (X) and Cheeseland (C) - trade among themselves and with the (other countries in) Rest of World (ROW). All trade volumes are given in IC (international currency).

The following terminology is used:

• Trade balance = Exports - Imports

• Total trade = Exports + Imports

• Normalized trade balance = Trade balance / Total trade, expressed in percentage terms

The following information is known.

1. The normalized trade balances of P, X and C are 0%, 10%, and -20%, respectively.

2. 40% of exports of X are to P. 22% of imports of P are from X.

3. 90% of exports of C are to P; 4% are to ROW.

4. 12% of exports of ROW are to X, 40% are to P.

5. The export volumes of P, in IC, to X and C are 600 and 1200, respectively. P is the only country that exports to C.

Question 5.

Which among the countries P, X, and C has/have the least total trade?

A
Only C
B
Both X and C
C
Only X
D
Only P

Question Explanation

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