CAT 2025 Slot 1 · DILR · Question 16
CAT 2025 Slot 1 previous year question on Mixed DI (Radar, Triangular, Stock etc), with the answer and a step-by-step solution.
Set 4: Import Tariffs Among Five Countries — this question belongs to a set. Read the full set with all 4 questions →
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.
- AImports by US from France
- BExports by France to Japan
- CExports by Japan to UK
- DImports by France from India
Answer & solution
Answer: Option A
Each option is a trade value, so convert each one using value = tariff ÷ percentage.
Imports by US from France use the tariff the US charges France: 6 billion at 20%, giving \frac{6}{0.20}=30 billion.
Exports by France to Japan are Japan's imports from France, so use Japan's tariff on France: 3 billion at 20%, giving \frac{3}{0.20}=15 billion.
Exports by Japan to UK are the UK's imports from Japan, so use the UK's tariff on Japan: 6 billion at 40%, giving \frac{6}{0.40}=15 billion.
Imports by France from India use France's tariff on India: 6.5 billion at 50%, giving \frac{6.5}{0.50}=13 billion.
The largest is 30 billion, so the answer is the first option.
Shortcut. Exports from X to Y always have to be read through Y's tariff on X, never X's own — getting that direction right is most of the battle. A low percentage on a decent tariff is what makes a big trade value, which points at the 20% entries first.
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