DILR SET | Graphs Modern Type | Tariff Radar & Bar Chart | CAT 2025 Slot 1 | Moderate
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.
1. Which among the following is the highest?
1. Exports by France to Japan
2. Imports by US from France
3. Exports by Japan to UK
4. Imports by France from India
2. What is the trade surplus/trade deficit of India with UK?
1. Surplus of 15.0 Billion USD
2. Deficit of 10.0 Billion USD
3. Surplus of 10.0 Billion USD
4. Deficit of 15.0 Billion USD
3. How much is Japan’s export to India worth?
1. 8.5 Billion USD
2. 1.75 Billion USD
3. 16.0 Billion USD
4. 7.0 Billion USD
4. Among France and UK, who has/have trade surplus(es) with US?
1. Only France
2. Both France and UK
3. Neither France nor UK
4. Only UK
Solutions Graphs Modern Type | Tariff Radar & Bar Chart | CAT 2025 Slot 1 | Moderate
Converting Graphs to table for ease of reading
Bar Graph: Import Tarrifs in billion USD charged by each country on other Countries
Table A: Import Tariffs Collected (in Billion USD) (Row = Exporter, Column = Importer)
| Exporter \ Importer | US | France | India | Japan | UK |
| US | – | 5.5 | 9 | 4 | 2.5 |
| France | 6 | – | 5 | 3 | 4 |
| India | 4.5 | 6.5 | – | 8 | 3 |
| Japan | 7 | 4 | 3.5 | – | 6 |
| UK | 3 | 4.5 | 5 | 3 | – |
Radar chart: Import Tariff percentage changed by each country on other countries
Table B: Tariff Percentage Rates (%) (Row = Exporter, Column = Importer)
| Exporter \ Importer | US | France | India | Japan | UK |
| US | – | 30 | 40 | 40 | 20 |
| France | 20 | – | 50 | 30 | 30 |
| India | 40 | 40 | – | 50 | 30 |
| Japan | 30 | 30 | 50 | – | 40 |
| UK | 30 | 40 | 20 | 40 | – |
Tariff amount=Tariff %×Import value (in billion USD)
Import value (Imports by X from Y) = Tariff amount (X on Y)/ Tariff % (X on Y)
1. Correct Option: 2 Rationale: To determine the highest value, we calculate the trade value for each option using the formula: Trade Value = Tariff Collected / Tariff Percentage.
For option 1, Exports by France to Japan: 3.0 billion / 0.30 = 10 billion.
For option 2, Imports by US from France (which is Exports by France to US): 6.0 billion / 0.20 = 30 billion.
For option 3, Exports by Japan to UK: 6.0 billion / 0.40 = 15 billion.
For option 4, Imports by France from India (which is Exports by India to France): 6.5 billion / 0.40 = 16.25 billion. Difficulty: Moderate
2. Correct Option: 4 Rationale: Trade Surplus or Deficit is calculated as Exports minus Imports.
First, calculate India’s exports to UK: Tariff collected is 3.0 billion and the rate is 30%. Value = 3.0 / 0.30 = 10 billion.
Second, calculate India’s imports from UK: Tariff collected is 5.0 billion and the rate is 20%. Value = 5.0 / 0.20 = 25 billion.
Trade Balance = 10 billion – 25 billion = -15 billion.
A negative balance indicates a trade deficit of 15.0 billion USD.
Difficulty: Moderate
3. Correct Option: 4 Rationale: Identify the row for the exporter (Japan) and the column for the importer (India).
From Table A (Tariffs Collected), the value for Row Japan, Column India is 3.5 billion.
From Table B (Tariff Rates), the value for Row Japan, Column India is 50% (or 0.50).
Calculate the export value: 3.5 / 0.50 = 7.0 billion USD.
Difficulty: Easy
4. Correct Option: 1 Rationale: We must compare exports to the US against imports from the US for both countries.
For France: Exports to US = 6.0 / 0.20 = 30 billion. Imports from US (US exports to France) = Tariff 5.5 / Rate 30% = 5.5 / 0.30 = 18.33 billion.
Since 30 > 18.33, France has a trade surplus.
For UK: Exports to US = 3.0 / 0.30 = 10 billion.
Imports from US (US exports to UK) = Tariff 2.5 / Rate 20% = 2.5 / 0.20 = 12.5 billion.
Since 10 < 12.5, UK has a trade deficit. Therefore, only France has a trade surplus with the US.
Difficulty: Moderate
