If the imports of Company A in 1997 were increased by 40 percent, what would be the ratio of exports to the increased imports ?

Answer: Option C

Explanation:

In 1997 for company A, we have
let export be E and Import be I
\begin{aligned}
\frac{E}{I} = 1.75\\
=> E = 1.75I\\

\text{New Imports }I_{new}=40\%&of&I\\
= 1.4I \\

\text{New ratio =}\frac{E}{I_{new}}\\
= \frac{1.75I}{1.4I} \\
= 1.25
\end{aligned}