Hi anksm22,

This question should be in the SC Forum, but I'll be happy to answer it anyway. This prompt is built on a Comparison. Comparison rules require that we compare LIKE things.

For example:
We can compare....
a country to a country.
a country to several countries.
a deficit to a surplus.
a surplus to several deficits
Etc.

From the answer choices, we can see that the first part of the comparison is "ongoing TRADE IMBALANCES WITH CHINA AND JAPAN", so we have to make sure that the second part of the comparison is comparable to "trade imbalances...." Answers B, C and D gives us "the United States"; answer E gives us "United States record exports." None of these is comparable to "trade imbalances." Eliminate them all. Answer A gives us "the United States trade deficit" which IS comparable to "trade imbalances."

Final Answer: A

GMAT assassins aren't born, they're made,
Rich