Directions (For the next four items): Refer to the graphs given below and answer the items that follow. Graph 1 — 'Foreign Investment Approvals and Inflows (US $ Mn.)', 1992–1996 (light bar = inflows, dark bar = approvals): 1992 inflows ~3000/approvals ~1500; 1993 inflows ~1500/approvals ~2500; 1994 inflows ~3500/approvals ~2800; 1995 inflows ~2000/approvals ~9800; 1996 inflows ~2000/approvals ~8000. Graph 2 — 'Sector-wise Foreign Investment approved for 1996' (pie): SAARC 2%, ASEAN 3%, EU 23%, NAFTA 35%, OTHER 37%.
87. If the net foreign investment inflows for the year 1997 were to grow by 20% and if the proportion of inflows was to remain the same as in case of the approvals for the year 1996, what would be the foreign investment inflows from NAFTA (in US $ Mn.)?
- A800
- B500
- C840
- D920
Explanation
1997 inflows = 1.2 × 1996 inflows ≈ 1.2 × US$2000 mn = US$2400 mn. Assuming the inflow composition matches the 1996 approvals composition, NAFTA's 35% share gives 0.35 × 2400 = US$840 mn.