Question

Suppose that the countries of Brazil, Argentina, Ecuador, and Venezuela have interdependent economies. The following table shows the imports and exports between each of these countries. All prices are given in millions of equivalent US dollars.

Country of Origin
Exporting to
Amount ($ 2007-13-04-00-00_files/i0160000.jpg1,000,000)
Brazil
Argentina
4,691
Brazil
Ecuador
4,791
Brazil
Venezuela
1,526
Argentina
Brazil
1,881
Argentina
Ecuador
1,971
Argentina
Venezuela
2,153
Ecuador
Brazil
3,106
Ecuador
Argentina
3,672
Ecuador
Venezuela
2,018
Venezuela
Brazil
4,535
Venezuela
Argentina
1,577
Venezuela
Ecuador
1,871

If these four countries trade only within this group, what is the difference between the highest balance of trade and the lowest balance of trade?
a.
$6,221,000,000
b.
$5,003,000,000
c.
$3,772,000,000
d.
$2,123,000,000


Please select the best answer from the choices provided

A
B
C
D
Mark this and return

Answer 1

Compute each country's exports minus imports.

Totals:
- Brazil exports = 4,691 + 4,791 + 1,526 = 11,008; imports = 1,881 + 3,106 + 4,535 = 9,522; balance = 1,486
- Argentina exports = 1,881 + 1,971 + 2,153 = 6,005; imports = 4,691 + 3,672 + 1,577 = 9,940; balance = -3,935
- Ecuador exports = 3,106 + 3,672 + 2,018 = 8,796; imports = 4,791 + 1,971 + 1,871 = 8,633; balance = 163
- Venezuela exports = 4,535 + 1,577 + 1,871 = 7,983; imports = 1,526 + 2,153 + 2,018 = 5,697; balance = 2,286

Highest balance = 2,286 (Venezuela); lowest = -3,935 (Argentina). Difference = 2,286 - (−3,935) = 6,221 million = $6,221,000,000.

Answer: A.