IIFT 2011 DI | Previous Year IIFT Paper
The Chart reports Country XX’s monthly Outward Investment flows to various countries and the World. The FDI figures are reported US$ Million.
What is the compound average growth rate of Country XX’s overall Outward Investment during the period January 2011 and May 2011?
- A.
Approximately 6 percent
- B.
Approximately 3.5 percent
- C.
Approximately 5.75 percent
- D.
None of the above
Answer: Option D
Explanation :
CAGR = [(Final - Initial)(1/No. of periods) – 1] × 100
So, CAGR = (3701/3075)1/4 – 1] × 100 = 4.74 %
Hence, option (d).
Workspace:
In which month Country XX’s Outward Investment to Singapore dropped most and what is the ‘month on month’ growth in that period?
- A.
April, Approximately negative growth of 39 percent
- B.
March, Approximately negative growth of 49 percent
- C.
April, Approximately negative growth of 49 percent
- D.
None of the above
Answer: Option C
Explanation :
Outward investment to Singapore in Feb = 1221
Outward investment to Singapore in March = 741
Outward investment to Singapore in April = 378
So, negative growth in March = (741 – 1221)/1221 × 100 = 39.31%
Negative growth in April = (378 – 741)/741 × 100 = 48.98 i.e. 49%
Hence, option (c).
Workspace:
What is the share of Country XX’s Outward Investment together in USA and UK in February 2011 of its total investment in the world?
- A.
7.24 percent
- B.
8.30 percent
- C.
6.79 percent
- D.
None of the above
Answer: Option A
Explanation :
Required share = (116 + 117)/3221 × 100 = 7.23 i. e. 7.24 %
Hence, option (a).
Workspace:
In which month the share of Country XX’s total Outward Investment together in Singapore and UAE achieved the highest level and what is the value?
- A.
April, 40 percent
- B.
February, 45 percent
- C.
March, 45 percent
- D.
None of the above
Answer: Option B
Explanation :
Required percentage for:
Option 1: (378 + 157)/1390 × 100 = 38.48%
Option 2: (1211 + 227)/3221 × 100 = 44.64%
Option 3: (741 + 70)/2358 × 100 = 34.39%
Option 4 is the closest.
Hence, option (b).
Workspace:
Between February 2011 and April 2011, to which country did Outward Investment from XX witness the highest decline?
- A.
Singapore
- B.
UK
- C.
UAE
- D.
Others
Answer: Option A
Explanation :
Required decline for:
Option 1: (1211 – 378)/1211 × 100 = 68.78%
Option 2: (117 – 40)/117 × 100 = 65.81%
Option 3: (227 – 157)/227 × 100 = 30.83%
Option 4: (1551 – 686)/1551 × 100 = 55.77
Hence, Singapore has highest decline.
Hence, option (a).
Workspace:
Answer the following questions based on the Diagram below.
The chart reports certain data series from National Accounts Statistics of India at Current Prices.
The GDP is sum total of the contributions from primary sector, secondary sector and the tertiary sector. If that be the case, then over 2004-05 to 2009-10, the share of tertiary sector at factor cost in GDP has increased from:
- A.
53.05 percent to 55.27 percent
- B.
52.86 percent to 54.20 percent
- C.
53.04 percent to 55.83 percent
- D.
52.70 percent to 56.14 percent
Answer: Option A
Explanation :
The GDP from Primary and Secondary sectors and the overall GDP is given.
From the given data, we can find out the GDP from the tertiary sector.
GDP from tertiary sector in 2004-05 is [2971464 – (650454 + 744755)] = 1576255
GDP from tertiary sector in 2009-10 is [6133230 – (1243566 + 1499601) = 3390063
By observing the options, we can see that the percentage values for 2004-05 is extremely close for two options and hence we will calculate the percentage value for the year 2009-10 to begin with.
Share of tertiary sector at factor cost in GDP for 2009-10 is
× 100 = 55.27%
Only option A has 55.27 percent in it and so it is the correct option.
