CAT 2025 Slot 1 · DILR · Question 17

CAT 2025 Slot 1 previous year question on Mixed DI (Radar, Triangular, Stock etc), with the answer and a step-by-step solution.

Mixed DI (Radar, Triangular, Stock etc)DATA INTERPRETATION -High LevelMultiple choiceMedium

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.

What is the trade surplus/trade deficit of India with UK?
  1. A
    Deficit of 15.0 Billion USD
  2. B
    Deficit of 10.0 Billion USD
  3. C
    Surplus of 10.0 Billion USD
  4. D
    Surplus of 15.0 Billion USD
Pick an option, then check.
Answer & solution

Answer: Option A

The trade surplus of India with the UK is India's exports to the UK minus India's imports from the UK.

India's exports to the UK are the UK's imports from India, so read the UK's tariff on India.

That is 3 billion at 30%, giving \frac{3}{0.30}=10 billion.

India's imports from the UK come from India's own tariff on the UK.

That is 5 billion at 20%, giving \frac{5}{0.20}=25 billion.

The balance is 10-25=-15 billion USD.

A negative surplus is a deficit, so India runs a deficit of 15.0 billion USD with the UK — the first option.

Shortcut. The two directions of a single trading pair use the two different countries' tariffs, so each pair gives two readings. Here the UK's low 20% rate on a 5 billion tariff is what makes India's imports so much larger.

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