Question

The country with the largest %age change in FEI in 1998 relative to its FEI in 1997, is:

• A. India
• B. China
• C. Malaysia
• D. Thailand
• A. Absolute value of foreign equity inflows in 1998 was higher than that in 1997 for both Thailand and South Korea.
• B. Absolute value of foreign equity inflows was higher in 1998 for Thailand and lower for China than the corresponding values in 1997.
• C. Absolute value of foreign equity inflows was lower in 1998 for both India and China than the corresponding values in 1997.
• D. None of the above can be inferred.
• A. I, III \& IV
• B. II, III \& IV
• C. I, III \& V
• D. II \& V
• A. China’s GDP in 1998 was $40%$ higher than that of India.
• B. China’s GDP in 1998 was $70%$ higher than that of India.
• C. China’s GDP in 1998 was $50%$ higher than that of India.
• D. No inference can be drawn about relative magnitudes of GDPs.

Answer 1

The Correct Option is A

From the graph: India: $0.72 \to 1.71$, change $\approx 137.5%$ increase. China: $4.80 \to 5.96$, change $\approx 24.2%$ increase. Malaysia: $9.92 \to 10.97$, change $\approx 10.6%$ increase. Thailand: $5.09 \to 5.82$, change $\approx 14.3%$ increase. The largest percentage change is for India. \[ \boxed{\text{India}} \] %Quicktip

Answer 2

From the graph: Thailand: $5.09 \to 5.82$ (increase). S Korea: $2.16 \to 2.50$ (increase). Thus, option (1) is correct. %Quicktip

Answer 3

China: FEI ratio increased from $4.80$ to $5.96$, GDP rose, so absolute FEI increased $\Rightarrow$ I true, II false. India: FEI ratio increased from $0.72$ to $1.71$, GDP rose, so absolute FEI increased $\Rightarrow$ III true. S Korea: FEI ratio increased from $2.16$ to $2.50$, GDP fell, so absolute FEI decreased $\Rightarrow$ IV true, V false. Thus, I, III, IV are correct. %Quicktip

Answer 4

Let India’s GDP = $G_I$, China’s GDP = $G_C$. Given: \[ 0.0596 G_C = 10 \times (0.0171 G_I) \Rightarrow G_C / G_I \approx 1.5 \] Thus, China’s GDP was $50%$ higher than India’s in 1998. %Quicktip