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📌 Section 1 is Logical reasoning specially designed for CAT
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SET 1 — 🔍 CAT Level
Five countries—USA, India, China, Russia, and Saudi Arabia—engage in trade with each other. Each country imports goods only from the other four countries and exports goods only to them. All trade volumes are expressed in billion USD.
The table below shows partial information on the percentage distribution of exports of each country to the other four countries. Imports from one country to another are equal to the exports from the latter to the former.
The trade surplus of Country A with Country B is defined as:
Trade Surplus = Exports from Country A to Country B − Imports of Country A from Country B
If this value is negative, it is called a trade deficit.
The following additional information is known:
(i) 32% of the USA’s imports are from China, while 25% of Saudi Arabia’s imports are from Russia.
(ii) The USA has an overall trade deficit of 100 billion USD, while Saudi Arabia has an overall trade surplus of 80 billion USD.
(iii) The ratio of the total exports of the USA to China is 1 : 1, while the ratio of the total exports of Russia to Saudi Arabia is 15 : 14.
Question 1
What is the total value of the USA’s imports, in billion USD?
Question 2
What is the value of India’s exports to Saudi Arabia (in billion USD)?
Question 3
Which of the following statement(s) is/are true?
I. India’s trade surplus is 80 billion USD.
II. Russia’s trade deficit is 124 billion USD.
I only
II only
Both I & II
Neither I nor II
Question 4
With which of the following countries does China have a trade surplus?
USA
India
Russia
Saudi Arabia
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✅ Answers & Explanations
Completed percentage Table
Exporter ↓ / Importer → | USA | India | China | Russia | Saudi Arabia |
|---|---|---|---|---|---|
USA | — | 30% | 40% | 10% | 20% |
India | 30% | — | 25% | 20% | 25% |
China | 40% | 0% | — | 25% | 35% |
Russia | 24% | 40% | 16% | — | 20% |
Saudi Arabia | 5% | 25% | 30% | 40% | — |
Completed trade value table
Exporter ↓ / Importer → | USA | India | China | Russia | Saudi Arabia |
|---|---|---|---|---|---|
USA | — | 120 | 160 | 40 | 80 |
India | 168 | — | 140 | 112 | 140 |
China | 160 | 0 | — | 100 | 140 |
Russia | 144 | 240 | 96 | — | 120 |
Saudi Arabia | 28 | 140 | 168 | 224 | — |
Set 1
1️⃣ USA’s total imports = 500 billion USD
2️⃣ India’s exports to Saudi Arabia = 140 billion USD
3️⃣ Correct option: 4) Neither I nor II
India’s trade surplus = 60, not 80.
Russia has a trade surplus of 124, not deficit.
4️⃣ China has a trade surplus with: 3) Russia ✅
Let total exports be:
USA = 400
India = 560
China = 400
Russia = 600
Saudi Arabia = 560
Why these values?
Given:
USA : China = 1 : 1
So, USA exports = China exports = 400 each
Russia : Saudi Arabia = 15 : 14
So, Russia exports = 600, Saudi Arabia exports = 560
Now, using USA import condition:
China exports to USA = 40% of 400 = 160
This is 32% of USA’s total imports.
So, USA’s total imports = 160 ÷ 32% = 500
Since USA has trade deficit of 100:
USA imports − USA exports = 100
500 − USA exports = 100
USA exports = 400
This confirms USA = 400 and China = 400.
Saudi condition:
Russia exports to Saudi Arabia = 20% of 600 = 120
This is 25% of Saudi Arabia’s imports.
So, Saudi Arabia’s imports = 120 ÷ 25% = 480
Saudi has surplus of 80:
Saudi exports − Saudi imports = 80
Saudi exports − 480 = 80
Saudi exports = 560
So Russia = 600 because Russia : Saudi = 15 : 14.
Q1. USA’s total imports
USA imports = from India + China + Russia + Saudi Arabia
= 168 + 160 + 144 + 28
= 500 billion USD
✅ Answer: 500
Q2. India’s exports to Saudi Arabia
India exports = 560
India → Saudi Arabia = 25% of 560
= 140 billion USD
✅ Answer: 140
Q3. Which statements are true?
India exports = 560
India imports = from USA + China + Russia + Saudi Arabia
= 120 + 0 + 240 + 140
= 500
India surplus = 560 − 500 = 60, not 80.
So statement I is false.
Russia exports = 600
Russia imports = from USA + India + China + Saudi Arabia
= 40 + 112 + 100 + 224
= 476
Russia surplus = 600 − 476 = 124.
It is not a deficit.
So statement II is false.
✅ Answer: 4) Neither I nor II
Q4. With which country does China have a trade surplus?
China vs USA:
China → USA = 160
USA → China = 160
No surplus.
China vs India:
China → India = 0
India → China = 140
China has deficit.
China vs Russia:
China → Russia = 100
Russia → China = 96
China has surplus of 4.
China vs Saudi Arabia:
China → Saudi = 140
Saudi → China = 168
China has deficit.
✅ Answer: 3) Russia
⚡ Brain teasers are not just about getting the right answer — they train you to think differently under pressure.
Stay consistent with your daily practice, challenge your assumptions, and keep sharpening your reasoning skills.
See you in tomorrow’s challenge!