Hence, option (a).
Workspace:
The annual growth rate in the GNP series at factor cost was highest between;
- A.
2008-09 and 2009-10
- B.
2006-07 and 2007-08
- C.
2007-08 and 2008-09
- D.
2005-06 and 2006-07
Answer: Option D
Explanation :
GNP series at factor cost for all the years provided in the options is as follows:
Annual growth rate for the year 2005-06 to 2006-07 is
× 100 = 16.51%
Annual growth rate for the year 2006-07 to 2007-08 is
× 100 = 16.37%
Annual growth rate for the year 2007-08 to 2008-09 is
× 100 = 15.09%
Annual growth rate for the year 2008-09 to 2009-10 is
× 100 = 16.11%
We can see that the annual growth rate in the FNP series at factor cost was highest between 2005-06.
Hence, option (d).
Workspace:
Had Gross Domestic Savings (GDS) between 2008-09 and 2009-10 increased by 30 percent, then during 2009-10 GDS expressed as a percentage of GDP at market prices would have been:
- A.
33.70 percent
- B.
36.85 percent
- C.
35.69 percent
- D.
None of the above
Answer: Option C
Explanation :
The gross domestic savings for the year 2008-09 is 1798347
If it had increased by 30%, then the gross domestic savings for the year 2009-10 would have become
1798347 × 1.3 = 2337851.1
This when expressed as a percentage of GDP (for the year 2009-10) at market prices would have been:
× 100 = 35.69%
Hence, option (c).
Workspace:
Mark the highest figure from the following:
- A.
Percentage change in GDP from Secondary sector (at Factor Cost) between 2006-07 and 2007-08.
- B.
Percentage change in GDP at Market Prices between 2008-09 and 2009-10.
- C.
Percentage change in Gross Domestic Savings between 2004-05 and 2005-06.
- D.
Percentage change in Gross Domestic Capital Formation between 2008-09 and 2009-10.
Answer: Option D
Explanation :
GDP from secondary sector in 2006-07 = 1033410
GDP from secondary sector in 2007-08 = 1205464
Percentage change from secondary sector between 2006-07 and 2007-08
= × 100 = 16.64%
GDP at market price in 2008-09 = 5582623
GDP at market price in 2009-10 = 6550271
Percentage change in GDP at market price between 2008-09 and 2009-10
= × 100 = 17.33%
Gross Domestic savings in 2004-05 = 1050703
Gross Domestic Savings in 2005-06 = 1235288
Percentage change in Gross Domestic Savings between 2004-05 and 2005-06
= × 100 = 17.56%
Gross Domestic Capital Formation in 2008-09 = 1973535
Gross Domestic Capital Formation in 2009-10 = 2344179
Percentage change in Gross Domestic Capital Formation between 2008-09 and 2009-10
= × 100 = 18.78%
We can see that the percentage change in Gross Domestic Capital Formation between 2008-09 and 2009-10 is the highest among the given options.
Hence, option (d).
Workspace:
Identify the correct Statement:
- A.
GDP (at Factor Cost) expressed as a percentage of GNP (at Factor Cost) has increased consistently between 2004-05 and 2009-10.
- B.
GDP (at Factor Cost) expressed as a percentage of GDP (at Market Prices) has increased consistently between 2004-05 and 2008-09.
- C.
Gross Domestic Capital Formation expressed as a percentage of GDP (at Market Prices) has increased consistently between 2004-05 and 2007-08.
- D.
Contribution to GDP from Primary Sector (at Factor Cost) expressed as a percentage of GDP (at Factor Cost) has decreased consistently between 2004-05 and 2009-10.
Answer: Option C
Explanation :
The ratio of GDP (at factor cost) and GNP in 2006-07 is 2971464/2949089.
Note that the difference between the numerator and the denominator in the above given ratio is around 30 thousand and the denominator is close to 30 lakhs and hence this value will be around 1.01
If we observe the rest of the data for GDP at factor cost and GNP for the rest of the years, we can see that for the year 2005-06 is the ratio of GDP (at factor cost) to that of GNP is 3389621/3363505.
