Solution
The data describes bilateral trade flows among four entities: P, X, C and ROW. The natural way to organise this is a matrix where each row is an exporting entity and each column is an importing entity. The cell in row , column holds the volume exported from to .
Row totals give each entity's total Exports; column totals give total Imports.
Domestic trade for P, X, C is not counted as trade, so those diagonal cells are marked . ROW represents many countries, so (trade among rest-of-world countries) is a genuine flow and must be tracked.
Using normalized balance , the three balance conditions convert to:
P: .
X: .
C: .
| From | P | X | C | ROW | Exports |
|---|---|---|---|---|---|
| P | — | ||||
| X | — | ||||
| C | — | ||||
| ROW | |||||
| Imports |
| From | P | X | C | ROW | Exports |
|---|---|---|---|---|---|
| P | — | 600 | 1200 | ||
| X | — | 0 | |||
| C | — | ||||
| ROW | 0 | ||||
| Imports | 1200 |
From clue 5, and are filled directly.
Clue 5 also states P is the only country exporting to C. Hence and , and all of C's imports come from P:
Imports of C .
| From | P | X | C | ROW | Exports |
|---|---|---|---|---|---|
| P | — | 600 | 1200 | ||
| X | — | 0 | |||
| C | 720 | 48 | — | 32 | 800 |
| ROW | 0 | ||||
| Imports | 1200 |
C's row is filled. For C, and , so .
Clue 3 splits C's exports: to P, to ROW, leaving to X.
.
.
.
Exports of C .
| From | P | X | C | ROW | Exports |
|---|---|---|---|---|---|
| P | — | 600 | 1200 | 200 | 2000 |
| X | — | 0 | |||
| C | 720 | 48 | — | 32 | 800 |
| ROW | 0 | ||||
| Imports | 2000 | 1200 |
Let denote imports of P. Since P's balance is , exports of P also equal .
Exports of P , so .
Clue 2: and , giving .
Imports of P ,
so .
Clue 4: , so and .
Imports of X .
X's balance gives imports .
So .
Exports of P Imports of P , and .
| From | P | X | C | ROW | Exports |
|---|---|---|---|---|---|
| P | — | 600 | 1200 | 200 | 2000 |
| X | 440 | — | 0 | 660 | 1100 |
| C | 720 | 48 | — | 32 | 800 |
| ROW | 0 | ||||
| Imports | 2000 | 1200 |
With , X's row follows.
.
.
Since , the remainder goes to ROW: .
Exports of X .
| From | P | X | C | ROW | Exports |
|---|---|---|---|---|---|
| P | — | 600 | 1200 | 200 | 2000 |
| X | 440 | — | 0 | 660 | 1100 |
| C | 720 | 48 | — | 32 | 800 |
| ROW | 840 | 252 | 0 | 1008 | 2100 |
| Imports | 2000 | 900 | 1200 |
The ROW row is filled.
.
.
Clue 4 gives the split of ROW exports: to P, to X, to C, leaving internal.
.
.
Exports of ROW .
Column X now sums to , matching X's imports.
| From | P | X | C | ROW | Exports |
|---|---|---|---|---|---|
| P | — | 600 | 1200 | 200 | 2000 |
| X | 440 | — | 0 | 660 | 1100 |
| C | 720 | 48 | — | 32 | 800 |
| ROW | 840 | 252 | 0 | 1008 | 2100 |
| Imports | 2000 | 900 | 1200 | 1900 |
The last column total is computed:
Imports of ROW .
Summary of totals and balances:
P: , , balance , total trade .
X: , , balance , normalized , total trade .
C: , , balance , normalized , total trade .
ROW: , , balance , total trade .
The world balances sum to , as required. All values are uniquely determined.
P has a balance, so exports imports . Solving the system (clues 2 and 4 with X's balance) gives . Since P's exports , we get .