A small correction: B, C, D and E are incorrect because they illogically compare imbalances to "the United states", not to exports. Comparison clauses used here follow the same logic as modifying clauses - they modify (compare to) the noun immediately following the comma separation. In A, that noun is "the United states TRADE DEFICIT", which can be correctly compared to an imbalance (imbalance=deficit). In B, C, D, E, the noun following the comma i the United states, followed by a verb, so the US is the only noun following the clause - creating the illogical comparison and providing the cause for elimination.

As for "that country" you are correct that it is unclear and possibly ambiguous at first glance, but A is still correct because of two reasons:

1) logically, "the US can't be "that country", as the US can't make record exports to itself.
2) Even if we accept that the phrase is ambiguous (and I do, to a certain extent, accept that), pronoun ambiguity is more of a "soft" elimination - meaning that in the GMAT, the correct answer choice can still include ambiguity, if the other answer choices contain even worse grammar/logic mistake. The same cannot be said for the logic/grammar comparison errors committed by the other answer choices - the correct answer choice cannot contain grammar errors. Thus, A is chosen as the "least worst" answer choice.

Thanks for clarifying Geva.

One more question while we are on it. In B, C and D the sentence use a phrase 'sold record export'. Now technically I am assuming we can't sell export itself. A country can make record export or do record export but the export itself can't be sold.

I am not sure if this is considered an incorrect meaning and hence can be eliminated?

It's quite possible what I think of incorrect meaning, the GMAC might not think the same way as is the case above.

kuiper wrote:Thanks for clarifying Geva.

One more question while we are on it. In B, C and D the sentence use a phrase 'sold record export'. Now technically I am assuming we can't sell export itself. A country can make record export or do record export but the export itself can't be sold.

I am not sure if this is considered an incorrect meaning and hence can be eliminated?

It's quite possible what I think of incorrect meaning, the GMAC might not think the same way as is the case above.

I didn't pick up on it at first, as I was looking at the grammar errors (modifier and tenses errors)I believe you are both wrong and right - I checked dictionary.com, and the noun "export" can be used as "something that is exported; an article exported: Coffee is a major export of Colombia." thus, it s technically possible to "sell and export" - sell something that is exported.
You are right that if a sentence uses "sell and export", it commits the highly irregular stylistic error of awkwardness - if you're going to "sell an export", you might as well just use the more concise and effective verb "export". This stylistic error is also a "soft" elimination - meaning that the right answer choice can still use something awkward if the other answer choices do something even worse, but it is very likely that the correct answer choice will also address the awkward. Treat this much like you would treat an answer choice which uses "had a success" - it's not grounds for immediate and outright elimination, but there will probably be an answer choice which uses the more concise "succeeded" - just need to see that it doesn't do anything worse.