Question

If exports to Korea from China forms 80% of the exports to Asia and imports from Korea forms 73% of import from Asia then trade balance of China as defined earlier with Korea is

• A. 960000 mn deficit
• B. 450000 mn deficit
• C. 630000 mn deficit
• D. Can't say

Answer 1

The correct option is C

630000 mn deficit

Strategy- Change the scale to minimize calculation

From both Import and Export figures, strike out the last 4 digits = 1750 & 1400 approximately

The answer options are far apart, therefore we can easily approximate.

$\begin{array}{ccc}China& Imports\left(1750\right)& Exports\left(1400\right)\\ Asia\left(40\%\right)& 1750\times 40\%=700& 1400\times 40\%=560\\ Korea(73\%,80\%)& 700\times 73\%=511& 560\times 80\%=448\end{array}$

Trade Deficit= Import- Export = 511 - 448$\approx$63. Hence answer is option (c)