Question

Suppose that Bangladesh, India, Pakistan, and Nepal are economically interdependent. The following table shows the exports and imports of each country, with all monetary values given in millions of equivalent US dollars.

Country of Origin
Exporting to...
Amount ($ 2007-13-04-00-00_files/i0260000.jpg 1,000,000)
Bangladesh
India
2,817
Bangladesh
Pakistan
2,369
Bangladesh
Nepal
3,039
India
Bangladesh
2,023
India
Pakistan
3,462
India
Nepal
2,184
Pakistan
Bangladesh
3,201
Pakistan
India
2,336
Pakistan
Nepal
2,338
Nepal
Bangladesh
2,707
Nepal
India
3,363
Nepal
Pakistan
2,332

Based on the information in the table, assuming that these four countries trade strictly within the group, what is the value of the greatest trade balance in this group?
a.
$841 million
b.
$847 million
c.
$8,402 million
d.
$8,516 million


Please select the best answer from the choices provided

A
B
C
D

Answer 1

Compute each country's total exports and imports (all values in millions):

- Bangladesh: exports = 2,817+2,369+3,039 = 8,225; imports = 2,023+3,201+2,707 = 7,931; balance = 8,225 − 7,931 = +294
- India: exports = 2,023+3,462+2,184 = 7,669; imports = 2,817+2,336+3,363 = 8,516; balance = 7,669 − 8,516 = −847
- Pakistan: exports = 3,201+2,336+2,338 = 7,875; imports = 2,369+3,462+2,332 = 8,163; balance = 7,875 − 8,163 = −288
- Nepal: exports = 2,707+3,363+2,332 = 8,402; imports = 3,039+2,184+2,338 = 7,561; balance = 8,402 − 7,561 = +841

The greatest trade balance (largest surplus) is Nepal’s $841 million. Answer: A.