Note that the difference between the numerator and the denominator in the above given ratio is around 25 thousand and the denominator is close to 33.5 lakhs.
Thus the ratio will be around 1.007 which is less than 1.01
Thus option 1 is incorrect.
The ratio of GDP (at factor cost) to that of GDP (at market price) for 2006-07 is 3952241/4293672
This ratio turns out to be 0.9204
If we observe the rest of the data for the GDP (at factor cost) and that of GDP (at market price), we can see that for the year 2007-08, the ratio is 4581422/4986426
This ratio turns out to be 0.9187
We can see that the ratio and hence the percentage of GDP (at factor cost) with respect to GDP (at market price) has decreased from 2006-07 to 2007-08.
Thus option 2 is also incorrect.
The ratio of Gross Domestic Capital Formation expressed as a percentage of GDP (at Market Prices) for the years 2004-05 to 2007-08 are as follows:
We can see that the ratio and hence the percentage keeps on increasing in the given interval of time and hence option 3 is correct.
The ratio of contribution of GDP from primary sector to that of the GDP at factor cost for the interval 2004-05 to 2009-10 is as follows:
We can see that the ratio and hence the percentage has increased from 2008-09 to 2009-10.
Thus option 4 is incorrect.
Hence, option (c).
Workspace:
Answer the following question based on the information given below.
The chart reports global market share of Leading Exporting and Importing countries for Select Product groups.
Identify the highest number:
- A.
Increase in Malaysia’s share in global Chemical Products export between 2000 and 2009
- B.
Increase in India’s share in global Office and Telecom Equipment export between 2000 and 2009
- C.
Increase in Mexico’s share in global Chemical Products export between 2000 and 2009
- D.
Increase in Thailand’s share in global Integrated Circuits and Electronic Components export between 2000 and 2009
Answer: Option A
Explanation :
Since the question asks for the “highest number”, it can be inferred that the required increase is asked in terms of the increase in percentage points rather than the percentage increase.
Therefore, each required value is: Malaysia: Global Chemical Products export = 0.7 – 0.4 = 0.3
India: Global Office and Telecom Equipment export = 0.3 – 0.1 = 0.2
Mexico: Global Chemical Products export = 0.3 – 0.2 = 0.1
Thailand: Global Integrated Circuits and Electronic Components export = 2.1 – 1.9 = 0.2
Thus, the highest number value is for Malaysia.
Hence, option (a).
Workspace:
Mark the correct statement:
- A.
Barring the exception of Integrated Circuits and Electronic Components, the share of the EU has increased in global import for all other product groups.
- B.
Between 2000 and 2009, global export share has remained unchanged only for two countries.
- C.
Between 2000 and 2009, global import share has remained unchanged only for five countries.
- D.
Among all reported product groups, between 2000 and 2009, the increase in global import share in case of India has been highest for Chemical Products.
Answer: Option D
Explanation :
Here, options 2 and 3 should be calculated only at the end and that too only if, options 1 and 4 are both incorrect.
Consider option 1:
The share of EU in global import has decreased for two groups: Integrated Circuits and Electronic Components as well as Office and Telecom Equipment. Therefore, option 1 is incorrect.
Consider option 4:
The increase in global import share for India in each group is:
Clothing: 0.9 – 0.4 = 0.5
Chemical: 1.8 – 0.8 = 1.0
Automotive: 0.4 – 0.1 = 0.3
Office and telecom: 1.2 – 0.3 = 0.9
Integrated circuits and Electronic composers: 0.5 – 0.2 = 0.3
Thus, the highest increase among all groups is for Chemical Products. Therefore, option 4 is correct.
Hence, option (d).
Note:
On calculating, you can verify that options 2 and 3 are incorrect. However, in the actual exam, there is no need to calculate these values.
