CAT 2025 Slot 3 · DILR · Question 15
CAT 2025 Slot 3 previous year question on Caselet Based DI, with the answer and a step-by-step solution.
Set 4: Trade Among Pumpland, Xiland and Cheeseland — this question belongs to a set. Read the full set with all 5 questions →
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.
How much is exported from P to ROW, in IC?
Answer & solution
Answer: 200
Let S = P's exports = 600 + 1200 + r, where r = P → ROW. P's balance is 0%, so P's imports also = S.
From fact 2: P's imports from X = 40% of X's exports = 22% of S, so X's exports E(X) = 0.55S.
X's balance is +10%, so X's imports = (9/11) × E(X) = 0.45S.
P's imports: from X (0.22S) + from C (720) + from ROW (40% of ROW's exports, 0.4R) = S, so 0.4R = 0.78S − 720, i.e. R = 1.95S − 1800.
X's imports: from P (600) + from C (48) + from ROW (12% of R) = 0.45S, so 648 + 0.12(1.95S − 1800) = 0.45S. That gives 648 + 0.234S − 216 = 0.45S, so 0.216S = 432 and S = 2000.
P → ROW: r = 2000 − 1800 = 200.
Shortcut: write P's and X's imports in terms of S = P's exports; the two equations give S = 2000 directly.
Hence, the answer is 200.
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