Question

Choose a country and find out who is its' biggest trading partner in terms of exports and imports. Is it the same country for both imports and exports? Why do you think this country is the largest partner of the county you chose? Is the country you chose the biggest trading partner for the country you looked up (is the reverse situation true as far as largest trading partner)?

Answer 1

Solution:

Let, say we talk about India. So, for India the biggest trading partner are-

• In terms of exports, the biggest trading partner is United State.
• In terms of imports, the biggest trading partner is China.

It is not same country for both imports and exports. Because, in terms of exports, the biggest trading partner is United State and in terms of imports, the biggest trading partner is China. But the overall largest trading partner is China.

China is the largest trading partner in terms of import because-

1. The cost of the product is less in China in compare to other country.
2. Transportation cost is less because distance between two country is less

And U.S is the largest trading partner in terms of export because-

1. The healthy relationship between India and United State.
2. Less tariff.

No, the reverse situation is not true as far as largest trading partner.