Workspace:
Mark the false statement:
- A.
India’s global export share for Clothing Products between 2000 and 2009 has increased by 20 percent.
- B.
Japan’s global export share for Chemical Products between 2000 and 2009 has decreased by 30 percent.
- C.
South Korea’s global export share for Integrated Circuits and Electronic Components between 2000 and 2009 has decreased by 6 percent.
- D.
Malaysia’s global import share for Clothing Products between 2000 and 2009 has increased by 100 percent.
Answer: Option C
Explanation :
India’s global export share for Clothing Products increased from 3% to 3.6% i.e. an increase of 20%
Therefore, option 1 is true.
Japans’ global export share for Chemical Products decreased from 6% to 4.2% i.e a decrease of 30%.
Therefore, option 2 is also true.
South Korea’s global export share for Integrated Circuits and Electronic Components decreased from 8% to 7.6% i.e a decrease of 5%.
Therefore, option 3 is false.
Malaysia’s global import share for Clothing Products increased from 0.3% to 0.6% i.e. an increase of 100%.
Therefore, option 4 is true.
Hence, option (c).
Workspace:
If between 2000 and 2009, India’s export market share in Integrated Circuits and Electronic Components had increased by 600 percent, the rank of the country in terms of market share in 2009 would have been:
- A.
Sixth
- B.
Eighth
- C.
Seventh
- D.
None of the above
Answer: Option B
Explanation :
India’s export market share in Integrated Circuits and Electronic Components was 0.1%.
Therefore, if it had increased by 600%, it would become 0.1 × 7 = 0.7% in 2009.
In such a case, it would only be above Canada and Mexico. Thus, it would be 8th.
Hence, option (b).
Workspace:
Considering both global export and import market dynamics, China has witnessed highest percentage change in its market share between 2000 and 2009 in the following product groups:
- A.
Integrated Circuits and Electronic Components imports
- B.
Office and Telecom Equipment exports
- C.
Integrated Circuits and Electronic Components exports
- D.
Automotive Products imports
Answer: Option C
Explanation :
China’s growth in Integrated Circuits and Electronic Components Imports
= [(32.8 – 6.3)/6.3] × 100
= 420.63%
China’s growth in Office and Telecom Equipment Exports = [(26.2 – 4.5)/4.5] × 100 = 482.22%
China’s growth in Integrated Circuits and Electronic Components
Exports = [(11.4 – 1.7)/1.7] × 100 = 570.59%
China’s growth in Automotive Products Imports = [(3.6 – 0.7)/0.7] × 100 = 414.29%
Hence, option (c).
Workspace:
Suppose the ten countries reported in the above table are arranged according to their continent: North America, EU and Asia. Then in terms of export market share for (i) Chemical Products, (ii) Automotive Products, (iii) Office and Telecom Equipment Products and (iv) Integrated Circuits and Electronic Components respectively, the continent-wise ranking in 2009 would be:
- A.
(i) EU, Asia, North America;
(ii) EU, Asia, North America;
(iii) Asia, EU, North America;
(iv) Asia, EU, North America. - B.
(i) Asia, EU, North America;
(ii) EU, Asia, North America;
(iii) Asia, EU North America;
(iv) Asia, North America, EU. - C.
(i) EU, Asia, North America;
(ii) EU, North America, Asia;
(iii) Asia, EU, North America;
(iv) Asia EU, North America. - D.
(i). EU, Asia, North America;
(ii) EU, North America, Asia;
(iii) Asia, EU, North America;
(iv) Asia, North America, EU.
Answer: Option A
Explanation :
USA, Canada and Mexico come under North America. All the remaining countries, apart from EU, come under Asia.
It can simple be observed that EU has the highest market share in Chemical Products as well as Automotive products.
Hence, option (b) can be eliminated. For Automotive products, the total for North America is 16.9 while for Asia is 21. So, Asia should be second and North America should be third.
Hence, options 3 and 4 can be eliminated.
Hence, option (a).
Workspace:
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